Klarna Expands into Instant P2P Payments as Deposits and Card Usage Climb

Klarna has shared an update. The company has launched instant peer-to-peer (P2P) payments in 13 European countries, allowing users to send money to friends and family directly within the Klarna app. The service supports everyday use cases such as splitting bills and reimbursements, leveraging Klarna’s status as a regulated bank. This launch extends Klarna’s move beyond point-of-sale and BNPL services toward broader everyday banking, building on its Klarna Balance accounts and Klarna Card offering.

Klarna reports strong recent traction in its banking products: since the launch of Klarna Balance in August 2024, global deposits have nearly doubled from $9.5 billion to $14 billion as of September 2025, and its debit-style Klarna Card has reached 4 million sign-ups in four months, with card transactions now representing 15% of total payment volume. The company plans to expand transfers beyond existing Klarna users, support cross-border payments, and is exploring stablecoin-based payment rails over the longer term.

For investors, the rollout of P2P payments indicates Klarna’s strategic push to become a full-service digital bank and primary money-management platform rather than a single-purpose payments provider. Growing deposit balances and card adoption suggest increasing customer engagement and a more diversified revenue base, potentially improving unit economics and reducing reliance on merchant fees and credit products. If Klarna can scale P2P and cross-border payments while maintaining regulatory compliance and risk controls, it may strengthen its competitive position versus neobanks and fintech wallets across Europe and increase its appeal ahead of any future capital-raising or liquidity events. However, execution risk remains high given intense competition, regulatory scrutiny around digital banking and crypto-related rails, and the need to balance rapid growth in deposits and payment volumes with profitability and prudential requirements.