Abstract
<jats:p>Formulation of the problem. The application of electronic money plays a strategic role in the national payment system. It increases the share of cashless payments, expands financial inclusion, and ensures the security of payment operations. In Azerbaijan, the electronic money ecosystem has been formed mainly due to the development of payment systems by the Central Bank, the expansion of the fintech sector, and the promotion of digital payment services. The purpose of the study is to analyze the role and prospects of development of electronic money in the national payment system. The object of the study is the organizational, methodological and technological aspects of strengthening internal control systems through the implementation of modern digital technologies and innovative monitoring tools. Research methods. Using a descriptive-analytical methodology based on secondary data, regulatory documents, corporate reports, and international assessments, the paper evaluates the extent to which digitalization, automation, data analytics, and continuous control mechanisms have strengthened internal control effectiveness. The main hypothesis. Electronic money institutions enhance the speed of transactions, reduce operational costs, and strengthen the resilience of the national payment system. Present of the main material. This paper analyzes the current state of electronic money, its impact on the national payment system, and its future development prospects based on the official materials of the Central Bank. The study shows that the legal framework, real-time payment systems, cybersecurity, and fintech innovations constitute the main directions for the further development of electronic money. Originality and practical significance. Despite progress, the country faces shortages of domestic investment, technological dependence on imported high-tech equipment, the need to modernize digital networks, and challenges related to social adaptation of workers in traditional sectors. Conclusions and prospects for further research. In conclusion, it can be stated that electronic money has become one of the key strategic trends in the development of Azerbaijan’s national payment system. The broader adoption of electronic money provides a significant impetus for the country’s financial stability, the growth of the digital economy, and the development of a cashless society model. Therefore, the development of electronic money plays a decisive role not only in the financial sector but also in shaping the country’s overall digital future.</jats:p>