Klarna Expands Beyond BNPL With Peer-to-Peer Payments
Klarna has expanded its digital banking proposition by launching peer-to-peer payments, marking a strategic move beyond its core buy-now-pay-later business. The feature enables users to send and receive money directly, increasing everyday engagement with the Klarna app. This positions Klarna more squarely against neobanks and super-apps competing for primary customer relationships. The expansion reflects Klarnaβs ambition to evolve into a full-service digital bank rather than a single-use checkout provider. Increased transaction frequency could also improve customer retention and data-driven monetisation. The move signals intensifying competition in consumer payments across Europe and beyond.
Video of the Day
Insight of the Day
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Despite years of investment in RegTech, watchlist screening is still one of the noisiest and most manual parts of the compliance stack in Fintech.
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The data is hard to ignore:
β’ 90β95% of watchlist and AML alerts are false positives across many institutions
β’ Compliance teams spend the majority of their time reviewing low-risk matches, not real threats
β’ Fragmented screening across onboarding, ongoing monitoring, and payments leads to inconsistent decisions and duplicated work
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As volumes grow and real-time payments expand, this model simply doesnβt scale. The real problem isnβt a lack of technology.
Itβs outdated screening logic and disconnected systems.
Most screening setups were built for static, rules-based environments. But today, fintechs are dealing with:
β Global customers
β Constant sanctions updates
β Instant payments
β Higher regulatory expectations
β Pressure to move faster with leaner teams
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Whatβs starting to change and what I find most interesting is how fintech companies are rethinking screening from the ground up.
Not as a compliance checkbox, but as a precision risk filter applied consistently across the full customer lifecycle.
A few shifts Iβm seeing across the industry:
β’ Moving from rigid rules to risk-calibrated screening logic
β’ Reducing alert volumes by 70β90% using smarter matching and context
β’ Using explainable AI that mirrors analyst reasoning instead of black-box decisions
β’ Unifying screening across onboarding, ongoing monitoring, and payments
The goal isnβt to remove humans from the loop. Itβs to give compliance teams fewer alerts, better signals, and clearer explanations β while maintaining auditability and regulatory confidence.
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Iβll be joining a live session by Unit21 next week to unpack how fintech compliance teams are redesigning watchlist screening for 2026 and beyond.
If youβre leading compliance, risk, or building fintech infrastructure, itβs worth a listen.
Curated News
π³ Payments
Deutsche Bank Expands PayPal Support Globally
Deutsche Bank is strengthening its global payments capabilities by expanding infrastructure support for PayPal. The partnership aims to improve settlement efficiency and cross-border transaction scalability.
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Capi Money Gains FCA EMI Licence for UKβAfrica Payments
Capi Money UK has secured FCA electronic money institution authorisation to scale UKβAfrica payment flows. The licence enables faster expansion of compliant cross-border services for SMEs and exporters.
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BVNK to Power Stablecoins in Visa Direct Pilots
BVNK will provide stablecoin infrastructure for Visa Direct pilot programs. The initiative signals growing institutional confidence in stablecoins for real-time global payments.
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π¦ Banking
Monzo Savings Challenge Highlights Retention Gap
A Monzo savings initiative has revealed persistent customer retention challenges despite strong engagement. The findings suggest digital banks still struggle to convert usage into long-term loyalty.
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Abound Enters Mortgage Market via Ahauz Acquisition
UK fintech Abound has entered the mortgage market through the acquisition of Ahauz. The deal expands Aboundβs secured lending capabilities and product scope.
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πΌ Fintech
Alpaca Becomes First Japanese-Founded Fintech Unicorn in the US
Trading infrastructure startup Alpaca has reached unicorn status, becoming the first Japanese-founded fintech to do so in the US. The milestone reflects growing demand for API-first brokerage platforms.
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Groww Profit Falls as User Base Tops 20 Million
Indian investment platform Groww reported a 28% drop in Q3 profit while surpassing 20 million users. The results highlight the cost pressures of rapid scale.
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Nubank Customers Save R$159 Million Through Partnerships
Nubank customers saved R$159 million over one year through a strategic partnership program. The initiative reinforces Nubankβs focus on customer value creation.
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πͺ Crypto
AI-Fueled Crypto Scams Drive Losses to $17 Billion
Crypto scam losses reached $17 billion in 2025, with AI playing a major role in scaling fraud. Generative tools enabled more convincing impersonation and social engineering attacks.
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Ripple Secures New European Licence as XRP Gains
Ripple has secured another key European regulatory licence, strengthening its compliance position. The approval coincided with a rise in XRP prices.
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Coinbase Withdraws Support for US Crypto Bill
Coinbase has withdrawn backing for a major US crypto market structure bill ahead of a Senate vote. The move underscores growing industry frustration with regulation.
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FTX Sets Next Creditor Payout Timeline
The FTX estate has announced its next creditor payout date as legal disputes continue. Genesis Digital Assets is contesting a $1 billion clawback claim.
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Visa Sees Stablecoin Payments Gaining Momentum
Visa reports growing stablecoin payment volumes, pointing to increased real-world adoption. The trend highlights stablecoinsβ role in future payment infrastructure.
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Pakistan Explores Dollar Stablecoin Partnership
Pakistan is reportedly exploring a partnership on a dollar-backed stablecoin. The move reflects emerging-market interest in blockchain-based monetary tools.
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π WealthTech
Keye Launches Deterministic AI for PE Due Diligence
Keye has launched a deterministic AI co-pilot designed for private equity due diligence. The tool prioritises auditability and reliability over probabilistic outputs.
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ClearScore Automates Debt Repayment in Lender Apps
ClearScore has embedded automated debt repayment tools directly into lender applications. The solution aims to improve borrower outcomes and reduce default risk.
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βοΈ Regulation
DTCC Comments on UK MiFID ARM Registration
DTCC has shared insights on the UKβs MiFID Approved Reporting Mechanism registration. The update reflects ongoing post-Brexit regulatory adjustments.
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ESMA Launches New Digital Strategy
ESMA has unveiled a new digital strategy focused on data-driven supervision and innovation. The plan aims to modernise regulatory oversight across EU markets.
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𧩠Other
Exegy Acquires NovaSparks to Boost Market Data Speed
Exegy has acquired NovaSparks to enhance its ultra-low-latency market data offerings. The acquisition strengthens its position in high-frequency trading infrastructure.
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Plumery Launches AI Fabric for Banks
Plumery has launched an AI Fabric platform to help financial institutions deploy AI faster. The solution focuses on speed, governance, and scalability.
Source
Optalitix Partners With Intermont to Digitise Underwriting
Optalitix has partnered with Intermont to digitise underwriting processes. The collaboration aims to improve efficiency and risk transparency.
Source
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Would love to get your perspective on a question that this prompted:
If you were starting a fintech today, what would be 3 areas youβd explore + what are 3 you would avoid?
Reason it intrigued me is that starting today means the competition you have to concern yourself with is more often the likes of Klarna, CashApp, NuBank, Robinhood, Revolut, Coinbase etc.
Who operate at massive scale, are systemically important as the predominant disruptors in their areas, and increasingly behave like incumbents on protecting their position, while still retaining high product velocity and a tech-first culture.
So you have to go in assuming they can fast-follow attractive features, undercut on unit economics at scale, or bundle wedges into existing offerings - which is a very different backdrop to when they all started out.