Is Lloyds Targeting Digital Growth Through Acquiring Curve?
Finserv Lloyds Banking Group, one the UK’s largest banks, could be acquiring Curve, a digital wallet provider.
The transaction is expected to be announced later in the month, with some reports estimating the news could break as early as next week.
Sky News has reported that the deal is estimated to be somewhere in the league of £120m (US$162).
It comes as part of a strategy to increase growth in transforming digital infrastructure, led by CEO Charlie Nunn.
Lloyds Banking Group provides a range of financial services to everyday consumers and businesses.
Included as part of its service is financial advice and guidance to commercial clients and personal account holders across Britain.
The bank also offers funding options to businesses of varying sizes, bolstering growth domestically and internationally.
- Lloyds is one of the UK’s oldest banks, with its first branch opening in 1864
- Curve has raised more than £200m (US$270.5) in equity since it was founded
- Lloyds operates more than 200 branches in the UK.
What is Curve?
Financial services provider Curve, with a mission to build an operating system for money, was founded a decade ago in 2015.
Curve Pay, the suspected target of the Lloyds acquisition, aims to consolidate multiple cards into a single digital wallet for the convenience of the user.
The banking service claims to be the only wallet to save users money, as its software allows users to consolidate rewards, skip hidden foreign transaction fees and switch between cards.
Curve started gaining traction after a partnership with Apple Pay, enabling Apple Pay users to add Curve Pay in the first half of 2020.
It then announced expansion into the US, along with other fintechs Revolut, N26 and Monzo.
The launch of Curve Pay
Most recently, Curve announced the results of a successful investment round from Hanaco Ventures.
Curve received £37m (US$50m) in funding from the venture capital firm to assist in the launch of Curve Pay
Shachar Bialick, CEO and Founder of Curve, said at the time: “This latest investment reflects the confidence in Curve's vision to redefine the digital wallet space.
"The Wallet Wars are here and the only available solutions for customers to date are simple wallets which do nothing more than let you pay with your card.
"Curve is the only wallet that adds superpowers to your money – avoid Fx fees from any linked card, split old purchases into instalments, earn cashback on top of any card and more.
"This investment would allow us to invest further in our customer experience, bring new partnerships and accelerate our path to profitability."
Lloyds and Curve
The partnership has been expected since initial interest in Curve from Lloyds in July.
The deal could be a significant milestone for the UK fintech sector, as one of the nation’s biggest banks teams up with the London-based startup known for its digital wallet technology.
