The issue that the handling fee income of small payments by commercial banks is affected by the penetration rate of digital RMB wallets is discussed in this article. With the continuous expansion of the pilot scope of digital RMB, the penetration rate of its wallets has risen rapidly, which brings new challenges and opportunities to the small payment business of traditional commercial banks. This study collected relevant data from digital RMB pilot regions from 2020 to 2022 using quantitative analysis methods, and established a relationship model between the penetration rate of digital RMB wallets and the small payment handling fee income of commercial banks. The results show that when the penetration rate of digital RMB wallets increases, the small payment handling fee income of commercial banks decreases. The increase in the penetration rate will lead to varying degrees of reduction in the small payment handling fee income of commercial banks. However, the research also found that some banks have new income growth channels after actively developing digital RMB-related businesses. This article further analyzes the impact of this trend on the business transformation and innovation of commercial banks and puts forward corresponding strategic suggestions. The research results can provide important references for commercial banks to adjust and develop their business in the era of digital currency.