Author: Alice@ForesightVentures
In the previous article, we analyzed the overall ecosystem landscape of the PayFi track. This time, we will delve deeper into several highly promising new application scenarios: AI payments, consumer-oriented micropayments, and innovative deposit and withdrawal solutions.
(I) AI Payments
We firmly believe that the AI and crypto payment track has huge market potential. AI payments have the potential to disrupt multiple industries outside of traditional finance, such as data labeling, model training, and content creation. As AI agents become increasingly integrated into daily life, the application of crypto payments will also expand into mainstream industries, with AI assistants even being able to proactively order takeout, coordinate clothing and grocery purchases, and arrange transportation to meetings, etc.
Market Opportunities
- AI payment platform revenue sources: transaction fees, subscription fees, or small-amount payment systems for various AI services, all of which are revenue channels for AI payment platforms.
- Stablecoin settlement advantages: Stablecoin transactions can achieve 24/7 real-time settlement for cross-border remittances, which are not only faster but also have lower fees compared to traditional banking systems, perfectly suited to the needs of AI-driven micropayments.
Case: Skyfire
Skyfire's technology is dedicated to building a powerful and scalable payment infrastructure for AI agents and users, primarily consisting of the following key components:
Payment and Wallet Infrastructure:
Skyfire Wallet Service: Provides a channel for global transactions to deposit and withdraw funds.
Payment-as-Auth: Enables real-time settlement of USDC.
Micropayment Support: Facilitates high-frequency, low-value transactions by AI agents without the need for permission.
Open Protocol (AI Marketplace): Integrates all AI-related products and services, allowing AI agents to connect to the resources they need for their work through the Skyfire open protocol (marketplace) and pay for these services using the Skyfire API. Examples include decentralized computing power markets, decentralized data labeling markets, automated data sets, and AI model APIs.
Identity and Verification Layer: Assigns an identity (KYA) to each AI agent, providing identity verification for all agents, users, and enterprises using Skyfire products. KYA allows for tracking transaction history, ensuring compliance and accountability, and verifying the identity of each agent for every transaction to ensure security.
Integration Tools: Supports over 160 large language models (LLMs), provides API access to data sets, high-quality content, and web services, and offers tools for developers to easily integrate Skyfire into their systems.
Key Success Factors
AI Payment Layer Network Effects: Skyfire is a platform that integrates the AI marketplace and payment layer. On the one hand, by integrating various AI marketplaces and service providers, it attracts more users and AI agents to use its products; on the other hand, it also creates revenue for more Web2 and Web3 AI service providers (through stablecoin transactions, which significantly improve transfer efficiency and frequency), forming a two-sided flywheel effect.
Compliance and Security: Verifiable identity (KYA) and transaction history ensure the security of transactions, effectively preventing fraud, and the Payment-as-Auth system further enhances transaction trust.
Strong Community: Partnerships with LLM providers, data markets, and enterprise-level AI companies have consolidated its ecosystem. Currently, there are over 1,500 developers using Skyfire's tools and services.
(II) Consumer-Oriented Micropayments
Consumer-oriented crypto micropayments, combining innovative models like Moonshot (buying and selling Meme tokens with cryptocurrencies) and Sidekick (providing a Web3 payment gateway for live streamers), demonstrate the tremendous potential of global instant settlement and decentralized protocols. By reducing intermediaries and costs, this model has the potential to disrupt industries such as crypto trading, content creation, gaming, and live streaming, especially in emerging markets. The low commission rates, convenience of cross-border payments, and high penetration of mobile devices make cryptocurrencies an ideal solution.
Market Opportunities
Target Markets: Covering daily consumer transaction scenarios such as ride-hailing, gaming, digital media, live streaming, content creators, and online communities.
Revenue Sources: Transaction fees, revenue sharing with content platforms, and integration with decentralized finance (DeFi).
Case: Moonshot
Moonshot is a trading platform that allows users to buy and sell Meme tokens using methods like Apple Pay, with the following key features:
Self-Custodial Wallet: Users can create an account using an email and password (with Touch ID, Face ID, or password). Moonshot generates embedded wallets for supported blockchains through its multi-party computation (MPC) partner, Turnkey.com.
Fee Structure: Moonshot charges fees on transactions to cover management costs and ensure a smooth experience. Fees are tiered based on transaction amount, with the platform covering network fees to prioritize order processing. For example, transactions between $1 and $250 are charged a 2.5% fee, with a minimum of around $0.40; transactions over $250 are charged a 1% fee.
Referral Program: Users can earn rewards by referring friends to the platform. Both the referrer and the referred user receive rewards after completing identity verification.
Key Success Factors
User-Friendly Interface Design: Moonshot's interface is clean and intuitive, simplifying the process of buying and selling Meme cryptocurrencies. By supporting payment methods like Apple Pay, credit cards, and PayPal, the platform lowers the entry barrier for new users.
Speed of Token Listings: The platform's ability to quickly list popular Meme tokens is crucial. For example, the listing of MOODENG significantly increased user engagement and trading volume, demonstrating Moonshot's ability to capitalize on market trends.
Efficient Referral Mechanism: Moonshot's referral system, which rewards both the referrer and the new user, drives user growth, enhances community interaction, and accelerates platform adoption.
Compliance and Security Assurance: The platform strictly adheres to local regulations and has implemented robust security measures, such as identity verification and transaction processing in collaboration with MoonPay. This compliance and security build-up strengthens user trust and lays the foundation for sustainable development.
Case: Sidekick
Sidekick is a Web3 game companion platform and payment gateway that allows streamers to receive micropayments and tips in Crypto.
