The advent of digital payments in the last few years had not only led to the proliferation of electronic wallets or e-wallets where users deposit their funds and then use them to make secured and efficient transactions. E-wallet make it as an expectation; to give the customers the concrete, safe, and efficient way to manage digital assets like cryptocurrencies, and also tends to facilitate online transactions. In essence, this paper discusses the evolution of digital wallets in the timeframe of 2008 and present, giving spotlight to the difficulties such as security and interoperability. These factors are facilitated through technological advancements, ambiguous regulations and the change in consumer behaviors. Innovative solutions provided are the latest technologies in security and establishments of joint-ventures industries, among others. Trends forecast beyond 2021 include the merging of cryptocurrencies and decentralized finance and potential threats like quantum-resistant encryption. A digital wallet consisting of a digital block and a program called "the agent" has been designed by us. This program is responsible for conducting trading operations, sending and receiving money, as well as verifying the digital currency based on the permissions granted by the issuing bank. The wallet has been encrypted using the cyclic present lightweight block cipher algorithm. The growth of electronic wallets, also known as e-wallets, has facilitated cashless, safe, and effective transactions for small business owners and customers. The research developed a technique to pinpoint the transactional structure of the digital economy's e-wallet payment system, aiming to increase public awareness of digital currency and encourage its use in online transactions.