Ship or Die at Accelerate 2025: What Is PayFi? (Richard Liu - Huma Finance)

In a groundbreaking presentation at Accelerate 2025, Richard Liu of Huma Finance unveils PayFi, a revolutionary blockchain-based payment system that promises to transform the way money moves around the world. This innovative technology aims to make global transactions instant, free, and accessible to all, potentially reshaping the landscape of international finance.

Summary

Richard Liu, representing Huma Finance, introduces PayFi as a transformative force in the world of global payments. He begins by highlighting the current inefficiencies in the financial system, where money - unlike other essential elements such as air, light, and information - does not flow freely or instantly.

Liu points out that while we live in a world where information travels at the speed of light, money often lags behind, taking days or even months to move between parties. This delay causes significant problems for businesses, especially small suppliers who face cash flow pressures due to delayed payments.

The presentation then delves into the concept of PayFi, describing it as a movement leveraging blockchain technologies to revolutionize global payments. Liu introduces the PayFi stack, an open framework developed in collaboration with the Solana Foundation, Circle, and other partners. This stack aims to provide a flexible, efficient solution for accelerating money movement worldwide.

Finally, Liu paints a vision of a future where PayFi enables T+0 settlement to become mainstream, freeing payment companies from pre-funding requirements and democratizing access to financial opportunities for individuals worldwide.

Key Points:

The Current State of Global Payments

Richard Liu begins by highlighting the inefficiencies in the current global payment system. While most essential elements in our lives - air, light, water, electricity, and even information - flow freely and instantly, money remains a critical exception. This discrepancy creates numerous problems in the modern economy.

For instance, Liu points out that a seller on platforms like eBay might have to wait several days to receive payment for their goods, putting them under cash pressure. Similarly, suppliers in Asia sending products to companies like Amazon often face 90-day payment terms, forcing them to cover material and labor costs long before receiving payment. These delays in money movement create significant burdens for businesses, especially smaller ones with limited cash reserves.

The Vision of PayFi

PayFi is presented as a solution to these inefficiencies. Liu describes it as a movement leveraging blockchain technologies to accelerate and revolutionize global payments. The goal is to create a world where money can move freely and quickly, much like information does today.

Liu envisions a future where PayFi enables instant, free, and accessible money movement. This would alleviate the burdens on businesses, allowing them to operate more efficiently and reducing the economic drag caused by slow payment systems. The ultimate aim is to create a "better tomorrow" where the free flow of money matches the pace of our always-on world.

The PayFi Stack

A key component of the PayFi vision is the PayFi stack, an open framework developed by Huma Finance in collaboration with the Solana Foundation, Circle, and other partners. This stack defines how money movement can be revolutionized using blockchain technologies.

The PayFi stack is designed to be flexible and open, allowing users to choose different components at each layer. For the transaction layer, while any blockchain could potentially be used, Liu suggests that Solana is particularly well-suited due to its high throughput, low latency, and minimal transaction costs. For the currency layer, various stablecoins like USDC, USDT, or USDG could be utilized. The finance layer is also open, with Huma positioned as a front-runner but leaving room for other players to participate.

The Impact of PayFi

Liu predicts that PayFi will have a transformative effect on global finance. He suggests that within 5-10 years, T+0 settlement (same-day settlement) could become mainstream, dramatically accelerating the pace of global trade. This would free payment companies from pre-funding requirements, allowing them to operate more efficiently and potentially reducing costs for end-users.

Moreover, PayFi aims to democratize access to financial opportunities. Liu points out that currently, many financial products and services are only available to institutions, family offices, and large funds. With PayFi, he envisions a future where average individuals can participate in a wider range of financial opportunities, potentially earning better returns on their money than traditional bank deposits offer.

