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Key Takeaways PayFi, the fusion of blockchain innovation and traditional finance, marks the next phase of financial evolution.
The future of tokenized payments lies in balancing the speed, programmability and global reach of crypto with the compliance, user trust and intuitive interfaces of established financial systems.
To stay ahead of this shift, you must build with compliance in mind, focus on user trust and experience and choose infrastructure that bridges both worlds.
Decentralized finance began with the bold idea that money could move as freely as information. By proving markets could function on shared infrastructure, DeFi drew billions in capital and talent, opening a new frontier for financial innovation.
As DeFi matured, it became clear that scaling required the infrastructure, safeguards and regulatory frameworks that underpin traditional finance. PayFi, short for Payment Finance, represents this evolution. It combines the programmability of blockchain with the trust and oversight of regulated systems, connecting innovation with compliance to bring blockchain payments into mainstream finance.
We’re already seeing this shift in the real world. Ecommerce platforms like Shopify support crypto payments at checkout, several neobanks are built on blockchains, and a growing number of credit and debit cards enable purchases directly from digital asset wallets.
For entrepreneurs, payment providers and financial executives, understanding this convergence is no longer optional. It will define the next decade of financial innovation.
Related: What It Will Actually Take to Bridge the Gap Between DeFi and Traditional Finance
The shift from DeFi to PayFi
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