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This is an interesting effect using the Watercolor filter applied to two layers, with the Dissolve blending mode set at 70% Opacity bringing texture to the image.
ORIGINAL IMAGE
1. To apply the filters to two separate layers, duplicate the Background layer twice by dragging it down to the Create a new layer icon at the bottom of the Layers palette.
2. Select each of the Layers one at a time and go to Filter > Convert for Smart Filters.
3. Select the top Background copy and go to Filter > Artistic > Watercolor and apply the settings on the left above.
WATERCOLOR SETTINGS FOR THE TOP LAYER
4. Change the blending mode to Dissolve and Opacity to 60%.
5. Select Background copy 2 below, go to Filter > Artistic > Watercolor, and apply the settings in the top right.