Digital Payment System is the new age technology changed the way society functions in a large scale. It means money being transferred from one account to another through wireless data using just electronic devices securely. Over the last two years itself, we have seen tremendous growth in the usage of this system. With it being used by everyone from five star hotels and local street vendors, it has quickly become one of the most used payment methods in our country, strongly competing with cash and card payments regardless of it being very recent compared to conventional methods. Ofcourse it has its challenges and risks as well but its scope is quickly rising to become an integral part of our society for a long time. Digitalization is development and the effect that digital payment system has and is having on India is one great example of that.