The rapid expansion of digital payment systems has transformed the financial landscape of India, with mobile wallets emerging as a dominant mode of transaction. Government initiatives, increasing smartphone penetration, and the Unified Payments Interface (UPI) have accelerated the shift toward cashless payments. While metropolitan areas have shown high adoption levels, semi-urban and rural districts such as Palghar require focused empirical analysis. This study examines the extent of mobile wallet usage, factors influencing adoption, purposes of usage, and challenges faced by users in Palghar District. Primary data were collected through a structured questionnaire administered to residents of the district. The findings reveal a high level of mobile wallet adoption, especially among youth and educated respondents, driven mainly by convenience and speed. However, challenges such as internet connectivity issues, security concerns, and limited digital literacy persist. The study highlights the need for targeted digital financial inclusion policies to ensure balanced regional development.