Square buys up Spanish P2P payment app Verse
Square, the fintech payments giant valued at around $27 billion, has acquired Verse, a Spanish peer-to-peer (P2P) payments app.
The acquisition, the value of which has not been disclosed, will see Verse join forces with Square’s Cash App offering, its mobile payment service which had 24 million active users at the end of 2019.
Though the companies will not merge brands, Square and Verse will share their expertise, technology and resources.
“At this point, our main priority is enabling Verse to continue their successful growth in Europe. Verse will continue to operate as an independent business, working out of their offices with no immediate changes to their existing products, customers, or business operations,” a Square spokesperson said in a statement.
Square said its Cash App grew 60% last year, following a 240% jump in growth in 2018. Revenue from the app also doubled in 2018 and again in 2019, outperforming PayPal’s Venmo.
In the last two years, the fintech has focused on two key areas of business – merchant tools for the seller, and its consumer-focused cash business. This led to the sale of its delivery app, Caviar, in 2019.
In March, the company landed an Industrial Loan Company (ILC) licence from the Federal Deposit Insurance Corporation (FDIC).
Set to be named Square Financial Services, the bank is expected to launch in 2021, and will be used to issue loans to existing Square business customers.