DeFi Payments

Definition ∞ DeFi Payments are financial transactions executed directly on a decentralized blockchain network without reliance on traditional intermediaries like banks or payment processors. These payments leverage smart contracts to facilitate peer-to-peer value transfers, often using stablecoins or other digital assets. They offer features such as lower transaction fees, faster settlement times, and increased censorship resistance compared to conventional payment systems. The architecture promotes financial inclusion and operational transparency.
Context ∞ The advancement of DeFi Payments is a key area of innovation within the digital asset space, challenging traditional financial infrastructures. News reports frequently cover new protocols and platforms aiming to improve scalability, user experience, and regulatory compliance for decentralized payment solutions. The primary discussion revolves around achieving widespread adoption while addressing concerns related to transaction speed, cost, and regulatory clarity.