Conflux PayFi Stack: Pioneering the Future of Web3 Payments

Today, digital payments have become the core of the global economy. Conflux is breaking through the boundaries of existing payment systems with PayFi, which is based on blockchain technology. PayFi is poised to become a paradigmatic scenario in the consumer-grade application ecosystem of blockchain, further enhancing the operational efficiency of traditional financial markets.

Conflux’s PayFi narrative envisions a next-generation, blockchain-driven payment ecosystem. This system aims to enhance the time value of money (TVM) and introduce new layers of capital efficiency.

To support this vision, the Conflux Foundation is committing 500 million CFX from its ecosystem fund to fuel the growth of PayFi stack components. Keep reading to learn more.

What is PayFi?

PayFi, short for Pay Finance, is a response to the burgeoning demand in the Web3 payment market. It aims to create a robust financial ecosystem centered around innovative concepts such as Programmable Money, Real-time Finance, and Streaming Payments. By harnessing the power of blockchain technology, PayFi enables transactions that are not only efficient and cost-effective but also pave the way for new financial experiences and sophisticated financial products.

At its core, PayFi brings traditional financial models onto the blockchain — spanning from Credit Cards to Invoice Financing and Reverse Factoring — to create a more integrated value network. This transformation is essential for addressing the inefficiencies in legacy payment systems and aligning financial operations with real-time data.

Conflux PayFi Stack

As a leader in high-performance Layer1 blockchain, Conflux has been at the forefront of technological advancements, particularly in the development of Stablecoins. We are now expanding our focus to encompass a comprehensive Payments infrastructure and cultivate the PayFi ecosystem, aiming to become the blockchain of choice for consumer-grade Payments in the future.

The Conflux PayFi Stack

• Blockchain Settlement Layer: PayFi operates on a high-performance blockchain with robust security, an area where Conflux’s Layer1 excels. We are also implementing PayFi-oriented TPS Boost to enhance performance.
• Assets Settlement Layer: We are partnering with qualified issuers to explore the issuance of multiple assets, including offshore RMB, HKD, and USD, and to develop native features on stablecoins.
• PayFi and DeFi Protocol: By integrating decentralized financial services into everyday consumption, PayFi shifts from deposit for yields to Pay for goods or services, further activating DeFi and driving new growth incentives.
• Entry Layer: As the user interface, we will connect Consumers and Businesses through payment wallet apps and components, offering efficient and inclusive financial services.

Why PayFi?

The payment industry has evolved into one of the largest industries in the world, and although its system is inefficient, it still shows a growth trend. Global digital payment transactions are projected to reach $11.53 trillion in 2024 and $15.51 trillion by 2027. On the other hand, Traditional payment finance has reached a market size of $30 trillion.

In recent years, as blockchain technology has matured and cryptocurrency has gained popularity, stablecoins, and Web3 payments have been on the rise. Traditional financial companies like VISA, PayPal, and J.P. Morgan are increasingly exploring blockchain-based payments.

The stage is set, and we believe the future payment revolution is about to unfold.

Internet technology has made payments more convenient and efficient, while also enabling new financing methods based on online data. Blockchain technology will continue to make payments more convenient and efficient, while also enabling new financing methods through programmable money.

Use Cases of PayFi

• Consumer Payments (C2B): PayFi introduces a groundbreaking concept similar to credit cards, where users can use DeFi-generated future yields to pay for goods and services. This fully on-chain, automated process ensures that transactions are both seamless and efficient, without the reliance on traditional credit structures.
• Creator Monetization (B2C): Web3 has enabled a new wave of creator economy applications. PayFi allows creators to receive pre-financing for future streamed income, unlocking liquidity that traditional financial systems cannot easily provide. This model opens up new opportunities for freelancers and online creators.
• Supply Chain Financing (B2B): Supply chain companies often face liquidity challenges due to delayed payments. With PayFi, suppliers can sell their receivables and access liquidity instantly, bypassing the lengthy processes and stringent requirements of traditional finance.

Conflux’s Vision for the Future

Conflux is set to expand its payment solutions and PayFi ecosystem, building on our existing suite of Stablecoins, Payment Card, and BIM Wallet (previously BSIM Card). We envision a future where payments are instantaneous, programmable, and powered by blockchain technology. Our aim is to position Conflux as a leading technical solution in the payment sector.

To accelerate this vision, the Conflux Foundation is launching an incentive program to boost the PayFi ecosystem on Conflux. The Foundation will inject 500 million CFX from the ecosystem fund to fuel the growth of PayFi stack components. Stay tuned for more details on how to get involved.