Klarna has launched instant peer-to-peer payments across 13 European countries, reinforcing its push to become a full-service digital banking alternative.
Klarna has launched a new feature that enables users to send money instantly to one another directly through its mobile app, a move designed to simplify everyday transactions such as splitting bills or giving gifts and to strengthen its position as an alternative to traditional banks. The introduction of real-time peer-to-peer transfers represents a further expansion of Klarna’s banking services, adding to its growing range of tools aimed at making personal finance easier to manage in a single platform.
The new payment function is currently available across thirteen European markets, including Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Poland, Portugal, Spain, Sweden and the United Kingdom. Users can transfer funds by selecting someone from their contacts, entering a phone number or email address, scanning a QR code, or choosing from previously saved recipients.
Before a payment is finalised, Klarna applies a series of security checks to identify potential fraud risks and verify that the transaction meets eligibility requirements, helping to ensure that transfers remain secure. For now, the service is limited to payments between existing Klarna users, although the company has said it intends to widen access in the near future.
The peer-to-peer payments capability is fully integrated with Klarna’s wider product ecosystem, including Klarna Balance, which allows users to store funds, and the Klarna Card, which has surpassed four million users within four months of its launch. Over the same period, the company’s deposit base has risen sharply, increasing from about $9.5 billion to $14 billion since August 2024.
By adding person-to-person payments, Klarna is seeking to address common frustrations associated with conventional banking, such as slow processes and extra fees, offering what it says is a faster and more affordable way to move small amounts of money. Looking ahead, the fintech plans to expand the service to allow transfers to people without Klarna accounts and to support international payments across borders.
Klarna is also exploring the potential use of stablecoins, which are digital currencies linked to stable underlying assets, as a way to improve transaction speed, global reach and overall efficiency. Such developments could reshape how users interact with digital money, reducing dependence on legacy banking infrastructure and enabling quicker, more seamless cross-border transfers.
Sebastian Siemiatkowski, Klarna’s co-founder and chief executive, said the new feature reflects growing consumer dissatisfaction with the costs and inefficiencies of traditional banking. He pointed to the rapid uptake of the Klarna Card as evidence of demand for simpler financial solutions and said the addition of instant payments allows users to manage more of their everyday finances within one app, making transactions faster, easier and cheaper.
The latest update underlines Klarna’s broader ambition to evolve into a fully fledged digital bank focused on intuitive user experiences. As financial services increasingly move towards integrated, app-based models, innovations like this may help attract customers looking to move away from the complexity of traditional finance.
link