The news: Klarna launched peer-to-peer (P2P) payments for consumers in 13 European countries, per a press release.

Klarna users will be able to send payments directly from the Klarna app, identifying their recipient by phone number, email address, QR code, or saved contact. P2P will flow on traditional banking rails, but Klarna is also exploring stablecoin solutions.

How we got here: Klarna wants to become a super app. It launched cash-storing capabilities in August 2024 and the Klarna Card and mobile phone plans last year to be a one-stop shop for more of consumers’ financial needs. 

Reception to the card and balances has been warm: Klarna Balances now hold $15 billion in global deposits, per the press release, and the Klarna Card has crossed 4 million sign ups, accounting for 15% of all Klarna transactions globally. 

What’s next? P2P is likely coming stateside in the near future—Klarna has a history of piloting features in the EU before rolling them out in the US. This would bring Klarna into competition with major P2P players like Zelle, Cash App, Venmo, and PayPal.

Implications for payment providers: As Klarna tries to own more aspects of consumers’ financial lives within its ecosystem, legacy P2P players can bet that longtime customer payment behaviors will make switching P2P providers difficult. Adding rewards or incentives to build out that consumer behavior will be essential for adoption.