In a significant move to challenge traditional banking, the buy now, pay later giant Klarna has announced it is launching a peer-to-peer (P2P) payments service for its UK customers.
Klarna Takes Aim at Banking 'Friction and Fees'
The new feature, announced in January 2026, will allow registered Klarna users to send money directly to friends and family, split bills, and gift cash. This strategic expansion positions Klarna's app as a more comprehensive financial hub, moving beyond its core retail finance offerings.
Sebastian Siemiatkowski, Klarna's co-founder and CEO, was forthright about the motivation behind the change. He 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." He added that P2P payments will make managing money "quicker, easier, and cheaper" all within the Klarna ecosystem.
Building on the Success of Klarna Card
The launch follows the rapid uptake of the Klarna Card, a physical card linked to its pay-in-instalments service. Siemiatkowski has previously defended the buy now, pay later model as safer than credit cards, highlighting benefits like zero interest, lower losses, and real-time underwriting. He has also expressed support for interest rate caps to protect consumers.
The introduction of peer-to-peer payments marks a clear step towards competing with digital banks and payment apps, offering users a unified platform for shopping, spending, and now, sending money.
Customer Reviews Reflect Strong Brand Loyalty
Klarna's existing user base appears highly receptive to its services, as evidenced by glowing reviews on its website. One user called it a "fabulous way to spread the cost of shopping," while another declared it "the best money app ever made."
Further testimonials praised Klarna's customer service, flexibility, and the ease of managing payment plans. One five-star review summarised the sentiment: "They never disappoint, Klarna is my 1st recommendation." This established loyalty could prove crucial as Klarna ventures deeper into the competitive personal finance arena.
The move signals a shifting landscape in UK consumer finance, where agile fintech firms are increasingly bundling services to create alternatives to established high street banks, focusing on speed, simplicity, and cost-saving.
