Lloyds Nears £120m Acquisition of Curve in Major Fintech Push

High street banking giant eyes digital wallet innovation as competition with Apple and Google intensifies

Lloyds Banking Group Set to Acquire Curve for £120 Million

Lloyds Banking Group, the UK’s largest high street lender, is reportedly on the brink of acquiring British fintech firm Curve in a deal worth approximately £120 million. The acquisition could be announced as early as this week, marking a major step in Lloyds’ strategy to expand its digital payments capabilities.

The move would give Lloyds access to Curve’s smart wallet technology — an increasingly valuable asset as regulators apply pressure on Apple and Google to open up their payment ecosystems.

What is Curve and Why Does it Matter?

Curve, founded in 2016 by Israeli entrepreneur and former special forces soldier Shachar Bialick, was once one of the UK’s most hyped fintech start-ups. The platform allows users to consolidate multiple debit and credit cards into a single digital wallet, aiming to streamline payments and improve customer control.

Despite earlier ambitions of going public at a £50bn+ valuation, the company is now reportedly being sold at a significantly lower price than previously forecast — disappointing many early investors.

Key points:

• Curve raised over £200 million in equity funding since launch.
• Its Series C funding round in 2023 raised £133 million, with backers including Britannia, IDC Ventures, and Outward VC.
• Curve paused its US expansion and downsized its workforce last year while securing a further £40 million in funding.

Why Lloyds Wants Curve

Lloyds, led by chief executive Charlie Nunn, is focused on strengthening its digital infrastructure and sees Curve as a strategic acquisition. The bank already holds fintech stakes, such as in cloud banking platform Thought Machine, but this move reinforces its intent to compete directly with global tech giants in the digital payments space.

With regulators including the Financial Conduct Authority and Payment Systems Regulator examining the dominance of Apple Pay and Google Pay, this acquisition puts Lloyds in a strong position to leverage open banking reforms and develop its own ecosystem.

Strategic motivations include:

• Gaining control of a proven digital wallet platform
• Responding to growing regulatory pressure on Big Tech
• Enhancing customer experience through innovation
• Diversifying revenue sources by deepening fintech exposure

Investors' Take: Opportunity or Risk?

For Lloyds investors, the Curve deal could signal long-term growth potential in fintech, though the relatively low acquisition price may also suggest Curve is past its peak. As competition in digital finance intensifies, success will depend on Lloyds' ability to integrate Curve’s technology and scale its adoption across its large retail base.

If successful, the acquisition could:

• Strengthen Lloyds’ fintech portfolio
• Increase customer stickiness through enhanced digital services
• Offer new revenue streams beyond traditional lending

What’s Next?

While final details are yet to be confirmed, the acquisition would mark one of the most significant fintech deals in recent UK banking history. The transaction also underscores how traditional banks are racing to stay relevant in an increasingly digital-first financial world.

With Curve’s future now tied to a major high street bank, this deal could shape the UK’s digital payments landscape — and possibly offer investors a unique window into the next phase of fintech evolution.

Source: (Sky Money)