In-depth Analysis of Emerging Application Scenarios in the PayFi Field

In the previous text, we conducted a comprehensive analysis of the overall ecological landscape of the PayFi sector. This article will focus on several emerging application scenarios with significant development potential, including AI payments, small payments aimed at consumers, and innovative deposit and withdrawal solutions.

AI Payment: A New Paradigm Integrating Artificial Intelligence with Cryptocurrency Payments

The combination of AI and cryptocurrency payments holds tremendous market potential. This innovative model is expected to disrupt multiple fields such as data annotation, model training, and content creation. As AI assistants gradually integrate into daily life, the application of cryptocurrency payments will further expand into mainstream industries. In the future, AI assistants may even help users complete everyday tasks such as ordering food, shopping, and traveling.

Market Opportunities

• The revenue sources of the AI payment platform are diversified, including transaction fees, subscription fees, and various small payment systems for AI services.
• Stablecoin settlement has significant advantages in cross-border remittances, enabling 24/7 real-time settlement. Compared to traditional banking systems, it is not only faster but also has lower fees, making it very suitable for AI-driven small transaction needs.

Case Study: Skyfire

Skyfire is committed to building a powerful and scalable payment infrastructure for AI agents and users, which consists of the following core components:

1. Payment and Wallet Infrastructure:

   • Skyfire wallet service provides a funding channel for global transactions.
   • Payment-as-Auth enables real-time settlement of USDC
   • Support AI agents for high-frequency, low-value permissionless micropayments

2. Open Protocol (AI Market): Integrating various AI-related products and services, AI agents can connect to required resources through this protocol and complete payments using the Skyfire API.

3. Identity and Verification Layer: Assign identity (KYA) to each AI agent, enabling transaction history tracking, compliance accountability, and identity verification.

4. Integration Tools: Supports over 160 large language models (LLMs), provides dataset, high-quality content, and API access to web services, and offers integration tools for developers.

Key Success Factors

• Network Effect: Skyfire, as an integrated platform for the AI market and payment layer, creates a bilateral flywheel effect by attracting users and service providers.
• Compliance and Security: Verifiable Identity (KYA) and transaction history ensure transaction security, effectively preventing fraudulent activities.
• A robust ecosystem: Collaborations with LLM providers, data markets, and enterprise-level AI companies have strengthened its ecological position.

Consumer-Oriented Micropayments: Reshaping Transaction Models

Consumer micropayment models based on cryptographic technology, such as innovative platforms like Moonshot and Sidekick, demonstrate the immense potential of global instant settlement and decentralized protocols. This model is expected to disrupt industries such as cryptocurrency trading, content creation, gaming, and live streaming, particularly in emerging markets.

Market Opportunities

• The target market covers daily consumption scenarios such as ride-hailing, gaming, digital media, live streaming, content creation, and online communities.
• Revenue sources include trading fees, content platform collaboration profits, and DeFi integration income.

Case Study: Moonshot

Moonshot is a trading platform that supports users to buy and sell Meme tokens through methods like Apple Pay, with key features including:

• Self-custody wallet: Users can create an account using email and password, and the platform uses Multi-Party Computation (MPC) technology to generate an embedded wallet.
• Flexible fee structure: Fees are charged in tiers based on the transaction amount, and network fees are paid by the platform.
• Referral Program: Users can earn rewards by referring others to use the platform.

Key Success Factors

1. The user-friendly interface design simplifies the trading process of Meme tokens.
2. The ability to quickly launch popular tokens helps to seize market trends.
3. An efficient recommendation mechanism drives user growth and community interaction
4. Strict compliance and security measures enhance user trust.

Case Study: Sidekick

Sidekick is a Web3 gaming companion platform and payment gateway, where streamers can receive small payments and tips via cryptocurrency.

Key Success Factors

• Solve the payment difficulties for creators: provide instant, low-cost blockchain payments to address the high commission and long payment cycle issues of traditional platforms.
• Promote income equality: Eliminate traditional platform commissions and ensure a more reasonable distribution of income
• Achieving scalability through Web3 infrastructure: Utilizing decentralized protocols to ensure the security and reliability of payment gateways.
• Leading the future of the creator economy: Taking a leading position in the decentralized, cryptocurrency-native monetization space.

Innovative Deposit and Withdrawal Solutions: Building Bridges in the Crypto World

Efficient deposit and withdrawal solutions are crucial for the widespread adoption of cryptocurrencies, providing a bridge for users and institutions to connect fiat currency with crypto assets.

Market Opportunities

• Growing demand for stablecoins: Increasing usage in remittances, DeFi, and cross-border trade.
• Layer-2 and multi-chain expansion: reduce costs, increase transaction speed, and expand user reach.
• Improve accessibility: Simplify the onboarding process for cryptocurrencies to attract new users.
• Emerging market potential: penetrating financial infrastructure weak areas through mobile products

Case Study: Fiat24

Fiat24 is a new type of Web3 bank that offers users a seamless, zero-cost conversion experience between fiat and cryptocurrency. Its main features include:

• Tokenized Deposits: Presenting fiat currency in the form of ERC-20 tokens on the Ethereum blockchain.
• NFT-based account access: Users receive a unique NFT as a digital identity for account access.
• Visa debit card integration: supports global spending, can be recharged via dApp
• Compliance Assurance: Regulated by the Swiss Financial Market Supervisory Authority (FINMA) and regularly subjected to audits.

Key Success Factors

• Powerful network effects: Establishing tokenized deposits as a universal standard to build a self-reinforcing ecosystem.
• Regulatory advantages and cost leadership: Obtained a Swiss banking license, offering competitive pricing.
• The integration of fiat currency and cryptocurrency: a seamless connection between traditional finance and decentralized finance
• Scalable partnerships: Providing integrated Web3 banking solutions that are easy to integrate with major wallets and exchanges.

Conclusion

Blockchain technology is redefining global payment systems. From AI-driven microtransactions to consumer micropayments, and to fiat-cryptocurrency conversion solutions, PayFi innovations are addressing the long-standing efficiency issues of traditional finance while opening up vast market opportunities. The integration of cryptocurrencies, stablecoins, and decentralized finance is paving the way for scalable, secure, and cost-effective solutions.

Despite still facing challenges in regulation and infrastructure, PayFi is leading us towards a more inclusive, transparent, and efficient financial future. The development prospects in this field are promising and are expected to have a profound impact on the global financial system.