Transforming Payments in a Smart City: The Rise of Digital Wallets in Mangalore

In the era of digital transformation, financial transactions are rapidly shifting from traditional cash-based systems to digital platforms. This study investigates the adoption of digital wallets in Mangalore, an emerging Smart City, focusing on their usage patterns, influencing factors, and key barriers. Primary data was collected from 300 respondents across various demographic groups using a structured questionnaire. Descriptive statistics, paired-samples t-tests, and multiple regression analyses were employed to assess digital wallet usage compared to cash transactions, the impact of demographic and technological factors, and the perceived barriers to adoption. Results indicate that digital wallet usage is significantly higher than cash for routine financial activities. Adoption is strongly influenced by age, education level, smartphone access, and perceived ease of use, while security concerns, technical issues, and digital illiteracy remain significant obstacles. These findings highlight the growing acceptance of cashless payments in Mangalore but underscore the need for improved digital literacy, enhanced security measures, and supportive infrastructure. The study provides insights for policymakers, financial institutions, and technology providers to strengthen digital payment ecosystems in urban India.