The blistering pace of digital technology has transformed the banking industry, and e-banking has become one of the most prominent service delivery channels. However, as competition intensifies and customer needs become more uncertain, customer participation has become a critical concern for banks. In this respect, this theoretical treatise explains the contribution of gamification to customer interaction in e-banking, especially the mediating effect of hedonic motivation. Gamification, hedonic motivation, and customer engagement are holistically integrated into the research's conceptual framework. The gamification of digital banking systems would increase users' intrinsic enjoyment and experience through points, badges, rewards, and challenges. Hedonic motivation, which is fun, pleasure, and enjoyment, is one of the psychological mechanisms identified to drive user engagement more than functional benefits. The article hypothesises that customer engagement is directly and indirectly affected by gamification. Although gamified features can directly stimulate user participation, they are much more effective when they engage hedonic motivation. In this context, hedonic motivation is considered a mediating variable that reinforces the relationship between gamification and customer engagement. The current body of literature is also applicable to this research study, as the emphasis has shifted from utilitarian aspects of e-banking to experiential and motivational ones. It has also provided useful managerial insights, suggesting that banks implement gamification techniques to enhance their online experience, making it more engaging, interactive, and user-friendly. The suggested structure provides a basis for future empirical studies to confirm the relationships and investigate additional variables across different banking settings.