In the present world, smartphones play an essential role in the daily life of many people. The technological advancement has made smartphones as devices for digital users to make money transactions or payments by using applications installed in the smartphone. Therefore, the article focuses on the adoption of digital wallet among undergraduates. Our paper also discusses some of the risks and challenges faced by the undergraduates in using a digital wallet. This study methodology is based on the qualitative method. Focus group interview will be conducted with undergraduate students. The study revealed that device compatibility, convenient to use, ease of use, cashback and reward, and strongly influence the use the digital wallet. use the digital wallet. This paper presents the findings of this study by suggesting and providing some implication on how service providers could improve their product and service to ensure alignment with students' preferences.