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Block has announced the closure of its P2P payments brand Verse within the EU, along with its BNPL platform Clearpay in Spain, France, and Italy. The decision stems from disappointing growth and profitability in these ventures.
Jack Dorsey revealed this development during Block’s second-quarter earnings call, clarifying that these businesses “required significant investment, and the markets have not seen the growth and profitability we had expected over the past several years.”
Dorsey further explained, “We see an opportunity to shift these resources towards strategic areas that have a higher potential return on investment.”
Block had acquired the Spanish P2P payments app Verse in 2020 with the aim of replicating the remarkable success of the Cash App in Europe. Similarly, Clearpay operates as the European arm of Afterpay, which Block acquired in a multi-billion dollar deal in 2021.
For the second quarter, Block reported net revenue of $5.53 billion, marking an increase from $4.4 billion in the previous year. Gross profit also showed a rise of 27% to $1.87 billion, while adjusted EBITDA reached $384 million.
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