India s payment banking system was designed with the primary goal of promoting digital transactions and financial inclusion. After two to three years since they first entered the scene, the model has come under fire for several reasons. According to studies, payment banks face stiff competition from commercial banks and are hindered by the nature of their business. This study tries to assess how customers perceive the position of payment institutions. A primary survey was conducted using a carefully designed questionnaire. Users decisions to utilize the services of payment banks are influenced by privacy, security, and convenience. In India, the usage of the internet and mobile phones has increased significantly during the past ten years. The use of digital payment is growing exponentially as a result of rising internet usage, mobile phone penetration, and government initiatives like Digital India. However, there are still a lot of individuals out there who are unwilling to accept this financial system because they fear being taken advantage of. The current article will aid in determining how customers perceive payment banks, particularly in the Odisha city of Bhubaneswar.