Lloyds Banking Group Eyes Curve in Potential £120M Acquisition
Lloyds Banking Group is in advanced talks to acquire Curve, a UK-based fintech startup, for up to £120 million. This potential deal could significantly reshape the landscape of payments innovation, giving Lloyds an edge in the digital wallet race.
Founded in 2016, Curve allows users to combine multiple debit and credit cards into one smart wallet. It has since added tools for transaction management, card-level preferences, and rewards routing — creating a product that blends control, convenience, and customisation.
Why Curve Matters for Lloyds’ Digital Ambitions
Lloyds has made payments innovation a core priority under CEO Charlie Nunn, aiming to strengthen its digital infrastructure and reduce third-party dependencies. Acquiring Curve could give the bank direct access to wallet technology, helping it reduce reliance on platforms like Apple Pay and Google Wallet.
These third-party tools charge fees to banks and merchants, creating friction in an otherwise fluid customer experience. By owning a wallet solution, Lloyds gains better control over user interfaces, data, and transaction flows — all while delivering personalised banking features.
Curve’s Core Technology and Market Position
Curve isn’t just a wallet — it acts as a modular payments layer, allowing users to route transactions through selected cards or assign specific benefits. This ability to intercept and manage payments gives users unprecedented flexibility and banks a new way to engage customers.
Although its 2023 valuation stood at £133 million, the current reported price suggests a correction, likely due to paused US expansion and internal cost cuts. Even so, Curve remains one of the most advanced wallets built natively in the UK fintech scene.
A Strategic Fit Despite Valuation Dip
If finalised, the deal would fall below Curve’s last funding round valuation but reflects current market dynamics. With £200 million raised since inception, the company has scaled thoughtfully, focusing on product innovation over geographic spread.
Lloyds sees the value not just in Curve’s app, but in its transaction routing engine and customer experience layer. These features could be embedded across Lloyds’ personal and business banking offerings, strengthening their competitive moat in payments.
Payments Innovation Driving Fintech Consolidation
The potential acquisition aligns with a growing trend of bank-fintech tie-ups. As user experience becomes a critical battleground, banks like Lloyds are moving beyond partnerships into full ownership of tech platforms.
Moreover, the UK government’s renewed push for fintech development — including better funding access for startups — adds momentum to these deals. With digital wallets increasingly central to financial engagement, owning infrastructure like Curve becomes strategically essential.
From Mobile Wallets to Modular Rails
Curve’s appeal lies not just in consumer appeal but in its foundational tech stack. Its architecture allows for programmable payments, dynamic incentives, and real-time financial decisions — features that traditional banks find hard to build alone.
Therefore, for Lloyds, Curve offers an immediate upgrade in payments innovation, giving the bank agility in a market dominated by tech-first challengers.
While negotiations continue, the direction is clear: legacy banks must build or buy to stay relevant in a fast-changing payments landscape.
Looking Ahead: Curve’s Role in Lloyds’ Digital Future
Should the deal proceed, Curve could become Lloyds’ answer to Big Tech wallet dominance — a bank-controlled alternative with smarter controls and tighter integration.
As Curve’s transaction engine merges with Lloyds’ ecosystem, UK customers could see a more fluid, feature-rich payment experience, built around the bank they already trust.
While nothing is signed yet, this deal marks a turning point in how UK banks view fintech — not as competition, but as a catalyst.