Complete Gate Post tasks to upgrade your rank

Credit Ranking

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/image/article/1740036166newhotspot.jpeg)
## [TL；DR]: 
Against the backdrop of an overall market correction, the PayFi sector has performed relatively strongly, attracting a large amount of capital attention, with a market cap of over $2 billion, accounting for 5.2% of the total <a href="/price" target="_blank" class="blog_inner_link">crypto market</a> cap.

Innovative projects, including AI payment, micropayment, deposit and withdrawal solutions, and supply chain finance, have emerged, injecting strong momentum into the PayFi sector, such as Gate Pay's diversified payment solutions, Skyfire's AI payment layer, and Huma Finance's supply chain finance.

PayFi faces challenges such as low user awareness, uncertain regulatory policies and high technical barriers, but with technological advancement and growing market demand, PayFi is expected to become the core infrastructure of a trillion-dollar market, which may be the best time for investors to make a layout.

## Introduction
Since the beginning of February, the crypto market has been in a correction and volatility trend. Still, the PayFi sector has risen against the trend, attracting a lot of capital with its unique payment and financial service integration model.

At the forefront of blockchain technology innovation, PayFi not only carries technological innovations in crypto payments but also shows great potential in combination with DeFi, RWA, AI, etc., and is gradually becoming the next growth point of the market.

## The Market Generally Fell Back, But PayFi Rose Against the Trend
Recently, the overall sentiment in the crypto market has been relatively cold, and the prices of major mainstream cryptocurrencies have generally fallen back, and the market sentiment is relatively depressed. However, in this wave of general decline, the PayFi sector has performed relatively strongly, attracting a lot of attention from funds.
 ![](https://gimg2.gateimg.com/image/article/17400364171.jpeg)
Source: sosovalue 
 
According to SoSo Value and CoinGecko data, the market cap of PayFi-related tokens (such as stablecoins and payment protocol tokens) exceeds $2 billion, accounting for 5.2% of the entire market. Among them, Ripple (<a href="/price/xrp-xrp" target="_blank" class="blog_inner_link">XRP</a>), <a href="/price/telcoin-tel" target="_blank" class="blog_inner_link">Telcoin</a> (TEL), Verge (XVG), and others led the gains slightly, becoming one of the few areas to achieve net capital inflows.
![](https://gimg2.gateimg.com/image/article/17400364422.jpeg)
Source: SoSo Value

Here is a brief introduction to PayFi. PayFi, which stands for Payment and Finance Integration, is an innovative application model that combines payment functions with financial services based on blockchain and smart contract technology. It not only covers traditional payment functions, but also covers financial investment, asset management, credit assessment, and other fields, providing users with a one-stop financial service experience.

It should be noted that although high-fee cross-border payments that support stablecoins, such as PayPal, avoid some clearing links, they still rely on the traditional SWIFT system, fundamentally different from PayFi we are discussing here.
![](https://gimg2.gateimg.com/image/article/17400364673.jpeg)
Source: Odaily

The development of PayFi can be traced back to the early stages of blockchain technology. With the birth of cryptocurrencies such as <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> and the continuous maturity of blockchain technology, some blockchain projects, such as bitPay, began to try to develop blockchain-based payment systems. Still, due to technical limitations and low market awareness, these projects did not achieve much success.
![](https://gimg2.gateimg.com/image/article/17400365004.jpeg)
Source: bitpay
 
However, with the continuous advancement of blockchain technology and the improvement of market awareness, the PayFi field represented by Ripple (XRP) has gradually become popular. More and more AI, RWA, DeFi, and Wallet protocols have begun to enter the PayFi field and launched a series of safe and efficient payment and financial service products, making the PayFi sector one of the important growth points in the future crypto market.
 
## Gate Pay's Diversified Payment Solutions, from Payment Tools to Financial Ecosystem
The PayFi sector has taken over AI, RWA, Meme, etc., to become the new ecosystem in this round of bull market. Especially with the launch of Bitcoin spot ETF and Trump's crypto-friendly policy, the integration of crypto payments and the real world has accelerated, and many blockchain projects have launched payment and financial service products with their own characteristics.
![](https://gimg2.gateimg.com/image/article/17400365285.jpeg)
Source: Foresight Ventures

Take Gate Pay as an example. This project is a <a href="/web3" target="_blank" class="blog_inner_link">Web3</a> payment solution created by Gate.io. Through Gate Pay, users can spend more than 300 major cryptocurrencies, just like using traditional currencies, meeting the needs of merchants and individual users for Web3 payment scenarios. Gate Pay supports merchants in distributing funds to multiple wallet addresses simultaneously, which is very suitable for large-scale transactions or batch payments.
 ![](https://gimg2.gateimg.com/image/article/17400365546.jpeg)
Source: Gate.io
 
In addition to leading projects such as Gate Pay in terms of deposit and withdrawal facilities for payment consumption, the PayFi sector has also seen the emergence of the following scenario use cases in the following sub-sectors.

-AI Payment: Skyfire builds a payment layer for AI Agents to support high-frequency, small-value transactions. For example, AI assistants can automatically call Skyfire APIs to complete real-time USDC settlements for services such as ordering food and taking taxis.

-Reward payment: Sidekick’s handling fee is reduced to 1%, and rewards are credited to the account in real time.

-Supply Chain Finance: Huma Finance tokenizes accounts receivable, and suppliers can obtain instant financing with on-chain credit. It cooperates with Walmart Supply Chain to shorten the payment period from 90 days to 24 hours.
According to the Atradius report, 55% of companies in the United States receive overdue invoice payments, and 9% face bad debts. Huma has tried to introduce a decentralized and automated accounts receivable financing method to reduce delays, increase fees and other issues.
 ![](https://gimg2.gateimg.com/image/article/17400365907.jpeg)
Source: Huma Finance
 
-Stablecoin payment: Agora launched the stablecoin AUSD, which is fully collateralized by the U.S. Treasury bonds. It obtained a FINMA license and can circulate in 180 countries and regions. It has recently been connected to a pilot with Alipay and others to support offline merchant scan code payment.
 
