rewrite this title Klarna Launches P2P Payments in Europe – Finovate

Klarna has launched peer-to-peer payments in 13 European markets, enabling users to send money, split bills, and gift cash directly within the Klarna app.

The move shifts Klarna beyond buy-now, pay-later toward becoming an everyday digital hub for spending and money management.

While initially limited to Klarna users sending domestic payments to other Klarna users, the company plans to expand P2P payments to non-users, cross-border transactions, and potentially stablecoin-based options in the future.

Digital payments app Klarna is taking a step to become more like a bank. The Sweden-based company has launched peer-to-peer (P2P) payment capabilities this week, making it possible for users to send funds to family and friends.

The new P2P capabilities will initially be available in 13 European countries: Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, and the UK. Customers in these nations will be able to use the Klarna app to split bills, gift cash, and send funds under the protection of a regulated bank.

Klarna, which originally launched as a buy-now, pay-later tool in 2005, views this launch as the next step in its evolution as an everyday digital hub for spending and money management.

“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 Co-founder and CEO 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.”

At launch, P2P payments will only work between Klarna users sending domestic payments. To send funds, users need a recipient’s phone number or email address, or they can use a QR code or saved contact. When the sender confirms the amount, Klarna checks the transaction details for fraud. The company plans to expand the capabilities to non-Klarna users and to cross-border payments in the future.

This is among the first major announcements Klarna has made since going public in September 2025. And while it comes two months after the company debuted the KlarnaUSD, its stablecoin, the company said that its P2P payments will initially run over traditional payment rails, though it is exploring stablecoin-based options.

The launch of the new P2P payment capabilities marks Klarna’s first move in 2026 after a busy 2025, when the company saw the deposits in its Klarna Balance account double from $9.5 billion in 2024 to $14 billion in 2025. Additionally, Klarna’s debit card saw more than four million sign-ups just four months after launching.

Klarna made no mention of plans to launch P2P payment capabilities in the US, where it would face entrenched competitors such as Cash App, Venmo, and Zelle. However, adding P2P payments to an already robust app deepens Klarna’s role in users’ daily financial lives, which would reinforce its ambition to move beyond buy-now, pay-later and closer to a full-service digital banking experience.

Photo by cottonbro studio

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