Square acquires the European peer-to-peer payment application Verse

Square has acquired Verse, a Spanish affiliate payment application that operates across Europe.

The terms of the deal were not disclosed. According to Crunchbase, Verse has raised $ 37.6 million from Spark Capital, eVentures, Greycroft Partners and others.

Square has attracted many users with its Cash App, its payment app that allows you to easily send and receive money from your phone. However, the Cash app is only available in the US and UK.

The acquisition of Verse seems appropriate to expand Square’s presence in Europe. The Verse team will join the Square Cash Applications division.

There are many similarities between the Cash App and Verse. The main feature of Verse is that it allows you to send and receive money from a mobile application. Users do not pay fees and transfers are made in just a few seconds.

Verse users register with their phone numbers, which means you can send money to other users as long as you have their phone numbers in your address book. If you do not have enough money in your Verse account, the app may charge your debit card directly. And if you want to withdraw money from your Verse account, you can transfer your balance to your bank account.

Most recently, Verse launched a Visa debit card in Spain, which allows you to spend money directly from your Verse account. You do not pay foreign exchange fees and receive two free ATM withdrawals per month. Verse uses the Visa exchange rate.

Although the startup has not shared usage statistics for some time, according to App Annie, it is currently № 247 most downloaded app in the App Store in Spain in all categories. Peer to peer payments are a fragmented market. For example, the French startup Lydia has 3 million users in France.

“At this point, our main priority is to enable Verse to continue its successful growth in Europe. Verse will continue to operate as an independent business, operating in its offices without immediate changes to their existing products, customers or business operations, ”Square said in a statement.

The three most important words in this statement are “at this moment. Square does not want to fix what is not broken. But it wouldn’t be surprising if Verse slowly grew into Europe’s Cash App.