Block is shutting down the Cash App’s Verse brand in the EU and its BNPL platform Clearpay in Spain, France and Italy, citing disappointing growth and profitability.
Jack Dorsey announced the move during Block’s second quarter earnings call, explaining that the businesses “required significant investment, and the markets have not seen the growth and
profitability we had expected over the past several years”.
Adds Dorsey: “We see an opportunity to shift these resources towards strategic areas that have a higher potential return on investment.”
Spanish P2P payments app Verse was acquired in 2020 with the hope of replicating the huge success of the Cash App in Europe.
Clearpay is the European brand of Afterpay, which Block bought in a multi-billion dollar deal in 2021.
Block reported second quarter net revenue of $5.53 billion, up from $4.4 billion a year ago. Gross profit was $1.87 billion, up 27%, while adjusted Ebitda was $384 million.
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- Source: https://www.finextra.com/newsarticle/42741/block-shuts-european-p2p-payments-brand-verse?utm_medium=rssfinextra&utm_source=finextrafeed
