With respect to the Active modes of Revenue and Payment Systems, India has recently witnessed stupendous progress due to Technological improvements, Government interventions, and Increasing penetration of smartphones. Digital wallets are evolving as a payment mode due to the fact that they are convenient, secured, and work alongside these seamless financial services. It has, nevertheless, been observed that Generation Z appears to be a Digital-first generation, but their adoption of Digital wallets has been inconsistent. The purpose of this study is to analyze the different factors affecting the adoption or nonadoption of Digital wallets by Generation Z, which are perceived ease of use, perceived usefulness, and perceived security. A structured questionnaire is used to collect cross-sectional data from 220 Gen Z respondents. Data were analyzed using SPSS ANOVA for establishing statistical analysis, as my intention was primarily to analyze the impact of these factors on the acceptance behavior. But, security being always a concern, it has been accepted that adoption is convenience-led and utilities driven. This signifies valuable insights for Pay-tech companies, policy makers, and corporations trying to augment the digital payment framework towards the trustworthiness of Digital wallet services. People would be confident that their concerns on security would be addressed, and the experience improved to hasten the seamless transition to a cashless economy.