Background: The convergence of artificial intelligence (AI) and blockchain technologies with digital payment systems creates unprecedented opportunities for financial inclusion in emerging economies. However, adoption patterns and mechanisms among urban populations in Indonesia remain underexplored, particularly in the context of AI-blockchain integrated systems.

Objective: This study develops and validates an integrated AI-blockchain fintech adoption model for digital payment users across five major Indonesian cities, examining determinants, mediation mechanisms, and multi-dimensional impacts of technology convergence.

Methods: We employed a sequential explanatory mixed-method design encompassing: (1) systematic review of 301 studies (2002-2025); (2) cross-sectional survey of 847 digital payment users in Jakarta, Surabaya, Bandung, Medan, and Makassar; (3) 15 focus group discussions with 112 participants; and (4) structural equation modeling (SEM) with AMOS 26.0. The AI-Blockchain Payment Integration (AI-BPI) framework was developed through iterative validation cycles.

Results: AI-enhanced personalization emerged as the strongest adoption determinant (β=0.762, p<0.001), followed by blockchain-enabled trust (β=0.718, p<0.001) and perceived financial benefits (β=0.695, p<0.001). Infrastructure readiness demonstrated significant positive effects (β=0.621, p<0.001), while security concerns showed negative influence (β=-0.487, p<0.001). The dual-mediation mechanism through AI-personalization and blockchain-security pathways generated cascading impacts across individual adoption (β=0.741), transaction efficiency (β=0.693), financial inclusion (β=0.667), and ecosystem development (β=0.625). Model fit indices confirmed excellent validity (χ²/df=1.89, RMSEA=0.038, CFI=0.98, TLI=0.97). Qualitative analysis revealed five transformation dimensions: enhanced trust through blockchain transparency, intelligent payment routing via AI algorithms, frictionless user experience, automated fraud detection, and inclusive financial access.

Conclusions: AI-blockchain integration creates synergistic effects transcending individual technology benefits in digital payment adoption. The AI-BPI framework provides actionable guidance for practitioners and policymakers, with implications for accelerating financial inclusion through technology convergence in emerging markets.