Klarna is launching a service which allows its customers to send money to each other through its app, as it continues its shift to reposition itself as a bank.
The Swedish fintech, best known as a BNPL fintech, is launching peer-to-peer payments across 13 European countries, including the UK.
The feature means that Klarna customers can send money to other registered Klarna customers, such as splitting bills or gifting cash with friends and family, directly from the Klarna app. Klarna customers will have to have the required funds in their Klarna wallet to send the money.
To send money, users choose a recipient using a phone number, email address, QR code, or a saved contact. After confirming the amount, Klarna runs fraud and eligibility checks before proceeding with the payment. Klarna, which has over 100m users globally, hopes to broaden the service to non-Klarna customers and cross-border payments.
The launch forms part of a move by Klarna to reposition itself as a digital bank and shed its BNPL image. It has launched a debit card, which it says has registered four million sign-ups in four months and has bagged an Electronic Money Licence in the UK.
Sebastian Siemiatkowski, co-founder and CEO of Klarna, 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.”
Siemiatkowski yesterday told Bloomberg that Americans are being ripped off by high credit card fees, amid President Trump’s calls for a one-year 10 per cent cap on credit card interest rates.