In India, the adoption rate towards the digital payments and wallets has increased extensively through many payments platforms. This paper mainly focuses on the street vendors or micro entrepreneurs adopt themselves towards this technological advancements and digital wallet usage. The Primary Data relating to the study are collected from street vendors in Coimbatore city through structured questionnaire. A sample size of 152 respondents has been taken for the study by adopting purposive sampling technique. The findings are interpreted to understand the extent of digital wallet adoption among vendors, perceived benefits and challenges of using digital wallets and effect of digital wallets on vendors’ sales, customer base, and operational efficiency. Furthermore, the study aims to understand the benefits and challenges associated with digital wallets from the vendors’ perspective, as well as the broader socio-economic implications of this shift towards digital payments.