In the world of traditional finance, credit has always been the core of capital flow. However, many people with stable incomes lack physical assets, which has long excluded them from financial services. The PayFi network of Huma Finance was born to break this limitation. It transforms the future income streams of individuals or enterprises into quantifiable, lendable, and circulating credit assets through a dual-drive model of 'payment + financing', thus redefining the value logic of financial services.
In traditional banking systems, credit assessment often relies on physical assets such as real estate, deposits, or stocks. Even if a person has a stable monthly income, it is difficult to obtain a loan without collateral. Similarly, small and micro enterprises or freelancers, despite having stable business income, may be denied financial support due to a lack of collateralizable assets. This model leads to a concentration of financial resources among high-asset groups, while low-asset groups have to rely on high-interest informal lending, forming a vicious cycle of 'the less money, the harder it is to borrow'.
The crypto lending market seems to have broken through the limitations of physical collateral, but new constraints are also evident: mainstream platforms still require users to use digital assets as collateral, and borrowing limits are restricted and accompanied by liquidation risks. In reality, an employee receiving a stablecoin income every month still cannot obtain an unsecured loan solely based on their salary. This indicates that neither traditional finance nor crypto finance has effectively activated the potential of 'future income streams'.
The innovation of PayFi lies in the combination of three core mechanisms: credit quantification, risk control, and value circulation. First, the credit quantification mechanism builds a dynamic credit scoring system through the integration of global salary data, invoice records, cross-border remittance flows, and on-chain behavior data, achieving precise assessment of future income. For example, an Indian cross-border worker who remits $500 monthly to their family with a good record for 18 consecutive months can obtain an unsecured loan limit of $350-$450.
Second, the risk control mechanism breaks the traditional reliance on collateral and establishes a 'cash flow closed loop'. The user's borrowed funds are directly tied to their future income, and smart contracts automatically deduct repayments. In cases of income anomalies, alerts and liquidity protection are triggered, and a decentralized risk pool reduces the overall impact of single income fluctuations. As of now, the PayFi network has an overdue rate of only 0.8%, far lower than traditional consumer credit.
Finally, the value circulation mechanism maximizes the utility of income streams within the ecosystem. Users accumulate credit as they receive income, and borrowed funds can be directly used for payments without additional operations, allowing credit records to be reused across different scenarios. For instance, a Malaysian employee working in Singapore can accumulate credit through salary loans, and when applying for an advance on cross-border remittances later, they can enjoy lower fees and a higher limit.
PayFi's implementation scenarios cover individuals, small and micro enterprises, and cross-border workers. Cross-border workers can make low-fee remittances and access their income in advance in emergencies; small and micro enterprises can obtain funds through order invoices or revenue streams; young professionals and freelancers can also finance on demand. In this way, PayFi not only solves the financing difficulties of the 'income without assets' group but also makes financial services truly accessible, becoming a new engine for inclusive finance.
With the launch of Huma 2.0, the PST token realizes the combination of credit assets and ecosystem protocols, collaborating with more than 50 global salary platforms, remittance agencies, and corporate systems, further expanding the ecological influence of PayFi. In the future, as more types of future income streams connect to the network, cash flow credit will become a universal standard in the global financial market, and finance will no longer be just an asset game, but will serve the lives and careers of everyone.