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PayFi, short for Payment Financing, integrates payments with onchain financing and blockchain technology to enable the free flow of value onchain. By building on the foundation of Web3 payments with Real-World Assets and 

, PayFi unlocks new and affordable financing opportunities.


PayFi helps businesses unlock liquidity and streamline payment flows. By 

 like accounts receivables or treasuries, future cash flows can be turned into immediate, usable funds that can be transferred or settled in real time. Liquidity providers fund these tokenized assets, offering yield-bearing returns that are often more sustainable than traditional DeFi.

PayFi is starting to have a transformative impact on businesses and individuals worldwide. From enhancing trade efficiency to inventory financing and B2B settlement, it opens doors to improved access to liquidity, sustainable yields, and scalability.

What is PayFi?

The PayFi Ecosystem streamlines global payments through instant settlements, stablecoins, and crypto-to-fiat conversion.

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PayFi ecosystem analysis

PayFi connects businesses to liquidity pools, enabling them to both secure capital using tokenized assets and diversify their lending base - all without the usual barriers.

Enhanced Liquidity

PayFi allows for real-time, onchain settlement of payments, enabling same-day fund availability and improved cash flow.  

Near Instant Settlement

By removing intermediaries, PayFi cuts down on transaction costs and delays, allowing businesses to improve operational efficiency and free up capital. 

Capital Efficiency

PayFi transactions are recorded on an immutable blockchain, enabling transparency and trust, reducing fraud risks, and increasing accountability for payments.

Transparency

Replacing fiat with yield-bearing stablecoins or tokenized assets for PayFi flows opens up new opportunities for capital appreciation. Businesses can earn predictable returns on idle or operational funds while maintaining liquidity for operational needs.

Capital Appreciation

Liquidity providers can earn sustainable yields from interest paid by borrowers for working capital – returns that are backed by real business operations rather than speculative trading.


Sustainable

What are the benefits of PayFi?

The Stellar network is the backbone of PayFi use cases — fast, scalable, and affordable. Stellar’s smart contract platform, 

, is purpose-built to handle complex financial applications, enabling a wide range of DeFi applications, including PayFi, on the network.

Highly efficient transaction capabilities built on Stellar’s speed, affordability, reliability and access. This is the backbone of the Stellar network, offering a highly efficient transaction layer. Stellar is built for speed, affordability, and reliability, allowing for unparalleled throughput and near-instant transaction finality. The Stellar Disbursement Platform (SDP) demonstrates how this robust infrastructure can effortlessly handle billions of payments, setting a benchmark in the industry. 

Stellar Network

Integrated compliance solutions ensure adherence to AML and KYC regulations, fraud detection best practices, and privacy protections. Collaborations with industry leaders like Elliptic and Chainalysis enable real-time transaction monitoring while maintaining user accessibility.

Built to ensure adherence to regulations, privacy protection, and fraud detection. Compliance is crucial in any financial system. Assurance solutions are integrated into the Stellar network to ensure adherence to AML and KYC regulations, fraud detection practices, and privacy protections. By collaborating with industry leaders like Elliptic and Chainalysis, Stellar enables real-time transaction monitoring while maintaining user accessibility. 

Compliance Layer

Anchors connect the Stellar network to traditional banking rails so that currencies from around the world can interoperate on a single, seamless platform. It includes trusted on and off-ramps that support fiat to digital asset conversion.

A network of proven and trusted on/off-ramp partners to facilitate payments around the world. This currency layer connects global fiat currencies with stablecoins (like USDC) and regional fiat-backed tokens (like EURC). The Anchor Network facilitates cash-in and cash-out processes by linking local banking systems, digital wallets, and money service businesses, bridging the gap between traditional finance and blockchain. It serves as a foundation for inclusive financial services worldwide. 

Anchor Network

Stellar is built for asset issuance, trusted by institutions like Franklin Templeton, 

, and Circle. Assets like USDC and BENJI power PayFi use cases like supply chain financing and collateralization.

Support for digital assets like: USDC, EURC, BENJI, and more. Stellar supports tokenized assets such as: USDC, EURC, BENJI and more. These assets can be used to enable seamless conversions between stablecoins and local fiat-backed tokens, allowing businesses and users to send one currency and receive another instantly and affordably.

Currency Layer

Stellar provides flexible custody options, including self-custody and institutional-grade solutions like FireBlocks and Zodia Custody.

Stellar has institutional grade custody solutions and self-custody options to support payment needs. Security is paramount for managing digital assets. Stellar was designed to provide institutional-grade custody solutions while also supporting self-custody options. Features like multi-signature wallets and advanced control mechanisms, alongside partnerships with providers like Fireblocks, ensure that assets are protected while empowering payment-related innovations. Whether for businesses or personal users, Stellar seamlessly combines security with usability. 

Custody Layer

Protocols like Huma leverage the network to provide on-demand payment financing for small businesses, reducing traditional barriers to capital. With the support of Soroban, liquidity providers can unlock new revenue streams, like yield.

Solutions that facilitate real-world asset financing without traditional barriers or friction points.  Success in payments often relies on access to capital. Liquidity offers integrated financing solutions that ensure businesses can quickly find affordable capital. By connecting with payment-focused protocols like Huma and utilizing deep liquidity pools on Stellar, this layer facilitates real-world asset financing, helping drive cross-border trade and commerce. 

Liquidity Solutions

The global Stellar community drives PayFi innovation. Builders like Huma and Arf have created user-friendly applications that improve access to payment financing on Stellar.

We foster and support real-world applications with partnerships, grants and solutions to enhance the practice use of payments and PayFi. Finally, we have the Ecosystem and Innovation layer, which brings blockchain payments to life through real-world applications. Stellar supports developers and businesses in creating scalable, user-friendly financial tools, from cross-border payment platforms like Arf to innovative credit card solutions like Raincard. This layer enhances the practical use of PayFi. 

Global Ecosystem

How does Stellar support PayFi?

The Stellar ecosystem provides a powerful and adaptable foundation for PayFi, enabling fast, secure, and compliant financial solutions. Whether you’re a developer, business, or individual user, understanding these components can help you leverage the full potential of innovative financial products and services powered by Stellar. Explore more and join us in building the future of payments!

Build the future of financial access on an unmatched network of real-world utility and scalable decentralized finance.

Where DeFi Meets the Real World

Explore projects building and developing on the Stellar network.

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PayFi on Stellar, blockchain-powered payments to enable near instant settlements, RWA, Tokenization and DeFi yields.

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PayFi, short for Payment Finance, integrates payments with on-chain financing and blockchain technology to enable the free flow of value on-chain. By building on the foundation of Web3 payments with Real-World Assets and 

, PayFi unlocks new and affordable financing opportunities.

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