Huma Finance publishes a comprehensive overview of PayFi (Payment Finance), a new frontier in real-world assets that combines stablecoins with financing mechanisms to enable scalable, compliant payment solutions. The article introduces the PayFi Stack—a framework with six layers (Transaction, Currency, Custody, Financing, Compliance, Application)—and highlights Stellar's role alongside Solana in providing high-throughput, low-cost transaction infrastructure for payments.
This article from Huma Finance explores PayFi, a term coined by Solana Foundation President Lily Liu, as the next evolution of blockchain payments. It argues that while Bitcoin and early stablecoins advanced payments, true adoption requires financing mechanisms—similar to how credit cards and trade finance drove traditional payment adoption. The article details the PayFi Stack, a six-layer framework for building compliant payment financing solutions. Stellar is specifically highlighted in the Transaction Layer for its focus on payments from inception, including tools like the Stellar Disbursement Platform. The article showcases real-world PayFi applications (Arf, Rain, BSOS, Zeebu) and explains how PayFi can unlock trillions in payment volume while providing sustainable, risk-adjusted yields. It concludes by announcing PayFi X (regular X Spaces) and PayFi Summit events to foster community growth.
