Lloyds Banking Group Strikes £120 Million Deal to Acquire Curve Amid Fintech Expansion
Lloyds Banking Group has reached an agreement to acquire Curve, the London-based digital wallet and payments app, in a deal valued at approximately £120 million. The acquisition marks one of the most significant moves by a major UK high-street bank into the fintech sector, underscoring Lloyds’ ambition to modernise its digital capabilities and enhance its competitive standing against mobile-first challengers. Curve informed its investors that a share purchase agreement had been executed, with an official announcement expected imminently.
Founded in 2015, Curve offers an all-in-one payments card and consolidated wallet that allows users to link multiple bank cards, track spending and access rewards through a unified interface. Despite ahead momentum and expansion into over 30 markets across the UK and Europe, the company has faced financial challenges in recent years. The acquisition is viewed by Curve’s board as the most viable option for secureguarding the firm’s future and providing continuity for its customers.
Strategic motives and shareholder response
For Lloyds, purchasing Curve aligns with its strategy to evolve from a traditional bank into a technology-driven financial platform. The integration of Curve’s digital wallet infrastructure gives Lloyds access to an established user base and a modern payment interface capable of delivering enhanced customer engagement. As younger and digitally native consumers continue to shift towards app-based banking experiences, banks such as Lloyds are increasingly investing in fintech capabilities to remain competitive.
The acquisition, however, has sparked criticism from some of Curve’s ahead investors. IDC Ventures, one of the firm’s largest backers, has publicly expressed concern over the valuation, arguing that the £120 million price tag is significantly below Curve’s prior funding valuation. The investor group has suggested that legal action may be considered if the terms are not improved. Curve’s board acknowledged the valuation gap but stated that the sale represents the best overall outcome for shareholders and creditors in light of the company’s operational pressures and market conditions.
Market impact and outlook
The acquisition highlights the accelerating convergence between traditional banking and fintech innovation. As consumer expectations shift towards seamless, integrated financial experiences, established banks are increasingly turning to acquisitions rather than in-house development to keep pace with technological change. By bringing Curve into its ecosystem, Lloyds aims to improve the efficiency of its payment operations, reduce reliance on third-party technology and strengthen its appeal among digital-first customers.
The broader payments landscape is similarly evolving. With large Tech firms and neobanks expanding their financial services, competition is intensifying across digital wallets, payment networks and personal finance tools. Lloyds’ acquisition of Curve may prompt other major banks in Europe to consider similar moves as they viewk to retain market share and capture new revenue streams.
While the deal positions Lloyds to accelerate its digital transformation, successful integration will require careful alignment of compliance frameworks, risk management protocols and product roadmaps. If executed effectively, the acquisition could enhance Lloyds’ long-term competitiveness and reshape its role within an increasingly digital financial ecosystem.
