Lloyds Banking Group is in advanced discussions to acquire Curve, the London-based fintech firm, in a deal that could be valued at up to £120 million, reported Sky News, citing sources familiar with the matter.
If negotiations are concluded successfully, an announcement may come as early as the end of September.
Curve, founded in 2016 by former Israeli special forces soldier Shachar Bialick, began as a mobile app that allowed users to consolidate multiple debit and credit cards into a single digital wallet.
Over the years, the company has positioned itself as a potential rival to Apple Pay, offering users a broader range of tools for financial management and transaction optimisation.
Lloyds has identified Curve as a strategically important acquisition target as the bank intensifies its focus on payments infrastructure and technology-driven services under CEO Charlie Nunn.
The report said Lloyds sees Curve not only as a way to expand its digital capabilities but also as a financially rational move, particularly in light of the growing costs associated with third-party digital wallets like Apple Pay, which charge fees to users and merchants.
Valuation below previous funding round
If the reported price range of £100 million to £120 million proves accurate, it would reflect a lower valuation than Curve’s last funding round.
In 2023, the company concluded a Series C round at a valuation of £133 million, backed by investors such as IDC Ventures, Britannia, Cercano Management (linked to the estate of Microsoft co-founder Paul Allen), and Outward VC.
The company reportedly raised over £40 million last year while also cutting back on staff and pausing its planned US expansion.
In total, Curve has raised more than £200 million in equity funding since its inception. The company is currently being advised on the potential deal by KBW, a unit of investment bank Stifel.
Despite not reaching the ambitious valuation of $50 billion–$60 billion forecast by founder Bialick in 2019, Curve has continued to evolve.
Its core technology, which enables it to “intercept” transactions and apply user benefits such as rewards or fee reductions, has helped differentiate it in the crowded digital payments space.
Lord Stanley Fink, former CEO of Man Group and a long-time investor in British tech firms, currently serves as chair of Curve.
On his appointment in January, Lord Fink praised Curve’s transformation from a basic card-combining tool into a “transformative digital wallet” and noted his commitment to supporting the next stage of its growth.
Fintech sector in the spotlight
The potential acquisition comes at a time of renewed government interest in strengthening the UK’s fintech sector.
Chancellor Rachel Reeves is expected to unveil new proposals aimed at promoting innovation, including a concierge service to connect start-ups with investors.
Lloyds, which employs more than 70,000 people and operates over 750 branches across the UK, already holds stakes in various fintech firms, including ThoughtMachine, a banking-as-a-service platform.
Expanding its technological capabilities remains a key strategic objective for the bank as it navigates a rapidly evolving financial services landscape.
The acquisition of Curve would represent a significant step in that direction, giving Lloyds access to innovative payments technology while enhancing its competitive position against digital giants like Apple and Google in the mobile wallet space.
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