Digital payment is a way of payment made through digital modes. In digital payments, payer and payee both are use digital modes to send and receive money. No hard cash is involved in digital payments. Mobile phone is the key factors are significantly undermining rural India’s ability to fully intergrate into the digital economy. Household expenses represent a pre person breakdown of general living expenses. It includes the amount paid for lodging food, consumed within the home, utilities paid and other expenses. Utilities continue to wrestle the challenge of harnessing the power of technology to make their operations more efficient and drive innovation. Electricity, Gas, water utilities are working hard to deploy smart meter infrastructure. The study was conducted by using interview method in trichirappalli district from 200 respondents. This paper attempts to highlight the usage of utility bill payment through mobile payment system and other mode used by the non users, the impact and constraints involved in that process and to identify the opportunities and challenges that exist and provide suggestions to overcome the same.