PayFi vs DeFi: Understanding the Difference

馃挕 PayFi: More than DeFi?

By Huma Finance
Oct 17, 2024, 6:15 PM
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At the recent #PayFiSummit, Cali Liu, President of the Solana Foundation, clarified the distinction between PayFi and DeFi.​ The term PayFi, coined by Liu, represents a new paradigm in financial technology.​

  • PayFi focuses on everyday payment solutions
  • DeFi primarily deals with broader financial services

Edwin Aoki, CTO of Blockchain, Crypto & Digital Currencies at PayPal, highlighted the outdated nature of current value transfer systems.​ He emphasized how PYUSD and Solana are poised to revolutionize payments through:

  • Instant transfers
  • Low transaction costs
  • Enhanced transparency

These innovations aim to modernize the 50-year-old financial infrastructure currently in use.​

Sources
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