Klarna Launches Instant P2P Payments Across 13 European Countries

What Did Klarna Launch—and Where?

Klarna has rolled out instant peer-to-peer payments across 13 European countries, allowing users to send money directly to friends and family through its app. The feature supports everyday use cases such as splitting bills or sending small cash gifts, adding another core banking function to a platform best known for purchase now, pay later.

The rollout marks Klarna’s latest move beyond point-of-sale credit and into routine money movement. Transfers currently work between Klarna users, with recipients selected via phone number, email address, QR code, or saved contact. later than the sender confirms the amount, Klarna runs fraud and eligibility checks before releasing the payment.

At launch, the service relies on traditional banking rails. Klarna says it plans to extend transfers to non-Klarna users and introduce cross-border payments at a later stage, widening the scope beyond its existing customer base.

Investor Takeaway

Why Is Klarna Expanding Into Everyday Payments?

The move follows a series of steps that have reshaped Klarna’s product mix over the past year. The company introduced Klarna Balance accounts and saw rapid uptake of the Klarna Card, which it says reached more than four million sign-ups within four months of launch. Adding P2P payments fills a gap that kept users dependent on external bank apps for basic transfers.

Klarna’s chief executive Sebastian Siemiatkowski framed the launch as a response to dissatisfaction with legacy banking. “Customers are sick of the friction and fees of traditional banking,” he said, adding that peer-to-peer payments let users manage “small transfers” alongside other payments inside one app.

By handling spending, balances, cards, and now transfers, Klarna is building the components of a full consumer banking interface. The strategy mirrors a broader , where firms that began with niche products are layering services to keep users inside a single financial ecosystem.

Is Klarna Competing With Local P2P Networks?

The launch inevitably invites comparisons with established Nordic mobile-payment networks such as Swish in Sweden and Vipps in Norway. Siemiatkowski rejected the idea that Klarna is positioning itself as a direct rival, arguing that banks already support multiple transfer methods and that Klarna intends to support local systems rather than replace them.

In practical terms, Klarna’s P2P feature overlaps with these services at the user level, even if the company avoids framing it as head-to-head competition. For consumers, the distinction matters less than convenience: whether transfers can happen instantly, cheaply, and inside the app they already use for spending.

The company’s approach also reflects regulatory realities. By keeping transfers on existing banking rails at launch, Klarna avoids introducing new compliance complexity while it tests demand and usage patterns.

Investor Takeaway

Where Do Stablecoins Fit Into Klarna’s Plans?

Although the new P2P feature runs on conventional payment infrastructure, Klarna has confirmed it is exploring stablecoin-based options as an alternative transfer method. The company has previously said stablecoins could offer quicker settlement and broader reach, particularly for cross-border use.

In November, Klarna announced plans to issue a dollar-backed stablecoin on the Tempo blockchain, a network developed by Stripe and Paradigm. Separately, toward the end of 2025, Klarna disclosed a aimed at enabling stablecoin-denominated funding for parts of its institutional financing activities. At the time, the company said the move was meant to rather than replace existing channels.

Taken together, these initiatives suggest Klarna is keeping one foot in while testing how digital assets could lower costs or extend functionality over time. For now, stablecoins remain exploratory rather than core to consumer payments.

What Does This Mean for Klarna’s Banking Ambitions?

With P2P payments live in 13 markets, Klarna now covers several pillars of everyday finance: spending, balances, cards, and person-to-person transfers. That combination moves the firm closer to being a primary financial app rather than a checkout-focused credit provider.

The next phase will depend on execution. Expanding transfers beyond Klarna would raise both the utility and regulatory complexity of the service. How rapidly those features arrive will indicate how aggressively Klarna wants to challenge traditional banks for daily usage.