Klarna is expanding into peer-to-peer (P2P) payments, but CEO Sebastian Siemiatkowski insists this move doesn't directly compete with established Scandinavian services like Vipps and Swish. He argues that traditional banks already facilitate money transfers through various methods, and Klarna aims to support these existing services rather than replace them. Currently, Klarna's P2P payments rely on traditional banking infrastructure, but the company is looking into stablecoin options for future transactions. In November, Klarna announced plans to launch a dollar-backed stablecoin using the Tempo blockchain, developed in collaboration with Stripe and Paradigm. This shift towards stablecoins indicates Klarna's interest in modernizing its payment offerings. A comment from a Finextra member highlights potential regulatory challenges, particularly around anti-money laundering (AML) compliance and Know Your Customer (KYC) requirements, which Klarna did not face with its previous card payment model.