Any software, electronic gadget, or internet service that enables electronic transactions for people or companies is referred to as a digital wallet. There is no longer a need for physical wallets because a digital wallet securely and compactly saves all of the users’ payment information. The impact of digital wallets on consumer purchasing behavior is examined in this study, along with how these shifts affect sustainable economic growth. By enabling users to deposit funds and make payments via smart phones, digital wallets have emerged as a significant part of the digital payment process as an alternative to conventional payment methods. The study’s goals included identifying the factors that support and hinder the utility of digital wallets, analyzing their impact on sustainable economic growth, and looking at how the use of digital wallets affects consumer purchasing patterns. Both descriptive and inferential statistics were utilized in the study’s mixed method approach to assess the data. Customers who use their digital wallets were requested to complete a questionnaire in order to collect primary data. In order to assure diversity based on demographic parameters and consumption trends, the study employed a stratified random sample technique. Descriptive statistics was used to study the demographic factors whereas inferential tools like multiple regression, chi-square test, and correlation tests were used to check the relationship between the use of digital wallets, sustainable economic growth, consumer buying behavior, and challenges faced due to digital wallets. People who regularly use digital wallets were chosen as respondents for the study. A sample of 468 was gathered from important cities. The findings from the analysis explain that using a digital wallet considerably boosts consumer spending, mainly for e-commerce and all online payments. The study concluded by outlining how these digital wallets promote sustainable growth by enhancing financial inclusion and lowering transaction costs. However, wider use is hindered by cybersecurity issues and a lack of knowledge about digital wallets. The study’s conclusion describes how digital wallets have a bigger influence on sustainable economic development and consumer purchasing behavior. It also implies that positive outcomes can be achieved by reducing adoption barriers and promoting increased financial knowledge.