Klarna Enters Crypto to Slash $120B Cross-Border Payment Fees

Klarna, the Swedish buy-now-pay-later giant, has entered the crypto market with the launch of KlarnaUSD, its first stablecoin, built on a blockchain platform co-developed by Stripe and Paradigm. The stablecoin, currently available on Tempo's testnet, is set to debut on the mainnet in 2026, positioning the company to tap into the rapidly growing stablecoin ecosystem. Klarna's move comes as stablecoin transactions now exceed $27 trillion annually, with analysts predicting they could surpass traditional payment networks before 2030.

The stablecoin is issued via Open Issuance by Bridge, a Stripe-owned infrastructure platform, and aims to reduce cross-border payment costs, which currently generate $120 billion in annual fees. Klarna CEO Sebastian Siemiatkowski, who once expressed skepticism toward cryptocurrency, now champions the technology, stating, "With Klarna's scale and Tempo's infrastructure, we can challenge old networks and make payments faster and cheaper for everyone". The firm, which serves 114 million customers and processes $112 billion in annual gross merchandise volume, has positioned itself to leverage blockchain for its BNPL model.

The partnership with Stripe deepens an existing relationship that spans Klarna's 26 global markets. Tempo, designed for high-throughput stablecoin settlements, was co-developed by Stripe and Paradigm and recently secured $500 million in funding at a $5 billion valuation. Klarna's foray into stablecoins also aligns with evolving regulatory frameworks in the U.S. and EU, which have begun to provide clearer guidelines for stablecoin issuers.

Despite Klarna's ambitious plans, the company remains unprofitable, with $3.2 billion in revenue over the last 12 months and a market capitalization of $11.05 billion. However, its strong liquidity-reflected in a current ratio of 29.46 provides financial flexibility to pursue new ventures. The stablecoin initiative is the first of several crypto-related moves, with additional partnerships expected in the coming weeks.

Klarna's entry into stablecoins underscores a broader industry trend. JPMorgan recently reported that Circle's USDC has overtaken Tether's USDT in onchain activity, driven by regulatory clarity and institutional demand. As stablecoins gain traction, traditional financial institutions and fintechs are increasingly integrating blockchain to streamline payments and expand into decentralized finance (DeFi).