In contemporary India, mobile payments startedwith the onset of delivery services known as Immediate PaymentServices (IMPS) started by the National Payment Corporation ofIndia, setting the growth cycle in motion. Mobile Money hasgrown significantly, especially post demonetization, enabled by‘smart devices’ such as smartphones, smartwatches, smart cards,toll payment devices, and voice-enabled products deploying theInternet of Things (IoT). The ease and simplicity of paymentsthrough IoT devices are set to change the shopping experienceand consequently retail permanently. The government of India'sDigital India program is further likely to transform the entirenation into a digitally enabled society as well as a knowledgeeconomy. Mobile money is becoming an essential tool forfinancial inclusion to unite the unbanked communities of ruralIndia. Internet was introduced in India in 1995, and the firstwave of e-commerce began soon after that. Artificial Intelligence(AI) and smart solutions are noticeable in the growth of mobilepayments in India in dual ways, firstly in reducing fraud in highrisk mobile payments and secondly in improved Peer to Peer(P2P) Payment Platforms. Mobile payments through AI solutionsis just one illustration of technology that is broadly used today,and that has already started advancing the FinTech industryforward for the Fourth Industrial Revolution. This embarks on asound period of digital inclusion leading to mobile and internetconnectivity, with the overall growth of Information andCommunication Technology (ICT) networks in India. A dynamicforce for next-generation e-commerce is the fast-multiplication ofmobile phones, handheld computers, mobile devices and PDAs.Mobile commerce demonstrates a sea change in consumerbehavior in India. This study aims to examine the growth andeffect of mobile payments in India, where mobile penetration isthe second highest in the world, after China. The impact ofCOVID-19 pandemic on the digital payments segment in Indiaare noteworthy.. Like other economies of the world, the adverseeffects of the pandemic are pervading to significant sectors of theIndian economy including retail trade, aviation, hospitality,entertainment industry, restaurants, clubs and entertainmentparks. All of these sectors are experiencing the burden of theslowdown. In contrast, the digital payments sector comprising ofgroceries, online money transfer, Over The Top - OTT streamingmedia services, online gaming, online education is experiencing aboost. The government and RBI have asked banks to encouragetheir clients to use digital payment methods as a preventivemeasure against the COVID-19 pandemic. CITATIONM. Jakhiya, M. Mittal Bishnoi and H. Purohit, "Emergence and Growth of Mobile Money in Modern India: A Study on the Effect of Mobile Money," 2020 Advances in Science and Engineering Technology International Conferences (ASET), 2020, pp. 1-10, doi: 10.1109/ASET48392.2020.9118375.