PayFi Revolution: 5 Major Web3 Payment Projects That Will Disrupt Traditional Finance

Over the past decade, cryptocurrencies have experienced rapid development, evolving from a niche technological experiment to a mainstream financial tool. Web3 payment systems, based on blockchain technology, ensure transparency, security, and immutability of transactions. These systems are increasingly integrated into e-commerce platforms, point-of-sale systems, and peer-to-peer payment applications, making the use of cryptocurrencies in daily life more convenient. As of 2023, the Web3 payment market is valued at $1.2 billion, with a projected compound annual growth rate of over 15% from 2024 to 2032. Web3 payments are expected to become a crucial pillar of the digital economy, bringing new opportunities and challenges to the global financial ecosystem, just like traditional payment systems.

 

This section will introduce some interesting or lesser-known innovations in the payment sector, excluding crypto cards and currency conversion features.

 

Karrier One (Payments x DePIN)

The combination of payments and DePIN has reasonable applications in telecommunications networks. Karrier One is a decentralized network at the operator level, integrating payment and DePIN functionalities. The Karrier One network consists of three modules: telecommunications, blockchain, and the Karrier Numbering System (KNS). They collaborate with global telecommunications providers to offer seamless communication coverage worldwide. The network is managed by the Karrier DAO, where token holders can participate in governance decisions. Through KNS, users can obtain a Web3 wallet directly linked to their phone number. This integration allows users to engage in DeFi activities, send and receive cryptocurrencies, and achieve smooth payment processes, effectively combining PayFi and DePIN. With 7.1 billion mobile phone users globally, this presents immense growth potential for Web3 telecommunications networks.

 

Huma Finance

Huma Finance is an income-based lending protocol. It allows borrowers to collateralize future income for loans by matching them with global on-chain investors. The protocol features common credit facilities and includes decentralized signal processors and assessment agents, which are critical infrastructures for integrating income sources, conducting credit assessments, and managing ongoing risks. As of August 23, 2024, Huma has raised nearly $900 million, with $883 million successfully repaid, resulting in a current credit default rate of 0%.

 

Sphere Pay

Sphere is a payment API designed for digital currencies. By providing a one-stop payment experience, Sphere connects ordinary users with stablecoins, accelerating the development of Web3 payment systems. Sphere offers customizable or preset front-end and user experiences for merchants, enabling them to flexibly apply Sphere Pay. Additionally, Sphere provides various pricing models to meet merchants' differing needs for products or services. Sphere does not charge software usage fees but instead collects a fixed fee of 0.3% from each transaction, making the software free for all users. This makes Sphere an ideal choice for small businesses, especially those with lower transaction volumes or startup costs.

 

Loopcrypto.xyz

Loop is a Web3 payment infrastructure that helps companies arrange or automate collections and payments. With automatic payment features, Loop enhances operational efficiency and reduces customer churn rates. The platform supports all ERC-20 tokens and offers settlement options in either cryptocurrencies or fiat, reducing the complexity for businesses in currency conversion. Loop provides plug-and-play software, minimizing resistance for businesses during implementation. It also integrates with top platforms like Stripe, Zapier, and Xero, allowing business owners to seamlessly incorporate Loop into their existing financial management systems. Therefore, businesses using traditional invoicing systems can easily add cryptocurrency as an additional payment option for customers without undergoing extensive system overhauls.

 

Orbita

Orbita is a decentralized L1 payment protocol being developed on Cosmos, currently still under development with no testnet launched yet. Since the team may still be writing documentation and white papers, this information has not yet been made public. Orbita's core functionalities will include direct irreversible payments, reversible payments, decentralized subscriptions, and e-commerce integration. As an L1 protocol focused on payments, this represents a new direction in the payment industry and may bring about interesting changes.

 

This article is sourced from Foresightnews:

https://foresightnews.pro/article/detail/68295

Sincerely,

AIC Team

October 7, 2024