Can I create a multi-step form that will trigger an email notification for each step?

I am thinking of creating a multi step form, where the first part of the form can be submitted which forms stage one, and second part is where they will make payment and the third part is they will take a survey. In each step of the registration, is it possible an email alert can be sent to notify them of the next stage?

Yes, that's doable if you will indeed set up 3 different forms. Each form you build has its own set of EMAIL NOTIFICATIONS that you can setup. In addition, you can also create AUTORESPONDERS (the emails your respondents receive after submission) to guide your users to the next form.

For example, on the FIRST FORM, you can include the link to the SECOND FORM in your Autoresponder email template (and so on).

Related guide: How-to-Edit-the-Email-Template-for-Notifications-and-Autoresponders