Klarna Expands Beyond BNPL With P2P Payments Launch in Europe

Klarna has taken another decisive step toward becoming a full-scale financial services provider with the launch of a peer-to-peer (P2P) payments service across Europe.

The buy now, pay later (BNPL) giant announced on Wednesday that the new feature is now live in 13 European countries, allowing users to send money directly to friends and family through the Klarna app. The move places Klarna in more direct competition with traditional banks and established P2P players such as Zelle, which is operated by bank-owned Early Warning Services in the United States.

According to Klarna, customers can use the service to split bills, send gifts, or transfer funds using a phone number, email address, or QR code. The feature is available to Klarna users who already have access to the company’s app-based account, which supports deposits and withdrawals.

While Klarna is best known for interest-free installment payments, the company has steadily expanded its offering in recent years. It now provides debit cards, deposit accounts, and interest-bearing loans — products traditionally associated with banks rather than fintech lenders.

Klarna CEO Sebastian Siemiatkowski framed the launch as a response to consumer frustration with incumbent banks. “Customers are sick of the friction and fees of traditional banking,” he said in a statement.

The new P2P payments service is currently available in Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, and the United Kingdom. A Klarna spokesperson confirmed the service launched on January 14, 2026.

Peer-to-peer payment services have faced increased scrutiny in recent years, particularly around fraud and scams. Klarna said it will conduct fraud and eligibility checks before allowing users to send money through the platform.

While Klarna acknowledged interest in expanding the service further, the company said there are no immediate plans to launch the P2P offering in the United States.

Source: Payments Dive