Square acquires Spanish P2P app Verse to bolster Cash
Square has added fuel to its growing Cash transfer service by agreeing to buy Verse, a Spanish P2P app.
Verse will operate as an independent business, though Square mentioned Square and Cash's teams will share expertise, and Cash would add technology and resources to Verse. Verse offers social tools, P2P transfers and the ability for people to form groups to pool purchases for events. Square did not disclose terms of the deal.
Cash has been a high performer at Square, growing 60% in 2019, reaching about 24 million consumers. That followed a 240% jump in 2018. Revenue from Cash app users has doubled in each of the past two years, and the unit outperforms PayPal's Venmo as a money-maker.
Square over the past two years has focused on two major areas: Seller — or tools for merchants such as registers and Square Capital; and Cash — a more consumer-focused line of business. Square sold its Caviar delivery app in 2019 as part of that focus.
Square has also received an industrial banking license, allowing it to directly make loans, considered a key move as small businesses try to recover from the coronavirus lockdowns.