San Francisco-based payments company Block is closing some of its European business operations, including its peer-to-peer payment app Verse and its buy now, pay later platform Clearpay, due to a lack of expected profitability.
Facts
- Block is closing its European operations in favor of areas with higher potential returns on investment.
- The peer-to-peer payment app Verse will be deactivated and removed from app stores and devices by 13 September.
- The buy now, pay later platform Clearpay will cease operations in Italy, France, and Spain.
- CEO Jack Dorsey confirmed the closures during Block’s Q2 2023 earnings call, stating that the businesses did not generate expected profitability.
- Block had acquired Verse and Clearpay to expand its presence in the European payments market.
- Despite Block’s Cash App having 54 million monthly users, the decision to reduce brand spending and focus on more proven channels was made.
- This shift in spending allowed Block to identify cost savings in corporate overhead spending.
- Additionally, Block is downsizing its real estate footprint in some West Coast office locations to recover from $132 million operating losses in Q2.
