Lloyds Banking Group in Discussions to Acquire Curve
The largest high street bank in Britain is in talks to buy Curve, a digital wallet provider, amidst growing regulatory pressure on Apple to open its payment services to competitors. Lloyds Banking Group is in advanced discussions to acquire Curve for a sum estimated to be up to £120 million.
Background of Curve
Curve was founded in 2016 by Shachar Bialick, a former Israeli soldier. In 2019, Bialick stated that he expected Curve to be listed on the public equity markets within 10 years, with a valuation of around $50 billion to $60 billion.
Acquisition Discussions
City sources indicate that if the negotiations are successful, a deal could be announced by the end of September. Curve’s discussions with Lloyds are being handled by KBW, part of the investment bank Stifel. The estimated price range of £100 million to £120 million would represent a lower valuation than Curve’s Series C funding round, which was completed in 2023 and valued the company at £133 million.
Funding and Investors
Curve has collected over £200 million in equity since its founding. Its investors include Britannia, IDC Ventures, Cercano Management, and Outward VC. The company has positioned itself as a rival to Apple Pay, initially starting as an app that allows consumers to combine their debit and credit cards into a single wallet.
Strategic Attractiveness
A source close to the prospective deal stated that Lloyds sees Curve as a strategically attractive offer, allowing the bank to penetrate deeper into the payment infrastructure under the management of Charlie Nunn. Lloyds also believes that Curve would be a financially rational asset, as Apple charges consumers for using its Apple Pay service.
Regulatory Environment
In March, the Financial Conduct Authority and Payment Systems Regulator began examining the impact of the growth of digital wallets from Apple and Google, along with the Competition and Markets Authority. This regulatory pressure may influence Lloyds’ decision to acquire Curve.
Expansion and Growth
Lloyds has expanded its technical skills as a key strategic goal and has invested in several FinTechs, including the Bankbox banking-as-a-service platform. The group employs over 70,000 people and operates more than 750 branches across the UK. Curve, led by Lord Fink, the former CEO of MAN Group, offers its users a transformative financial management experience.
Investor Views
IDC Ventures, one of Curve’s investors, has praised the company’s unique technology, which allows it to intercept transactions and provide a seamless customer experience without requiring users to change their payment cards. The news of the conversations between Lloyds and Curve comes ahead of the Chancellor’s expected announcement of plans to strengthen the UK’s FinTech sector.
