Nikolas Sargeant
Crypto exchange Kraken has launched Krak, a new global fiat and crypto payments app designed to compete directly with established payment giants like Venmo, PayPal, and Cash App. The application represents Kraken's strategic expansion beyond its core cryptocurrency trading services into the broader financial technology sector, targeting both individual users and businesses seeking efficient cross-border payment solutions.
Krak differentiates itself by offering users free local payments as well as zero-cost international transactions to more than 160 countries, addressing a key pain point in the current payments landscape where traditional services often charge significant fees for cross-border transfers. The app introduces "Kraktags," personalized identifiers that function like crypto-friendly Venmo handles, eliminating the risk of mistyping complex cryptocurrency addresses or sharing sensitive banking details.
Users can earn attractive rewards through the platform, including up to 4.1% rewards for holding the Global Dollar (USDG) stablecoin and up to 10% staking rewards for other digital assets. This yield-generating capability sets Krak apart from traditional payment apps that typically don't offer such earning opportunities on held balances. The platform supports both cryptocurrency and traditional fiat currencies, providing users with comprehensive multi-asset functionality.
The launch deepens Kraken's expansion into financial services and puts the company in closer competition with neobanks and money transfer apps like Revolut, Block's Cash App, and PayPal's Venmo. This move comes as cryptocurrency companies increasingly focus on developing bank-like services, blurring the traditional boundaries between digital assets and conventional fintech solutions. The timing aligns with Kraken's broader growth strategy, which includes recent regulatory expansions in Europe, as the company prepares for a potential public offering in early 2026.
