Dive Brief:
- Buy now, pay later company Klarna Group has introduced a peer-to-peer payment service in Europe similar to Zelle, the firm said Wednesday, although it's not clear if the service will become available in the United States.
- In a news release Wednesday, Klarna said it launched the service in 13 European countries, marking yet another move to compete with banks. Zelle is operated by Early Warning Services, which is owned by seven large banks.
- The feature allows Klarna customers “to send money to friends and family, whether splitting bills or gifting cash, directly from the Klarna app," the company said in its release.
Dive Insight:
Consumers who use the app — which includes an account in which users can deposit and withdraw money — can send payments using a phone number, email address or QR code to other Klarna app users through the peer-to-peer payment system, the release said.
In many ways the London-based buy now, pay later player is already encroaching on territory traditionally governed by big banks.
The company offers a debit card and deposit accounts, along with interest-bearing loans, in addition to the traditional interest free short-term installment loans the BNPL industry is known for.
Klarna CEO Sebastian Siemiatkowski took a swipe at the banking industry Wednesday in the release. “Customers are sick of the friction and fees of traditional banking," he said.
The peer-to-peer service is available in 13 European countries: Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden and the United Kingdom. The service launched on Wednesday, a Klarna spokesperson said in an email.
Services such as Zelle have come under fire in recent years for allowing scammers to facilitate fraud, although Zelle parent company Early Warning Services has defended its security and safety practices.
Klarna will conduct fraud and eligibility checks before letting anyone send money through the peer-to-peer service, the news release said.
"We'd love to bring it to the U.S. but have no immediate plans to do so right now," the spokesperson said.
