Klarna is launching a service which allows its customers to sconclude 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 sconclude money to other registered Klarna customers, such as splitting bills or gifting cash with friconcludes and family, directly from the Klarna app. Klarna customers will have to have the required funds in their Klarna wallet to sconclude the money.
To sconclude money, utilizers choose a recipient utilizing 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 utilizers globally, hopes to broaden the service to non-Klarna customers and cross-border payments.
The launch forms part of a shift by Klarna to reposition itself as a digital bank and shed its BNPL image. It has launched a debit card, which it declares 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, stated: “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 creating it even simpler to manage all of your payments through Klarna, now including compact transfers, creating managing your money quicker, simpler, and cheaper.”
Siemiatkowski yesterday notified 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.
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