This Watercolour Text Effect uses a cocktail of Photoshop Filters to create a painted effect with subtle texturing. It uses a Smart Object to keep the original artwork intact, which means you can change the contents and have the filters automatically update to apply the effect to the new artwork. Double click the Smart Object layers in the PSD to alter the text, or paste in any single colour graphic. Save and close those Smart Object documents to find the effect has been instantly applied to your artwork.
To fine tune the effect, alter the Color overlay layer to change the hue of the painting, or double-click the Difference Clouds effect that is applied to the Smart Object layer to randomly generate new texturing.