Introduction to Lloyds Banking Group’s Latest Acquisition
Lloyds Banking Group, Great Britain’s greatest high street lender, is set to announce the takeover of Curve, a provider of digital wallet technology, in a deal worth around £120 million. The acquisition is expected to give Lloyds an advantage in the race to build more intelligent online payment systems.
Background on Curve
Curve was founded in 2016 by Shachar Bialick, a former Israeli soldier, and has been hailed as one of the most promising fintechs in Great Britain. The company has collected over £200 million in equity since its inception and has been positioned as a rival to Apple Pay. Curve’s digital wallet platform allows users to combine their debit and credit cards into a single wallet, providing a transformative financial management experience.
The Acquisition Deal
City sources have confirmed that the terms of the transaction have been agreed, although a formal announcement may be delayed. Lloyds has been in talks with Curve for some time, with discussions taking place as early as July. The acquisition is seen as a strategically attractive offer for Lloyds, as it will allow the bank to deepen its presence in the payments infrastructure.
Regulatory Pressure on Apple
The acquisition comes as regulatory pressure mounts on Apple to open its payment services to competitors. The Financial Conduct Authority and Payment Systems Regulator have launched an investigation into the effects of the growth of digital wallets from Apple and Google. Lloyds believes that Curve’s technology will be a valuable asset in this context, allowing the bank to expand its technical skills and stay ahead of the competition.
Curve’s Growth and Investors
Curve has undergone significant growth since its inception, with the company collecting over £40 million in funding last year. The company has also reduced its employee numbers and put its US expansion on hold. Curve’s investors include Britannia, IDC Ventures, and Cercano Management, the venture capital arm of the estate of Microsoft co-founder Paul Allen.
Lloyds’ Expansion into Fintech
The acquisition of Curve is part of Lloyds’ broader strategy to expand its presence in the fintech sector. The bank has already invested in several fintech companies, including the banking-as-a-service platform Thought Machine. Lloyds employs over 70,000 people and operates over 700 branches throughout the UK, making it one of the largest banks in the country.
Future Plans for Curve
Under Lloyds’ ownership, Curve is expected to continue its growth trajectory, with plans to expand its digital wallet platform and increase its user base. The company’s unique technology, which allows users to intercept transactions and place the customer experience at the forefront, is seen as a key asset in the competitive fintech landscape. With Lloyds’ support, Curve is well-positioned to achieve its goal of becoming a leading player in the digital payments sector.
