A few years back e-wallets, mobile banking, internet fund transfers were hardly heard of. But with the introduction of 3G and 4G connectivity, surge in the use of smartphones has seen a shift towards faster and instant modes of payment. The government of India also in the recent years has led the innovative “Digital India” campaign to move the economy towards a cashless one as cash generates black money. In order to curb this and maintain a trail of transactions done by individuals it is essential to promote digital payments. Debit cards, credit cards, payment banks, point of sale, UPI, net banking etc. have played tremendous role in promoting digital economy. Government has launched various applications, BHIM being the most popular one, to promote e-commerce. Almost all the ministries have one or other app which handles their respective works. The payment industry is growing rapidly due to better infrastructure, new promotion tactics, better access to internet, increased use of smartphones, ease of payments. In June 2018, the value of transactions made through mobile wallets touched a record of Rs.14632 crore. Debit and credit card transactions also hit a new record of Rs 3.62 trillion in June 2018. Transactions which were earlier possible only by going to the Bank are now just a mobile click away. The paper attempts to study the reasons for growth of the e-commerce industry, the factors promoting its development and future of mobile banking in India.