Advances in technology, government initiatives, and changing customer preferences are all contributing to the financial landscape's transformation in urban India through the quick adoption of digital payment methods. This study looks at the economic and social impacts of electronic payment methods, including card payments, mobile wallets, and the Unified Payments Interface (UPI), in addition to the factors controlling their adoption in cities. Widespread smartphone use, improved internet connectivity, and laws like the demonetization and Digital India, among others, are important factors that have sped up the transition to cashless transactions. Benefits including increased financial inclusion, better efficiency of transactions, and economic growth are highlighted in the report. In 2024, UPI alone will be responsible for over 80 percent of digital payment volume. Yet problems such as cybersecurity concerns, retailer approval challenges, and gaps in digital infrastructure all remain. Based on frameworks such as the Technology Acceptance Model (TAM), this study uses a mixed-methods approach that includes surveys and secondary data analysis to look into customer opinions, trust, and behavioural intentions. In addition to emphasizing the necessity of comprehensive safety precautions and inclusive policies to maintain growth and reduce inequality, the findings highlight the exciting possibilities of digital payments in urban India. Technological developments, government programs, and shifting consumer habits all contributed to the financial landscape's transformation in urban India through the rapid acceptance of digital payment methods. This study looks at the socioeconomic effects of digital payment systems, including card payments, mobile wallets, and the Unified Payments Interface (UPI), as well as the factors driving their use in urban areas. Widespread smartphone use, increased internet connectivity, and laws like demonetization and the Digital India campaign are important factors that have sped up the transition to cashless transactions. Benefits such as increased financial inclusion, better transaction efficiency, and economic development are highlighted in the paper. In 2024, UPI alone will account for more than 80% of digital payment volumes. But problems including cybersecurity worries, merchant acceptance obstacles, and gaps in technology still exist. Based on frameworks such as the Tech Acceptance Model (TAM), this study uses a mixed- methods approach which involves surveys and secondary data analysis to examine customer perceptions, trust, and intent to act. In addition to highlighting the necessity of strong security measures and inclusive policies to maintain growth and alleviate inequality, the findings highlight the revolutionary promise of digital payments in urban India.