Kraken, one of the world’s largest crypto exchanges, presented a new payment app with Krak. The application enables money to send money worldwide in Fiat currencies and cryptocurrencies in real time. With the product, the company wants to create an alternative to existing payment services and simplify classic financial processes.
• Real-time payment app for crypto and fiat
• Fast, cheap, usable worldwide
• Expansion to the all-in-one financial platform planned
Alternative to existing payment methods
With the Krak app, Kraken wants to make peer-to-peer payments easier-regardless of traditional banks-and thus starts a direct attack on established payment services such as PayPal, Venmo and Cash app. The application supports both classic currencies such as euros and US dollars, as well as cryptocurrencies such as Bitcoin & Co. and stable coins. It should be possible to handle payments within a few seconds – cross -border and with more than 300 supported currencies. According to his own statement, octopus sees the need to modernize existing payment systems. The company criticizes the often high fees and long processing times in conventional providers. With Krak, Kraken wants to provide an inexpensive and faster alternative.
Peer-to-peer payments with Kraktagen
Krak is based on a simplified payment system. Users register with a personal “Kraktag”, which serves as a clear username and replaces the exchange of IBANS or wallet addresses. Payments can be handled directly via these Kraktags. While Fiat transactions are processed via Kraken’s internal infrastructure, crypto transactions run via the respective blockchain. The system does not provide for any feedback options, which is why payments sent are final and cannot be canceled. At Krak, fees only apply if the user requires a currency conversion. According to octopuses, there are no additional costs for payments in the same currency.
Access and use
Existing octopus customers can use Krak with their existing access data, as the company explains. New users must register and complete an identity examination (KYC) to intermediate levels before they can send or receive payments. The app makes it possible to keep credit in various fiat and cryptocurrencies, to send payments via Kraktag or Paylink and to conduct a donation and an EARN account.
Savings account and planned offers
Credit can be paid about via the Earn account. There is no blocking period or a minimum credit. Kraken also plans to expand Krak in the future to expand further financial products. This includes physical and virtual payment cards and loan offers. In the long term, the app is to be expanded into a comprehensive financial platform.
Regulatory framework
Kraken has already secured regulatory approvals for Krak. Among other things, the company in Ireland was given a mica license. This approval enables octopuses to offer crypto services throughout the European Economic Area.
Conclusion
With Krak, octopus is expanding its offer with a payment app that links classic Fiat currencies and cryptocurrencies. The app is aimed at users of cryptocurrencies as well as people who are looking for quick and cheap international payments. Whether Krak can prevail on the market will depend on how many users perceive the offer as a practical and trustworthy alternative to existing payment services.
Editor finance.net
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