In a significant strategic move, Lloyds Banking Group has announced the acquisition of London-based financial technology firm Curve, marking a major step in the high street bank's digital transformation journey.
A Digital Power Play
The deal, revealed on Wednesday 19th November 2025, represents Lloyds' ambitious attempt to strengthen its digital capabilities and better compete against popular challenger banks that have been attracting tech-savvy customers. Curve, founded in 2015, operates as a digital payment wallet that consolidates multiple payment methods, including debit cards, credit cards and even cryptocurrency, into a single platform.
With over six million users and processing billions of pounds annually, Curve brings substantial digital expertise to Lloyds' operations. The banking group stated that the acquisition will provide customers with enhanced payment flexibility and access to innovative features previously unavailable through traditional banking services.
Strategic Benefits and Financial Details
Customers can look forward to several benefits from the combined offering, including the elimination of foreign exchange fees, the ability to switch past purchases between different accounts, and access to 'pay later' solutions. Although official terms remain undisclosed, Sky News had previously reported that Lloyds would pay approximately £120 million for the fintech.
The transaction is expected to finalise during the first half of 2026, pending regulatory approvals. Lloyds confirmed that the acquisition isn't anticipated to significantly impact the bank's full-year financial guidance, despite shares falling 1.15 per cent in early trading as investor concerns about the upcoming Budget persisted.
Addressing Market Challenges
This acquisition forms part of Lloyds' broader strategy to become more digitally focused amid increasing competition from neobanks like Revolut and Monzo. The group has been gradually closing high street branches to redirect investment toward its mobile banking app and developing new technologies, including 'digital twin' innovation.
For Curve, the sale follows a challenging period where auditors raised concerns about the platform's ability to continue operating. The Paddington-based company had been working to reduce losses through significant measures, including cutting its workforce by more than a third and suspending American operations to conserve capital.
Despite raising over £40 million in funding during 2024, Curve reported a pre-tax loss of £36 million for the 2023 financial year. However, company executives remained confident about securing additional funding, with rumours of the Lloyds sale first emerging in July.
Curve has described the acquisition as a 'partnership rooted in shared ambition' to deliver simpler, more intuitive digital banking experiences for customers across the UK.
