Digital transformation in the state financial system is an important step in terms of modernization of national economies and optimization of public services. This transformation, which directly impacts factors such as economic efficiency, the quality of public services, and transparency in government-citizen relations, is further reinforced by the optimization of payment systems. The State Electronic Payment System plays a significant role in the development of Azerbaijan's National Payment System. The system functions as a centralized platform that enables the electronic and real-time payment of fees and other charges for services provided by government agencies. The establishment of the system aims to enable payments through a single platform, eliminate cash payments to the state budget outside the banking system, increase transparency, and ensure the flexible management of financial processes. At the same time, payment instruments and financial market infrastructure are constantly evolving under the influence of the changing needs and expectations of the population, businesses, and the state. New technologies that support the implementation of innovations play a crucial role in the development of the payment sector. The article explores the potential of machine learning and artificial intelligence technologies, which can have a significant impact on payment services and the entire financial sector. In this context, the article examines the necessity of integrating a fraud monitoring system capable of analyzing every payment and money transfer (pp.47-55).