Kraken Launches Krak P2P App for Global Payments in 110 Countries

Kraken, a leading cryptocurrency exchange, has launched Krak, a peer-to-peer (P2P) payments app designed to merge the flexibility of cryptocurrency with the convenience of everyday finance. The app is compatible with 110 countries, allowing users to send, receive, and store over 300 assets, including cryptocurrencies, stablecoins, and local fiat currencies, without the restrictions typically imposed by traditional banks or wallet addresses.

Krak operates by using a unique payment ID called a Kraktag, which enables users to send money across the globe in seconds. This feature eliminates the need for bank information or crypto wallet addresses, making the process seamless and efficient. Whether sending Bitcoin to a friend in Europe or euros to relatives in Africa, Krak processes fiat transactions in-app and crypto transactions on-chain, ensuring speed and cost-effectiveness. The app also supports built-in crypto-to-fiat conversion, allowing users to swap between digital assets and local currencies at competitive rates. Its intuitive interface includes features like recurring payments, bill splitting, and multi-currency wallets, making it ideal for freelancers, digital nomads, and families with cross-border financial needs.

Early reviews of Krak highlight its speed and transparency, suggesting it has the potential to disrupt both traditional banking and legacy payment apps. The app's key features on launch day include P2P transfers in 110 countries across over 300 crypto and fiat currencies, Kraktags for instant and private transfers, and the ability to earn up to 4.1% on USDG stablecoin balances and up to 10% on select digital assets. There are no lock-up, minimum, or subscription requirements for spend and earn accounts.

Kraken's backend infrastructure leverages its global network of money transmitter licenses and banking relationships to enable Krak to function as an all-in-one financial center. The app's fee structure is designed to be competitive, with no or ultra-low fees on most transfers, positioning it as a potential "PayPal-killer." Users can earn rewards on their balances, with disbursements occurring daily and no lock-ins. Future plans for Krak include the launch of physical and virtual Krak cards for spending at millions of merchants worldwide, advance-payment services like lending, loans, and credit cards, and enhanced business and company instruments for global payroll and B2B payments.

Kraken's move to launch Krak comes after years of building compliance infrastructure and obtaining licenses in various regions, including the U.S., U.K., EU, and Canada. The company's commitment to regulatory compliance is seen as a key differentiator from less compliant fintech rivals. However, Krak is not yet available in Australia and sanctioned regions, with rollouts dependent on local regulations.

With the launch of Krak, Kraken is directly competing with fintech giants. Compared to Coinbase, Krak offers broader asset coverage and lower fees but is still more convenient for new users. Against Revolut, Krak provides more cryptocurrency functionality, higher yields, and lower transaction fees. While Cash App and Venmo dominate U.S. P2P payments, they have less broad crypto coverage and higher fees. Kraken is betting that the future of money is instant, borderless, and multi-asset, aiming to serve not just traders but anyone who needs to send, spend, and manage their money globally without the hassles of traditional banking.