## PayFi Opens the Last Stop of the Global Payment Network
It is not difficult to see from the above that in this round of bull market dominated by the integration of crypto technology in the real world, the PayFi sector has shown a relatively strong trend, especially the emergence of innovative projects such as AI payment, micropayment, deposit and withdrawal solutions, and supply chain finance. It has not only injected strong momentum into the PayFi sector, but also brought more possibilities for the business boundaries and product innovation of the entire crypto market.

Global payment revenue is expected to reach $3.3 trillion by 2031, but high fees, slow settlement times, and inefficiencies constrain legacy systems. PayFi solutions address these challenges, reducing cross-border fees by up to 90% and accelerating settlement times to seconds.
 ![](https://gimg2.gateimg.com/image/article/17400366218.jpeg)
Source: CoinGecko
 
However, it should be emphasized that although PayFi aims to become a connector between traditional finance and the crypto world, it still needs to overcome the following challenges:

Low user awareness: Many Web2 users and merchants are still unfamiliar with PayFi. According to Visa’s latest survey, more than 60% of small and medium-sized enterprises are still skeptical about stablecoin payments. Therefore, popularizing this cutting-edge technology solution still requires a lot of time and cost for user market education.

Regulatory policy uncertainty: Although Bitcoin has begun to be recognized worldwide, the taxation and reserve auditing standards for stablecoins vary from country to country/region, resulting in the lack of such regulation being both a development opportunity and a compliance risk.

High technical threshold: High technical thresholds and low penetration of mobile networks also limit the popularity of PayFi and restrict the implementation of PayFi. Despite this, we have also seen some new trends, such as USDC issuer Circle and digital payment provider PayPal taking the lead in establishing the "Global Stablecoin Alliance" (GSA) to unify technical specifications.

In my opinion, PayFi is not only a technological revolution, but also a practice of financial democratization. Its essence is to compete for the pricing power of legal currency payment channels. The key to breaking away from the competition with traditional payments lies in meeting regulatory requirements, reducing transaction and user cognitive costs, and improving capital efficiency.

As a16z partner Chris Dixon said: "The explosion of blockchain payments is not a question of ‘if,’ but a question of ‘when.’" With the integrated application of technologies such as multi-model AI and privacy computing, PayFi projects represented by Gate Pay are expected to cover 1 billion users by 2030 and become the core infrastructure of a trillion-level market. For investors, now may be the best time to lay out the PayFi track - not only to pay attention to technology leaders, but also to have insight into those long-termists who quietly build ecosystem connectors.


<div class="blog-details-info">
<div>Author:**Charle Y.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions. All investments carry inherent risks; prudent decision-making is essential.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>


简体中文

English

Tiếng Việt

Español

Русский язык

Français

ภาษาไทย

日本語

Indonesia

Deutsch

عربي

Português (Portugal]

Português (Brasil]

繁體中文

Українська

As the PayFi field gradually stands out, leading projects such as Gate Pay have launched diversified payment solutions to meet Web3 payment needs.

福利中心

铭文导航-铭文Launchpad

铭文-铭文导航

铭文-web3startup

新币挖矿

小红花-Exchange-Startup

交易-创新交易

交易-盘前交易

打新

小红花-Learn & Explore-博客

小红花-Learn & Explore-快讯

币圈-币圈-未来事件

小红花-Learn & Explore-聊天室

小红花-Learn & Explore-直播

小红花-Learn & Explore-动态

年度账单

币圈

Gate OTC

芝麻金融-更多-财富管理

机构-APIs

机构-大宗交易服务

机构-经纪商项目

全球做市商计划

机构-托管和资产管理

机构借贷

机构-做市商项目

小红花-Promotions-机构和VIP服务

量化基金

机构-基础架构

机构-交易

机构-金融

结构化产品

机构-主页

衍生品-统一账户

芝麻金融-更多-抵押借币

vip服务

机构

策略跟单

现货跟单

合约跟单

跟单

量化策略-探索

量化策略-进阶

量化策略-基础

机器人广场

创建机器人

探索机器人

杠杆网格

无限网格

期现套利

组合指标策略

智能调仓

现货马丁格尔

合约网格

现货网格

交易机器人

芝麻金融-更多-ETH2.0挖矿

芝麻金融-更多-法币理财

USDE挖矿

链上赚币

芝麻金融-理财-双币宝

芝麻金融-理财-定期理财(屯币)

芝麻金融-理财-结构性理财

芝麻金融-理财-理财宝

芝麻金融-理财-余币宝

GT挖矿

芝麻金融-更多

芝麻金融-理财

赚币

模拟交易

衍生品-实盘跟单

衍生品-期权

衍生品-交割合约

衍生品-永续合约

衍生品-合约中心

合约入门

合约活动

衍生品

交易-量化策略

交易-杠杆ETF

交易-杠杆交易

交易-闪兑

交易-现货交易

交易

行情

买币-gateCard

卖币

买币-快捷交易

买币

买币-paywith

法币定投

小红花-推广

新手指南

活动中心

小红花-Learn & Explore-学院

任务广场

小红花-Exchange-最新公告

小红花-Exchange-帮助中心

小红花-Exchange-交易所

gate商店

小红花-Promotions-推荐官计划

小红花-Promotions-邀请计划

小红花-promotions-代理商

cextg小程序

储备金

合作伙伴

小红花

web3

With Leading The Recovery And Rally, What Are The New Highlights Of The PayFi Sector?