This article analyses new and various forms of payments(E-money) instruments that have emerged with thechnological innovations and its economic,social and institutional(legal) effects. These new forms of payments  are basically smart cards and software- based products that could make payments via the Internet. Althogh this products could, in principal, improve the efficiency of payment systems,but the need for economic, social and legal challanges. In this paper, the major challenges of electronic money and payments instruments in the field of economic, social and legal chalanges will be review.One of these challenges is the impact of electronic money on monetary policy. It is Discussed that ,in the absence of correct planning, technological innovation could weaken the monetary policy tools. In many cases, electronic money that can be created by invalid enterprises and transmitted via the Internet, may increase the economic instability. in addition to the economic impact,  The new payment system have deep social and legal effects that requires social and legal measures