Banking sector is considered a key segment for accelerating economic, financial and social growth in India. It has witnessed significant growth in recent past through innovations and technological upgradations. With its potential it is on the way in transforming the cash economy into a digital economy. ICT has contributed towards growth of digital payment mechanism and e channel. The demonetization drive has boosted the electronic path in banking community and thus financial inclusion in the nation. Digitalization of banking sector has provided the customer with lots of benefits. On one hand it adds value to the customer satisfaction and on the other hand is loaded with many types of associated risks of banking environment in Indian scenario. The digital economy has promoted the use of digital payment modes for transactions and settlements. The present paper studies the attitude of customers towards digital payment services. The digital payment mechanism includes various modes of digital payment. A study was carried out with primary data collected through a questionnaire in Jaipur city and Chi square test was used to test the hypothesis. The test results revealed the acceptance of alternate hypothesis. The paper concludes with recommendation that the technological driven risks and security issues need to be sorted out on priority to enhance customer confidence towards the innovative channels.

KEYWORDS:  Payment Gateway, E- banking, Digitalization, Technology and Digital Economy.