Kraken, one of the leading crypto exchanges globally, has launched its peer-to-peer (P2P) payments application named Krak.

Functionalities of Krak

The Krak app enables users to make cross-border P2P transactions using both fiat and cryptocurrencies. It also includes a spend account that offers yield generation on over 20 digital assets, alongside an earnings account.

Competing in the Market

Kraken now faces competition from established P2P players such as Venmo and Cash App, which already support cryptocurrency transactions to varying degrees. However, due to its origins in digital assets, Krak boasts a broader crypto scope, allowing for the exchange of over 300 different assets including both cryptocurrencies and local currencies.

Expanding into Mainstream Financial Services

The launch of Krak marks Kraken’s push into mainstream financial services. The company has already introduced a debit card for UK and European customers, enabling them to spend their crypto assets at millions of merchant locations.

While this move into traditional finance seems logical for Kraken, the success remains uncertain. Joel Hugentobler from Javelin Strategy & Research mentioned in PaymentsJournal that making crypto-based payments viable “has been a tough one to crack.” He emphasized that while stablecoins could provide a more stable option compared to volatile cryptocurrencies when used with debit cards.

P2P App’s Future Plans

Kraken intends to expand Krak further. According to Reuters, the company plans to add both physical and virtual payment cards as well as loan products to the app in the near future.