PayFi (acronym for Payment Finance) is a concept given by Solana President Lily Liu. It refers to the application of blockchain technology in improving the current global payment infrastructure.
In application, it would seek to bridge the gap between traditional payment infrastructure (say Venmo or PayPal) and blockchain technology. As a result, it would implement, near instant settlements, quick cross border transfers, easy monetization of invoices, securing micro loans with RWA collaterals, enabling easy micropayments (AI services, subscriptions, etc.).
Owing to its widespread application and its potential to drive crypto adoption, PayFi could emerge as the top crypto trend by the end of 2025 and in early 2026.
Current Players in PayFi
The concept of PayFi was initially brought out by Solana President Lily Liu but similar work has been going on under various top blockchain projects like Shardeum and Stellar Network.
Solana
Solana brought the PayFi concept in late 2024 during the US elections. The concept did not get much attention due to the focus around Trump and wider market recovery.
Shardeum
Shardeum, a layer-1 chain has also used PayFi by mitigating the issues in current blockchains such as high fees, slower network speed, congestion, etc. Solving these issues
Stellar Network
Stellar (XLM) has also made serious inroads into PayFi network. Stellar is a payment-focused blockchain network similar to XRP but for the retail markets. XRP is more focused towards institutions.
