Another player in the packed p2p payments house is announcing an $eight.3 million Series A funding spherical today. SF and Barcelona based mostly Verse is gunning to be the Venmo of Europe — specified Venmo hasn’t however shown an inclination to increase its mobile social payments app outside the house the US.

The Series A is led by Greycroft, with participation from Spark Money and eVentures. Verse had previously raised a $one.8M seed spherical from angel investors in Europe and the US. DFJ Dragon also invested in that spherical.

The new funding will be used to increase its team, like new hires targeted on item growth, aimed at accelerating its development, says co-founder Alex Lopera.

“We’re making an attempt to be like the WhatsApp of payments,” he tells TechCrunch. “It’s actually aggravating today when you want to do a transaction, when you want to pay back back again your mates, revenue that you owe them, and you never want to do online banking. It’s not some thing that is awesome or actually will work.

“Verse is super slick and straightforward — you just type the amount that you want to transfer, pick 1 of your phone contacts from your deal with reserve, click send and the money’s currently there.”

It’s a mobile social payments story that’s amply acquainted from various apps these day. And not just in the US: in Europe other players here incorporate the likes of France’s Lydia, Germany’s Cookies, US-based mostly Circle, and N26 with its MoneyBeam offering, to title just a couple of.

But as my TC colleague Romain Dillet succinctly puts it: “Social payments is not a item it is just a feature” — which is yet another way of saying there’s a race on to see which of these startups can scale speedy adequate to be the winner-usually takes-all network for Europe. Soon after which they’ll be in a posture to monetize p2p usage via other banking capabilities — and even by starting to be fully fledged banking companies (N26 obtained its banking license this summer season, for instance).

Lopera touts Verse’s sector footprint as an gain vs competition, noting it is now in sixteen European markets — which does give it increased attain than some rivals at this point, even as most of the competitive discipline here is also thinking outside one local European sector.

Verse was essentially incorporated in San Francisco, and went via a neighborhood accelerator there, ahead of relocating most of its team to Barcelona and smooth launching the app this February. It now has close to 550,000 consumers throughout its Android and iOS footprint, according to Lopera, relying on viral spread relatively than any substantial promoting spend at this point.

He claims the typical dimension of payment Verse consumers are pinging to each individual other by way of the app is between €25 and €30.

Verse does not have banking partners in the different markets it covers but relatively holds client money in neighborhood financial institution accounts, settling euro transactions in markets in which it does not have a neighborhood financial institution account by way of SEPA payments. (So, unsurprisingly, Lopera is hoping Brexit does not happen.)

“We imagine that there’s actually no company today that has cracked the whole European sector,” he adds. “We’ve witnessed other organizations launching goods that are quite neighborhood. We haven’t essentially witnessed a player that is working in each individual important European place and essentially has a smooth mobile app that will work throughout international locations.

“It’s a crowded house, a great deal of folks are intrigued in this house but we truly feel it is a actually big prospect because there’s a great deal that can be innovated in the payments industry… There’s not actually a winner however, that is using above Europe, in terms of social payments for Millennials. And that is actually what we’re going immediately after.”

What about the likely risk of a messaging large these types of as WhatsApp wading into p2p payments and sucking all the utilization out of the space? WhatsApp’s parent Facebook does currently give p2p payments in Messenger in the US, for instance.

“For WhatsApp to release some thing like this, it is going to acquire ages,” argues Lopera. “Just acquire into account how lengthy it took for them to start WhatsApp phone calls. So… ”

That does not suggest smaller players here could not be foreseeable future acquisition targets for messaging network giants.

Verse does not cost for p2p payments generally but if a user wants to send money between distinctive European currencies — these types of as the euro and the UK’s pound sterling — it does cost a fee, of between one.five to two per cent “depending on the place and the currency”.

Verse is using blockchain technologies for its most important ledger program but not for relocating revenue close to (as some other payment startups, these types of as Circle — which begun life as a Bitcoin wallet — are).