The rise of smart phones has drastically changed the perception of money transactions. Due to the increasing number of people using mobile data, the number of firms that provide mobile payment solutions has also increased. The rise of mobile wallets has led to a change in the way people make and receive payments. Although the technology has many advantages, the number of people who use it has remained low in rural locations. The aim of this research is to examine the adoption of m-wallets in Bangalore rural district by identifying motivating factors to use and the real time challenges faced by the users along with m-wallets are alternative or substitute to the traditional payment methods like cash, Debit card, Credit card etc., found that the adoption of m-wallets is less in rural areas and m-wallets are not the alternative only substitute mode of payment to the other traditional payment methods.