Klarna is allowing transfers between Klarna users at launch, and the company plans to expand the capability to non-Klarna customers and cross-border payments soon, it said in a Wednesday (Jan. 14) press release emailed to PYMNTS.
“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,” Klarna Co-Founder and CEO Sebastian Siemiatkowski said in the release.
With the new P2P payment capability, users of the Klarna app can send money by choosing a recipient using a phone number, email address, QR code or saved contact, according to the release.
Klarna then confirms the amount, runs fraud and eligibility checks, and proceeds with the payment, the release said.
These P2P payments run on traditional banking rails, but Klarna is exploring stablecoin-based options, per the release.
PYMNTS reported in November that Klarna’s third quarter earnings update, which was its first as a publicly listed company, detailed a strategic transformation that seeks to push the brand into full-scale digital banking built on top of transaction-driven acquisition and loyalty.
“A lot of you will be familiar with buy now, pay later, but we do offer a number of other services like searching for products at the right price, making sure that it’s easy to pay your bills and manage your finances, to show you where your packages are in real time so you can go and pick them up, and give you control and insights of your spending habits,” Siemiatkowski said during the earning call.
The company unveiled its Klarna Card last June, saying the card lets users pay from stored cash or activate Klarna’s Pay in 4 and pay later plans at merchants that accept Visa.
In December, Klarna began rolling out a new tap-to-pay feature in 14 European markets. This feature allows users of the Klarna app to set up flexible payment plans and pay with a tap, in a single place and without needing to add their card to another digital wallet or switch apps at checkout.