Facts + Figures

• PayFi aims to make money movement instant, free, and accessible globally
• The current global payment system often results in delays of several days to months for money transfers
• New York City is described as the single densest payment hub in the world
• The Federal Reserve Bank of New York acts as a settlement agency for USD across the entire world
• Most global payments currently settle in T+3 or T+4 (3-4 days after the transaction)
• PayFi aims to make T+0 (same-day) settlement mainstream within 5-10 years
• The PayFi stack is an open framework developed in collaboration with Solana Foundation, Circle, and other partners
• Solana is positioned as a preferred blockchain for PayFi due to its high throughput, low latency, and minimal costs
• PayFi could potentially free payment companies from pre-funding requirements
• The initiative aims to democratize access to financial opportunities for average individuals

Top quotes

1. "PayFi is freedom."
2. "Imagine tomorrow that money can move free fast. Either way, be a better tomorrow, right?"
3. "We set our mission to be, accelerate movement of money for the world that is always on."
4. "PayFi is a movement of leveraging blockchain technologies to accelerate, to revolutionize global payments."
5. "With PayFi, in five to ten years, we all see T plus zero becomes the main stream."
6. "PayFi is freedom. It's free all of us from the handicap of the players' outdated payment system."

Questions Answered

What is PayFi?

PayFi is a movement that leverages blockchain technologies to revolutionize global payments. It aims to make money movement instant, free, and accessible worldwide, addressing the inefficiencies in the current financial system where money transfers often face significant delays and costs. PayFi is built on an open stack that allows for flexibility in choosing different components, including the blockchain layer, currency layer, and finance layer.

Why is PayFi necessary?

PayFi addresses the critical issue of slow and costly money movement in the current financial system. While most essential elements in our lives (like air, water, and information) flow freely and instantly, money often lags behind. This causes problems for businesses, especially small suppliers who face cash flow pressures due to delayed payments. PayFi aims to create a world where money can move as freely and quickly as information, potentially transforming global trade and finance.

How does the PayFi stack work?

The PayFi stack is an open framework that defines how money movement can be revolutionized using blockchain technologies. It consists of multiple layers, including a transaction layer (where Solana is suggested as a preferred option due to its high throughput and low costs), a currency layer (which can use various stablecoins like USDC or USDT), and a finance layer. The stack is designed to be flexible, allowing users to choose different components at each layer to best suit their needs.

What impact could PayFi have on global finance?

PayFi has the potential to dramatically accelerate global payments. It aims to make T+0 (same-day) settlement mainstream within 5-10 years, compared to the current norm of T+3 or T+4. This could free payment companies from pre-funding requirements, allowing them to operate more efficiently. Additionally, PayFi aims to democratize access to financial opportunities, potentially allowing average individuals to participate in a wider range of financial products that are currently only available to large institutions.

How does PayFi relate to Solana?

While the PayFi stack is designed to be blockchain-agnostic, Solana is positioned as a preferred option for the transaction layer. This is due to Solana's high throughput, low latency, and minimal transaction costs, which align well with PayFi's goal of instant and free money movement. The PayFi stack was developed in collaboration with the Solana Foundation, among other partners, further strengthening the connection between PayFi and the Solana ecosystem.

Who is behind the development of PayFi?

PayFi is being developed by a coalition of organizations, with Huma Finance playing a leading role. The PayFi stack was published in collaboration with the Solana Foundation, Circle, and other partners. Richard Liu, representing Huma Finance, presented the concept at the Accelerate 2025 event. However, the initiative is designed to be open and inclusive, allowing various players to participate and contribute to the ecosystem.

How might PayFi benefit small businesses and suppliers?

PayFi could significantly benefit small businesses and suppliers by accelerating payment cycles. Currently, many suppliers face long payment terms (sometimes up to 90 days) which can create cash flow pressures. With PayFi's goal of instant money movement and T+0 settlement, these businesses could receive payments much more quickly, reducing their financial stress and potentially allowing them to operate more efficiently and grow more rapidly.

What role do stablecoins play in the PayFi ecosystem?

Stablecoins form a crucial part of the PayFi stack, specifically in the currency layer. The system is designed to be flexible, allowing the use of various stablecoins such as USDC, USDT, or USDG. This flexibility enables users to choose the most appropriate stablecoin for their needs, while still benefiting from the speed and efficiency of the PayFi system. The use of stablecoins also helps to mitigate the volatility often associated with cryptocurrencies, making PayFi more suitable for everyday financial transactions.