Revolutionizing the Payment Ecosystem: Huma Finance and Its 'PayFi' Network

Erbil Karaman, co-founder of Huma Finance, recently shared groundbreaking insights into the company’s vision as the world’s first PayFi network during an exclusive interview with Block Media on September 23. Huma Finance aims to transform financial systems by working with prominent global payment institutions to offer real-time liquidity and innovative income opportunities. This ambitious endeavor seeks to reshape the payment ecosystem with cutting-edge blockchain technology.

Through a partnership with the Solana Foundation, Huma Finance has introduced the concept of "PayFi," a rapidly emerging financial ecosystem attracting major players like Visa, Mastercard, PayPal, and Circle. Karaman elaborated on PayFi’s origins, its stablecoin-based liquidity model, applications in corporate trade financing and supply chain management, and its expansion plans, particularly in South Korea’s advanced digital payment landscape.

The Genesis of Huma Finance and PayFi

Huma Finance defines itself as a pioneering PayFi network that bridges payment institutions with blockchain-backed solutions. According to Karaman, "Huma provides payment institutions with instant, accessible liquidity while unlocking new on-chain income opportunities."

The company’s journey began with Karaman’s earlier venture, Earning, a fintech platform aimed at creating a real-time payment system for consumers. Facing challenges in scalability and efficiency, the team turned to blockchain technology and stablecoins, ultimately leading to the development of their proprietary PayFi infrastructure. This foundational shift marked the beginning of their mission to redefine financial systems using decentralized technology.

The Revolutionary Concept of PayFi

The term “PayFi” was conceived by Huma Finance in collaboration with Solana to address inefficiencies within traditional financial systems. While blockchain was initially envisioned for peer-to-peer (P2P) payments, this potential remained largely unfulfilled due to technological and regulatory hurdles. The emergence of stablecoins, along with advancements in compliance and active participation from global payment corporations, provided the necessary conditions for innovation.

Karaman explained, "PayFi is a unique ecosystem that doesn’t fully align with traditional finance or decentralized finance (DeFi). It operates in its own paradigm, bridging the gap between legacy systems and decentralized models." Since launching with the Solana Foundation, PayFi has experienced impressive growth and is poised to expand further in the coming years, particularly as adoption increases among institutional and retail sectors.

Liquidity: The Backbone of PayFi

Liquidity plays a critical role in PayFi’s ecosystem, enabling seamless operations for payment institutions and retail users alike. Initially, institutions served as the primary liquidity providers, generating returns of 10–15% by leveraging their assets. As the network evolved, opportunities in the retail sector took center stage.

Solana’s robust retail user base, combined with a growing number of individual stablecoin holders, allowed Huma Finance to broaden its operational scope. Karaman explained, "We built a permissionless layer on top of our institutional infrastructure, issuing liquid tokens that empower anyone holding just $1 of USDC to earn double-digit yields."

To further extend access to these opportunities, Huma is integrating major exchange wallets, intending to simplify participation for millions of users worldwide.

Practical Applications: Amazon, Visa, and Beyond

The PayFi network’s real-world use cases demonstrate its transformative potential. For instance, Amazon faces costly and time-intensive processes when conducting cross-border transfers. Sellers based in Asia often endure delays caused by currency conversions and multi-account wire transfers. Huma’s PayFi platform streamlines these transactions, enabling same-day settlements using stablecoin liquidity. Karaman emphasized, "This not only benefits sellers but substantially enhances Amazon’s competitive edge."

In the financial services sector, PayFi has been instrumental in solving liquidity challenges for card issuers operating under Visa and Mastercard networks. By providing stablecoin liquidity, Huma ensures seamless settlements between issuers and merchants, reducing inefficiencies and driving operational improvements.

Revolutionizing Trade Finance and Supply Chains

PayFi is also transforming payment structures within global corporations like Hyundai, Samsung, and LG, which depend heavily on intricate supply chain networks. Traditional systems often complicate settlements due to lengthy processes. Huma introduces liquidity via stablecoins, enabling companies to settle payments efficiently and repay the amount in either fiat currency or stablecoins within days.

Karaman noted that Huma charges a low daily fee of 0.06–0.1%, attracting contributors while remaining cost-effective for clients—a crucial balance for sustainable network growth.

Global Expansion and Vision

Huma Finance’s impact extends far beyond any single market. Collaborating with industry leaders such as Circle, Visa, Solana, and Stellar, its global footprint spans Europe, the U.S., Latin America, the Middle East, and Asia. Karaman emphasized their focus on solving international financial challenges, particularly in cross-border trade, treasury services, and global settlements.

While domestic payment systems vary by region, Huma’s overarching goal remains unified: addressing inefficiencies in traditional systems through blockchain-powered innovation.

South Korea: A Strategic Frontier

Karaman views South Korea as a pivotal market, given its advanced digital payment landscape and high crypto adoption rates. The introduction of stablecoin regulations in the region could accelerate Huma’s expansion plans. "We’re actively pursuing partnerships in South Korea," Karaman revealed, identifying the nation as a potential leader in stablecoin-driven financial innovation.

The groundwork for widespread stablecoin adoption in South Korea, supported by its tech-savvy consumers and businesses, positions the country as a critical hub for blockchain-based payment solutions.

Roadmap for the Next Two Years

Karaman outlined three key objectives for Huma Finance’s development over the next two years:

1. B2B Integration: Enhancing collaborations with enterprise networks, including card issuers, trade finance systems, supply chain networks, and traditional payment platforms. "Our goal is to create solutions that require no blockchain expertise to operate," he said.

2. Institutional Partnerships: Expanding relationships with global financial institutions to unlock income opportunities that seamlessly merge traditional finance (TradFi) with decentralized finance (DeFi).

3. Open Ecosystem Development: Advancing open-source decentralized solutions that enable rapid global innovation and interoperability.

A Call to Action for South Korea

Karaman concluded with a compelling message for South Korea’s policymakers and financial leaders. He highlighted the country’s leadership in digital payments and cryptocurrency adoption, coupled with its potential to drive stablecoin-related innovations.

"This is a critical moment," he noted, underscoring the increasing global trend toward stablecoin standardization led by the U.S. Karaman urged South Korea—alongside key partners like Japan, Hong Kong, and Singapore—to embrace stablecoin advancements to sustain its competitive edge in global trade. "Huma Finance is ready to support South Korea’s journey toward becoming a global leader in this space," he affirmed.