Klarna's Stablecoin Aims to Disrupt $120B Global Payment Fee Market

Klarna, the Swedish buy-now-pay-later giant, has entered the cryptocurrency arena with the launch of KlarnaUSD, its first stablecoin, built on Stripe's Tempo blockchain. The move marks a strategic pivot for the $11.05 billion market capitalization company, which has long been a payments innovator but whose CEO, Sebastian Siemiatkowski, was once a vocal crypto skeptic. The stablecoin, currently operational on Tempo's testnet, is slated for a public launch on the mainnet in 2026 according to reports.

KlarnaUSD is designed to leverage Stripe's Open Issuance platform, a stablecoin infrastructure tool owned by Stripe, to reduce cross-border payment costs. The company estimates that global cross-border transactions generate $120 billion annually in fees, a market it aims to disrupt. With 114 million customers and $112 billion in annual gross merchandise volume (GMV), Klarna claims it has the scale to challenge legacy payment networks. "With Klarna's scale and Tempo's infrastructure, we can challenge old networks and make payments faster and cheaper for everyone," Siemiatkowski stated.

The partnership with Stripe deepens an existing relationship that spans Klarna's 26 global markets. Stripe and Paradigm co-developed Tempo, a blockchain tailored for high-throughput, low-fee payments according to reports. The collaboration aligns with broader industry trends: McKinsey reports that stablecoin transactions now exceed $27 trillion annually and could surpass traditional payment networks before 2030.

Klarna's foray into crypto comes amid a broader industry boom. The global stablecoin market has surged to $280 billion, driven by regulatory clarity and institutional adoption. However, regulators like the European Central Bank (ECB) have warned of systemic risks, including de-pegging events and mass redemption "runs" that could destabilize markets according to analysis. Despite these concerns, Klarna views the timing as opportune. The company reported 23% year-over-year GMV growth in Q3 2025, reaching $33 billion, though it remains unprofitable with negative earnings per share.

The stablecoin's launch also reflects a shift in Klarna's leadership stance. Siemiatkowski began softening his crypto skepticism earlier this year, citing advancements in scalability and security. The company plans to announce additional crypto partnerships in the coming weeks, signaling a long-term commitment to blockchain innovation.

Globally, stablecoins are reshaping financial infrastructure. The U.S. Treasury's GENIUS Act, enacted in July 2025, mandates that stablecoins be fully backed by U.S. dollars or Treasury bills, driving $109 billion in T-bill purchases within four months. This regulatory framework has positioned stablecoins as a new engine for government debt demand, with Secretary Scott Bessent projecting a $3 trillion market by 2030.

Klarna's entry into the space underscores the growing convergence of fintech and blockchain. As stablecoins mature, their role in reducing transaction costs and enabling faster settlements could redefine global payments-provided regulators and market participants navigate the associated risks according to industry experts.