The digital payments landscape is about to get a major shake-up. Kraken, the cryptocurrency exchange giant, has just launched Krak—an ambitious all-in-one money app that's positioning itself as a direct challenger to established players like PayPal, Venmo, and Block's Cash App.
But unlike its competitors, Krak isn't just another digital wallet. It's a complete reimagining of how money should move in 2025, built entirely on cryptocurrency infrastructure.
Introducing @Krak. The money app for people who want more.
— Krak (@Krak) June 26, 2025
More ways to pay
More freedom to send
More opportunities to grow
More rewards and money in your pocket
Get Krak 👇https://t.co/iGnDkIQmVb pic.twitter.com/fwac24S2XR
The Problem with Today's Payment Apps
While PayPal, Venmo, and Cash App have made peer-to-peer payments more convenient, they're still fundamentally limited by the same outdated banking infrastructure that has plagued finance for decades. International transfers remain expensive and slow, fees eat into transactions, and billions of people worldwide remain excluded from the financial system entirely.
"You can send a message or a video anywhere in the world instantly, but sending $100 can still take days," explains Arjun Sethi, Kraken's co-CEO, in announcing the launch.
The numbers tell the story: International remittance fees often exceed 6%, with some corridors reaching double digits. Even domestic card transactions cost users 2-3% in fees. Meanwhile, 1.4 billion adults globally remain unbanked, unable to access basic financial services.
Krak's Crypto-Native Approach
Krak's solution is radical in its simplicity: rebuild payments from the ground up using blockchain technology instead of trying to patch the existing system.
The app offers several key advantages over traditional payment platforms:
Instant Global Transfers: Unlike PayPal's multi-day international transfers or Venmo's domestic-only focus, Krak enables instant money movement across 160+ countries using blockchain settlement.
Multi-Asset Support: While Cash App recently added Bitcoin support, Krak goes further by supporting 300+ assets—fiat currencies, cryptocurrencies, and stablecoins—all in one account.
Yield Generation: Users can earn up to 4.1% APR just by holding USDG stablecoins, with no minimum balance requirements. Crypto staking can yield up to 10%.
Simplified User Experience: Krak introduces "Kraktags"—payment handles that eliminate the need for complex wallet addresses or account numbers, making crypto transactions as simple as sending a text.
Direct Challenge to Payment Giants
Krak's feature set puts it in direct competition with the major payment platforms:
vs. PayPal: While PayPal offers international transfers, they're expensive and slow. Krak's blockchain infrastructure promises near-instant settlement at a fraction of the cost.
vs. Venmo: Venmo's social payment features are limited to the US market. Krak's global reach and crypto capabilities offer a more expansive alternative.
vs. Cash App: Though Cash App has embraced Bitcoin, Krak's multi-asset approach and yield generation features provide more comprehensive crypto integration.
The key differentiator is Krak's "permissionless" infrastructure. By building on public blockchains, the platform eliminates traditional banking intermediaries that add cost and friction to every transaction.
Beyond Payments: A Full Financial Stack
Krak's ambitions extend beyond simple peer-to-peer transfers. The roadmap includes:
- Physical and virtual debit cards for global spending
- Collateral-based lending against crypto holdings
- No-paperwork borrowing without traditional credit checks
- Cross-border investment opportunities
This positions Krak not just as a payment app, but as a comprehensive alternative to traditional banking—something PayPal and its competitors have struggled to achieve despite their size and resources.
The Timing Advantage
Krak's launch comes at a pivotal moment. Cryptocurrency adoption has reached mainstream levels, with stablecoins increasingly used for international transfers. Traditional payment companies are struggling to innovate within regulatory constraints, while crypto-native platforms can build more flexible solutions.
"People don't want more features. They want fewer problems," Sethi notes. "They want to send money, hold value, invest and borrow without being penalized at every step."
Challenges Ahead
Despite its technological advantages, Krak faces significant challenges in taking on established players. PayPal processes over $1.3 trillion in payment volume annually, while Venmo and Cash App each have tens of millions of active users. Building comparable network effects won't happen overnight.
Regulatory uncertainty around cryptocurrency also poses risks. While Krak's stablecoin approach may be more palatable to regulators than pure crypto solutions, the regulatory landscape remains complex and evolving.
The Bigger Picture
Krak represents more than just another payment app—it's a bet that the future of finance will be built on crypto infrastructure rather than traditional banking rails. If successful, it could force established players to accelerate their own blockchain adoption or risk being left behind.
For consumers, Krak offers something the current payment giants don't: a truly global, borderless financial experience with the potential for meaningful yield generation. Whether that's enough to overcome the network effects and brand recognition of PayPal, Venmo, and Cash App remains to be seen.
But one thing is clear: the digital payments wars just got a lot more interesting.
Krak is currently available for download, with physical card functionality and additional features rolling out in the coming months.