Klarna and Privy Partner to Push Crypto Wallets Into Mainstream Finance

Fintech giant Klarna Group plc is making a bold move to bring cryptocurrency into everyday consumer life. The Swedish payments company has teamed up with Privy, a wallet infrastructure platform backed by Stripe, to jointly develop a user-friendly crypto wallet designed for the masses—not just crypto enthusiasts.

This partnership represents Klarna’s latest step in its crypto expansion, following the November 2025 launch of KlarnaUSD, the company’s own stablecoin. The collaboration aims to make storing, sending, and trading digital assets as seamless as swiping a credit card.

Why This Matters for Mainstream Adoption

Privy already powers over 100 million accounts across major crypto platforms, offering Klarna immediate access to battle-tested infrastructure. By leveraging this foundation, Klarna can tap into its massive user base—hundreds of millions globally—to normalize crypto transactions alongside traditional payments and savings features.

The wallet won’t launch overnight; regulatory approvals remain essential before any public release. Still, this signals a critical shift: major fintech firms are moving crypto beyond speculative trading and positioning it as infrastructure for ordinary financial tasks.

Klarna’s strategy addresses a real friction point. While hundreds of millions of crypto holders exist globally, mainstream adoption has stalled partly due to clunky user experiences. An intuitive wallet embedded in Klarna’s ecosystem could change that calculus, especially for users already comfortable with the platform’s payment rails.

How Competitors Are Responding

Klarna isn’t alone in seeing the opportunity. PayPal Holdings, Inc. has already made its move, launching PYUSD (PayPal USD), an Ethereum-based stablecoin that users can buy, sell, and transfer within PayPal or external wallets.

Meanwhile, Visa Inc. has taken a different approach, investing heavily in stablecoin infrastructure and infrastructure pilots. Recently, Visa launched a program enabling instant USD-stablecoin payouts through its Visa Direct platform, allowing creators and gig workers to receive earnings directly to crypto wallets.

The competitive pressure is real: whoever makes crypto accessible first will likely capture significant market share and customer loyalty.

Stock Performance and Market Position

Klarna’s shares have retreated 6.6% over the past month, underperforming the broader fintech sector which fell 2.3%. From a valuation lens, the stock trades at a forward price-to-earnings multiple of 72.59X—well above the industry average of 20X.

Analyst consensus expects Klarna to report a 57-cent loss per share for 2025, with a projected 188.5% improvement in profitability the following year. The stock currently holds a Zacks Rank of #2 (Buy).

The Bigger Picture

For Klarna, embedding crypto wallet capabilities opens new revenue streams—transaction fees, custody solutions, financial products built on stablecoin rails—while deepening user engagement and creating competitive differentiation.

However, execution and regulatory navigation will determine whether this vision materializes. If Klarna successfully launches an intuitive crypto wallet to mainstream audiences, it could fundamentally reshape how everyday people interact with digital assets. That outcome alone explains why competitors like PayPal and Visa are also racing to capture this space.