The Covid-19 pandemic had rewritten the pattern of life for the past two years and has led to a newfound outlook that forced people to follow lockdown regulations and social distancing. When the pandemic accelerated the digitalization of the economy, digital payment services secured the spotlight as the preferred mode of payment. The sudden situation had caused an unpredictable surge in the demand for digital, contactless payments and lead to an increase in the use of digital payments. This study explores the effects of digital payment services. The purpose of the research is to find if digital payments will still have an upper hand after the pandemic, by studying the impact on digital payments, challenges faced, opportunities provided during the pandemic and the future after the pandemic. It is further supported by findings in primary data of people’s usage, awareness, benefits derived, and habits of digital payments using primary data. An electronic questionnaire was distributed to the people residing in Chennai city, who will be the population. A sample of 100-150 people will be chosen for this purpose. The findings and analysis are done by using MS Excel.