Klarna, the global digital bank and flexible payments provider, has launched instant peer-to-peer (P2P) payments across 13 European markets, letting users send money to friends and family directly through the Klarna app. The feature aims to make transfers as seamless as handing someone cash—but with the safety of a regulated bank.
The move positions Klarna as more than just a payments provider, deepening its role as a full-service digital bank. It follows the successful rollout of Klarna Balance accounts and the Klarna Card, which amassed over 4 million sign-ups in just four months, highlighting strong consumer demand for simpler, fee-free banking alternatives.
“Customers are sick of the friction and fees of traditional banking, which is why millions signed up to Klarna Card within a few months of launch,” said Klarna CEO and co-founder Sebastian Siemiatkowski. “With peer-to-peer payments we’re making it even easier to manage all of your payments through Klarna, now including small transfers, making managing your money quicker, easier, and cheaper.”
Sending money is straightforward: users select a recipient via phone number, email, QR code, or saved contact, confirm the amount, and Klarna runs fraud and eligibility checks before processing. Initially, transfers are limited to Klarna users, but the company plans to expand to non-Klarna customers and cross-border payments, reinforcing its ambition to become a central hub for everyday banking and money management.
Klarna’s banking products have seen rapid growth over the past year. Since the launch of Klarna Balance in August 2024, global deposits have risen from $9.5 billion to $14 billion by September 2025. Klarna Card adoption is also accelerating, now accounting for 15% of total transaction volume, creating a self-reinforcing cycle of engagement and usage.
While current P2P payments operate on traditional banking rails, Klarna is exploring stablecoin integration to further improve transaction speed, reach, and efficiency, signaling a potential leap toward crypto-enabled consumer banking.
This launch reflects a broader trend in Europe, where digital banks and fintechs are increasingly eroding the dominance of traditional institutions by offering frictionless, low-cost alternatives for everyday money management. Klarna is clearly betting on becoming the go-to app for all things payments, from splitting bills to full-fledged digital banking.
