Klarna Steps Up Its Aspirations as a Neobank With Peer-to-Peer Payments
Klarna, the Swedish buy now/pay later provider, has made a significant move towards becoming a neobank by launching peer-to-peer payments across Europe. The move came following its successful IPO and is viewed as part of Klarna’s strategic diversification of its product mix. While primarily known in the U.S. as a buy now/pay later lender, the Swedish firm is now expanding geographically and exploring ways to compete with traditional banking institutions.
Klarna’s Expansion into Peer-to-Peer Payments
Klarna’s new service for peer-to-peer payments has been launched in 13 countries across Europe, including Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, and the U.K. Klarna users can now send money to other customers using a variety of methods, such as a phone number, email address, QR code, or saved contact. The company plans to extend this service soon to non-Klarna customers and enable cross-border payments. It is also exploring the use of stablecoin-based payment options as a replacement for traditional banking channels.
Klarna co-founder and CEO Sebastian Siemiatkowski said, “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. 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.”
Diversification Beyond Point-of-Sale Financing
The move into peer-to-peer payments is seen as Klarna’s latest step to diversify its business beyond point-of-sale financing post IPO. The company offers a digital wallet, a debit card powered by Marqeta and Visa’s Flexible Credentials, and phone plans. Demand for its digital wallet, Klarna Balance, and debit card has been on the rise. As of September 2025, Klarna held about $14 billion in deposits globally, compared to $9.5 billion in August 2024, when the service launched. The Klarna Card also logged about 4 million sign-ups in its first four months since its launch.
U.K. Payments Group Advocates for Stablecoin Cap Removal
As U.K. regulators are working on regulations for stablecoins, the Emerging Payments Association (EPA) is urging the government to simplify the rules and remove some restrictions. The EPA’s 2026 manifesto states that the Bank of England’s stablecoin proposal is “overly complex and unworkable.” The EPA, which has more than 150 members including payment networks, banks and issuers, merchant acquirers, payment-service providers and retailers, issued recommendations to the Bank of England. These include removing holding limits on stablecoins and making clear distinctions between U.K.-issued stablecoins and coins from other countries. The EPA also urged the Bank of England to simplify the process for small to medium-sized businesses to support stablecoins for payments.
Fiserv Incorporates Biometrics into Clover
Fiserv is integrating biometrics into its point-of-sale platform, Clover, allowing consumers to link loyalty, payments, and age verification to their face and palm. The company partnered with Wink, a biometrics and payments fintech, for the launch of this service, which will first be available at quick service restaurants, sports venues, and retailers, with a continued rollout planned for the rest of the year.
Ant International Adopts Google’s Agentic Commerce Protocol
Payment and financial technology company Ant International, based in Singapore, is adopting Google’s Universal Commerce Protocol, a standard for agentic artificial intelligence. The protocol uses a common language model for AI agents to communicate and to verify their legitimacy. This move is part of Ant’s strategy to expand its agentic commerce services, giving merchants more control over AI-powered shopping, as well as providing security and interoperability among agents.
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