Key Success Factors
- Solving the creator payment dilemma: Traditional streaming platforms (such as YouTube, Twitch, and TikTok) have high commission rates of up to 30%, long payment cycles (often taking weeks), and geographical restrictions. Sidekick provides instant, low-cost Bit blockchain payments, effectively solving these issues. This is a major pain point for global content creators, especially those in regions underserved by traditional payment systems.
- Low-cost transactions drive income fairness: Sidekick enables mid-tier influencers to earn higher incomes from transactions. By eliminating the commissions of Web2 platforms, Sidekick ensures a more fair and reasonable income distribution. This is highly attractive for gig economy workers seeking better revenue sharing and faster payouts.
- Scalability through Web3 infrastructure: Sidekick adopts Web3 protocols to ensure its payment gateway is decentralized, scalable, and secure. The transparency and security of Bit blockchain provides a foundation of trust for creators and users, while also enabling Sidekick to handle transactions ranging from small amounts to millions per day.
- The future of the creator economy: As the creator economy evolves, platforms like Sidekick are taking the lead in decentralization and crypto-native monetization. With the increasing adoption of Non-Fungible Tokens (NFTs), digital assets, and Web3 applications, Sidekick can serve as a comprehensive payment solution. Streamers and creators can not only earn income from traditional live streaming, but also monetize their influence through token-based content and fan tokens.
（Three） Innovative Fiat-Crypto Conversion Solutions
Efficient fiat-crypto conversion solutions play a crucial role in the mass adoption of cryptocurrencies. These solutions build bridges for fiat-dependent users and institutions to access crypto assets or participate in Decentralized Finance (DeFi).
Market Opportunities
- Rising demand for stablecoins: The increasing use of stablecoins (such as USDC, USDT, DAI) in remittances, DeFi, and cross-border trade has created a demand for fiat-to-stablecoin conversion. After the U.S. election, stablecoin-related regulations are expected to be more comprehensive, providing greater development opportunities once compliance is achieved.
- Layer-2 and multi-chain expansion: Fiat-crypto conversion platforms can integrate with Layer-2 networks (such as Optimism, Arbitrum) and cross-chain support (such as Solana, Avalanche) to reduce costs, increase transaction speeds, and enable users to access a diverse crypto ecosystem.
- Enhancing accessibility: Embedded payment solutions and wallet-less access methods (via email or mobile) simplify the onboarding process for crypto newcomers, attracting new users and driving broader adoption.
- Emerging market potential: Fiat-crypto conversion platforms often leverage mobile-first products to penetrate underserved financial infrastructure in emerging markets, while also providing enterprise-grade tools and collaborating with partners like Visa and Stripe to access institutional and traditional payment networks.
Case Study: Fiat24
Fiat24 is a Web3 neobank that provides a seamless, zero-cost conversion experience between fiat and Bit currencies. Its key product features include:
- Tokenized deposits: Fiat24 represents fiat currencies (such as CHF, EUR, USD, GBP) as ERC-20 Tokens on the Ethereum Bit blockchain. Each Token is backed 1:1 by the custodied fiat, ensuring stability and credibility. This system enables instant, transparent transactions and seamless integration with DeFi services.
- NFT-based account access: Users receive a unique Non-Fungible Token (NFT) as their digital identity to access their Fiat24 account, replacing traditional username and password. This enhances security and user control, as the NFT is stored in the user's Arbitrum (Ethereum) wallet and used to access Fiat24 services.
- Visa debit card integration: Fiat24 provides Visa debit cards linked to user accounts, enabling global spending at over 40 million merchant locations. Users can top up their cards through Fiat24's decentralized application (dApp) and view balances in their preferred currency.
- Regulatory compliance: Fiat24 is operated by SR Saphirstein AG and regulated by the Swiss Financial Market Supervisory Authority (FINMA). The platform adheres to Anti-Money Laundering (AML) requirements and undergoes regular financial and regulatory audits by Swiss Grant Thornton, ensuring user compliance and fund security.
Key Success Factors of Fiat24
- Powerful network effects: Fiat24's success hinges on establishing its tokenized deposits as a universal standard. This foundational role promotes interoperability, building a self-reinforcing ecosystem that bridges Traditional Finance (TradFi) and Decentralized Finance (DeFi).
- Regulatory advantage and cost leadership: Leveraging its Swiss banking license, Fiat24 gains the backing of the traditional financial system and access to the SWIFT/SEPA networks. This regulatory status enables it to offer highly competitive pricing to partners and users, becoming a trusted and efficient Web3 banking solution.
- Fiat-Bit currency integration: Through tokenized bank deposits (e.g., USD24), instant fiat-Bit conversion, and synchronized on-chain/off-chain ledgers, Fiat24 seamlessly integrates traditional finance and decentralized finance, creating a smooth and user-friendly ecosystem.
- Scalable partner ecosystem: Fiat24 provides an integrated Web3 banking solution that is easily integrated with leading wallets and exchanges, expanding its reach through revenue-sharing models and driving network growth to enhance the platform's utility.
Conclusion
We believe Bit blockchain has immense potential in redefining the global payment system. From AI-driven micropayments to consumer microtransactions to fiat-Bit conversion solutions, PayFi innovations have solved long-standing inefficiencies in traditional finance, opening up vast market opportunities as the convergence of Bit currencies, stablecoins, and Decentralized Finance paves the way for scalable, secure, and cost-effective solutions.
PayFi is a bridge leading us towards a more inclusive, transparent, and efficient financial future. While challenges around regulation and infrastructure remain, the prospects are bright, and the future is promising.
