Klarna Launches P2P Payments: From Buy Now Pay Later to Full-Stack Neobank

Klarna Launches P2P Payments: From Buy Now Pay Later to Full-Stack Neobank

Klarna just took another major step away from its BNPL roots—and toward becoming a complete digital bank.

This morning, the Swedish fintech giant launched instant peer-to-peer payments across 13 European countries, enabling customers to send money to friends and family directly from the Klarna app. What might seem like a straightforward feature addition is actually a strategic milestone in Klarna's broader transformation into an everyday banking platform.

What Launched

Users can now send money through the Klarna app using:

• Phone numbers
• Email addresses
• QR codes
• Saved contacts

Transfers are instant between Klarna users, with real-time fraud and eligibility checks running in the background. At launch, the feature is available in Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, and the UK.

The roadmap includes expansion to non-Klarna recipients and cross-border payments—essential capabilities for any platform aspiring to replace traditional banking apps.

The Banking Flywheel Is Spinning

This P2P launch doesn't exist in isolation. Klarna has been systematically building out core banking infrastructure:

Klarna Balance (launched August 2024) has seen deposits nearly double from $9.5bn to $14bn over the past year. That's real money sitting in Klarna accounts—not just payment volume flowing through.

Klarna Card hit 4 million sign-ups in its first four months, with card payments now representing 15% of total transaction volume. That's a meaningful shift from deferred payments to immediate spending.

Savings accounts offer competitive interest rates, turning Klarna Balance into an active savings vehicle.

BNPL credit provides the flexible financing that built Klarna's brand, now integrated alongside traditional banking features.

Peer-to-peer payments close a critical gap. You can now save money, spend it via card, finance purchases through BNPL, and send cash to friends—basically the full spectrum of everyday money management.

Warum das wichtig ist

CEO Sebastian Siemiatkowski framed the launch around customer frustration: "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."

But the strategic rationale runs deeper. Every P2P transfer is:

1. Another touchpoint that brings users back to the app
2. More transaction data to improve credit models and fraud detection
3. Stronger network effects as more users join to transact with friends
4. Higher switching costs once Klarna becomes the primary money management hub

Traditional banks have struggled to monetize P2P payments directly (see: Zelle's zero fees in the US). But for Klarna, P2P serves a different purpose—it's the connective tissue that transforms discrete BNPL transactions into continuous banking engagement.

The Stablecoin Signal

Perhaps most intriguing: Klarna confirmed it's exploring stablecoin-based payment rails to "further enhance speed, reach, and efficiency."

While P2P currently runs on traditional banking infrastructure, this signals where Klarna sees the future. Stablecoin rails could enable:

• True instant settlement (not just instant user experience with backend delays)
• Lower cross-border costs than SWIFT or card networks
• 24/7 operation without banking hours constraints
• Potential integration with crypto-native services

Companies like Bridge, Lightspark, and others are already building this infrastructure. Klarna joining that conversation suggests the BNPL-to-bank transformation might eventually include crypto-native payment rails underneath a consumer-friendly interface.

What's Still Missing

To become a true full-stack neobank competing directly with Revolut and N26, Klarna still needs:

• Bill payment capabilities (utilities, rent, subscriptions)
• Direct deposit for salary payments
• Multi-currency accounts for travelers and cross-border users
• Investment products (stocks, ETFs, crypto trading)

Some of these features (like direct deposit) might already be technically possible but not heavily promoted. Others require additional product development or regulatory approvals in certain markets.

Das größere Bild

Klarna isn't alone in this BNPL-to-banking evolution. Affirm in the US has added savings accounts. PayPal has systematically built out banking features. Even Apple has expanded beyond Apple Pay into savings and buy now pay later.

The pattern is clear: payments companies are becoming banks, and banks are becoming payments companies. The question is no longer whether Klarna is a neobank—it's which type of neobank it will become.

Will it compete head-on with Revolut and N26 for primary account status? Or carve out a hybrid position where BNPL remains core but banking features provide stickiness and data?

Based on today's launch and the traction of recent products, Klarna seems to be betting on the former. The peer-to-peer piece was the missing link. Now it's just a matter of filling in the remaining gaps—and potentially leapfrogging traditional banking infrastructure entirely with stablecoin rails.

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Klarna's P2P payments are now available in Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, and the United Kingdom.