Introduction to PayFi

Payment Financing is the trade of time value of money, essentially enabling businesses and individuals to either defer payments or receive future funds immediately. Money today is simply more valuable than money tomorrow.

PayFi uses blockchains and stablecoins to drastically improve the efficiency of existing payment financing solutions and enables new experiences that are not possible in the Web2 world.

PayFi is set to transform the existing $30 trillion payment financing industry. Today, credit card issuers finance $16 trillion in merchant payments, and trade finance enables $10 trillion in business-to-business transactions. One in every six families depends on remittances—money sent back home across borders— and even that system depends on trillions of dollars in prefunding.

There are many new forms of payment financing innovations such as buy now pay later, growing rapidly. For credit cards, it takes days to settle with the merchants. With PayFi, it can settle multiple times a day, using any digital currency. For trade financing, PayFi can trade at a level of transparency that is impossible today and enables much better risk management. For cross-border payments, PayFi can completely eliminate pre-funding requirements, making it easier, faster, and cheaper to send money to anyone in the world.

PayFi can also enable payment use cases that either do not exist today or are impossible to achieve today. T+0 payment settlement has been a dream for businesses to receive funds on the same day as when the funds are sent out. This is impossible for the vast majority of today’s cross-border payments. PayFi is well-positioned to transform this critical element in global trading.

At Huma, we believe in 10 years, the vast majority of cross-border payments will advance to T+0 or T+1 from today’s T+3 or T+4, resulting in a massive transformation in global payments and commerce. Another new use case is DePIN financing. DePIN enables masses to collectively fund and own critical physical infrastructures such as AI infrastructure, energy infrastructure, network infrastructure, etc. PayFi can enable financing of promising projects, while securing payback channels to accelerate the build-out of promising DePIN initiatives.

PayFi achieves the transformations by providing immediate liquidity, removing the delays and complexities of traditional finance systems. It gives businesses and individuals control over when they pay and get paid, promoting financial freedom. It is a force to convert blockchain’s power into massive real-world impact.