The PayFi report explores how the payment finance model addresses inefficiencies in traditional finance, and transforms finance management.
VC firm Foresight Ventures released its latest PayFi report together with Bitget Wallet, unveiling how blockchain technology, crypto wallets, and the PayFi model are addressing inefficiencies in traditional finance.
Key highlights of the report include:
- High Costs of Traditional Finance: Cross-border payments incur fees of 6%-8%, with Africa facing up to 8.2%, and settlement times often extending over days, as per World Bank data. Globally, 1.7 billion people remain unbanked, excluded from essential financial services.
- Blockchain’s Transformative Impact: By eliminating intermediaries, blockchain reduces transaction costs to an average of ~$2 (OECD: 60-80% lower than traditional methods) and enhances transparency through its public ledger. Ethereum Layer-2s further minimise fees, making them ideal for small payments.
- Emerging Markets See Surge in Crypto Payments: The Bitget Wallet Onchain Report revealed that 46% of users prefer crypto payments for their speed — 52% in Africa and 51% in Southeast Asia — where traditional banking systems lag. Additionally, 41% value global accessibility, particularly in North America and Oceania.
- PayFi Bridges On-Chain Profits and Real-World Spending: PayFi integrates DeFi profits (5%-8% annualised yields) with everyday spending through smart contracts, offering instant settlement and low costs. Stablecoins like USDT and USDC enable users to hold dollars and bypass local currency restrictions.
- Evolution of Crypto Wallets: Once simple storage tools (e.g., MetaMask), Web3 accounts like Bitget Wallet now combine trading, profit generation, and payments. They reduce cross-border transfer fees by 50%-80% and simplify global remittances.
Traditional finance leaves funds idle, with savings rates below 1% in developed nations, and excludes billions from wealth-building opportunities. Blockchain and PayFi democratise access, enabling the unbanked — 70% of populations in Morocco and Vietnam — to access dollar assets and high-yield tools. Millennials and Gen Z are leading adoption, prioritizing borderless convenience, while privacy concerns drive uptake in the Middle East (38%) and Western Europe (35%).
Forest Bai, Co-Founder of Foresight Ventures, said: “This report underscores our commitment to supporting innovations that bridge the gap between blockchain technology and real-world financial needs. PayFi and crypto wallets are not just transforming finance — they are creating a new era of financial inclusion and efficiency.”
Read the full report here.
