The cashless economy has transformed transactions in Hyderabad’s hotel sector through UPI, debit cards, credit cards, mobile wallets, internet banking, and QR-based payments. This study examines how digital payments influence customer satisfaction, operational efficiency, business performance, payment security, and transaction convenience. It also identifies challenges including network problems, payment failures, cybersecurity concerns, transaction costs, and staff preparedness. Data were collected from 100 respondents through a structured questionnaire, supported by secondary data from RBI publications and research articles. Percentage analysis was applied to interpret the responses. Findings indicate positive effects on efficiency and satisfaction, while stronger infrastructure and security remain necessary for sustainable cashless payment adoption.