Conflux Foundation commits $500M to fuel PayFi Web3 payments solution
The Conflux Foundation plans to invest $500 million to support the growth of PayFi, short for Pay Finance, a Web3 payments solution.
Conflux’s $500 million investment will come from its ecosystem fund and will go toward developing PayFi, a blockchain-based payments platform that aims to bring traditional finance services to the blockchain.
PayFi aims to create a “more integrated value network” by bringing financial products like credit cards, invoice financing and reverse factoring onto the blockchain, Conflux Foundation announced on Nov. 11.
The Conflux PayFi Stack. Source: Medium.com
The PayFi stack is built on the Conflux blockchain, a layer-1 network focused on stablecoin and payment infrastructure for consumer-grade payments.
Blockchain applications with intuitive user experiences could attract more mainstream cryptocurrency users, as the usability challenges of current decentralized finance (DeFi) applications are a major barrier for new crypto investors.
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PayFi aims to cater to consumer payments by introducing credit cards that offer users easy access to DeFi-generated future yields through a fully automated onchain process.
Users can use the onchain yield to pay for goods and services through the credit card without relying on other DeFi protocols or traditional banking infrastructure.
Payment infrastructure in the future. Source: Medium, Conflux Network
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The crypto industry needs applications with easier user experience to onboard the next billion mainstream crypto users, according to Chintan Turakhia, senior director of engineering at Coinbase.
The current user onboarding process is complicated and riddled with friction points, which is the main issue for mass crypto adoption, Turakhia told Cointelegraph exclusively at EthCC:
“If our goal is to bring in the next billion users — and let’s start with just 100 million — we have to take all those friction points out.”
Some of the most pressing friction points include setting up a wallet with a complicated seed phase, paying transaction fees and buying blockchain-native tokens to transact on a network.
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