Klarna has announced that it has expanded its digital bank offering by rolling out peer-to-peer payments, further solidifying its position in the digital banking space.
Available in 13 European countries, the move comes as the next step in Klarna’s evolution as a digital bank. With this new capability, Klarna customers are set to be able to send money to friends and family directly from the Klarna app. This gives them the ability to optimise the fund transferring process, while also being protected by a regulated bank.
The rollout positions Klarna deeper into the everyday banking space, making the company a central hub for day-to-day spending and money management. The announcement follows the launch of the Klarna Balance accounts and the increased adoption of Klarna Card, which, according to company data, has over four million sign-ups four months after its introduction to the market.
How does it work?
When sending money, customers need to choose a recipient using a phone number, email address, QR code, or a saved contact. Following confirmation of the amount, Klarna conducts fraud and eligibility checks before proceeding with the payment.
Currently, transfers work between Klarna users; however, the company intends to scale to non-Klarna customers and cross-border payments in the upcoming period, enabling it to cover more everyday banking and money management needs.
Furthermore, even if at launch, Klarna’s peer-to-peer payments run on traditional banking rails, the company is focusing on exploring stablecoin-based options. Through this, it intends to further boost efficiency and reach, thus optimising its offering.
Sebastian Siemiatkowski, co-founder and CEO of Klarna, commented on the announcement, stating that by introducing peer-to-peer payments, the company seeks to remove the friction and fees usually associated with traditional banking. With the new payment solution, Klarna aims to simplify how users manage their payments, making it more efficient and cost-effective.
In addition to focusing on expanding its digital bank offering, the end of 2025 saw Klarna partnering with Coinbase, with the two planning to launch stablecoin-based funding as part of the former’s institutional financing activities. With this collaborative agreement, Klarna was set to be able to raise short-term capital denominated in USDC, leveraging Coinbase’s digital asset infrastructure. At that time, the company mentioned that the move sought to diversify funding sources rather than replace established mechanisms.
