Abstract
The adoption of digital wallets has rapidly gained traction in India, offering a modern alternative method to traditional cash transactions. This paper explores the role of digital wallets in reducing cash usage, comparing them with traditional methods and identifying the factors influencing their adoption. India, a historically cash-dominated economy has seen a gradual shift towards digital payments, driven by the Government initiatives such as Digital India Campaign and the demonetization policy of 2016. Digital wallets such as Paytm, PhonePe, Google Pay offer convenient, secure and efficient means for conducting financial transactions. However, there are some challenges including limited access to technology, digital literacy gaps and concerns about cyber security. By assessing these factors, the paper examines the barriers to widespread digital wallets adoption in India and outlines the reason for continued reliance on cash. It concludes that while digital wallets have significantly reduced cash transactions in urban areas, further efforts are needed to bridge the digital divide and improve trust in digital systems to ensure broader acceptance across the country.
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