Why Lloyds’ Acquisition Of Curve Is Really About Re-Investing The Bank Account

To be attributed to Chris Jones, Managing Director at PSE Consulting:

Lloyds Banking Group’s confirmed £120 million acquisition of Curve marks one of the most strategically significant moves by a UK bank in digital wallets and consumer payments in recent years. While the deal has attracted attention for shareholder disputes and the valuation, far below the £250m+ Curve has raised, its long-term implications for the payments landscape are far more important.

What Lloyds is actually buying

Despite the noise around governance and investor frustration, Lloyds is effectively acquiring a proven, fully-regulated wallet platform that can orchestrate multiple payment types behind a single card or token. This capability is still rare. Banks have focused for years on individual products - current accounts, credit cards, overdrafts, BNPL, e-money but have rarely offered a unified way for consumers to control how they pay at the point of purchase.

Curve’s technology enables precisely that. It supports multi-funding selection at or after the moment of payment, allowing consumers to choose the funding source in real time. It delivers real-time back-to-back transaction processing that links the front-end card to the selected underlying account or credit line. Its smart rules automatically route different types of transactions to different funding sources based on user preferences. And it remains fully compatible with Apple Pay and Google Pay, while also offering Curve’s own NFC tap-to-pay solution.

Rather than a simple digital wallet; it is a funding-orchestration engine that allows a bank to redesign the customer relationship around choice, flexibility, and embedded credit.

Why NFC alone doesn’t justify the deal

Much attention will focus on whether Lloyds is attempting to build an alternative to Apple Pay, particularly as Apple faces increasing regulatory pressure to open up NFC access in Europe. Curve Pay, which provides a proprietary tap-to-pay solution, gives Lloyds optionality, but it is unlikely to be the centrepiece of the acquisition.

Customers already deeply embedded in Apple’s ecosystem are unlikely to switch wholesale to a bank-branded wallet based on NFC alone. If NFC was the only objective, Lloyds could have procured technology directly from providers such as Thales.

The value sits elsewhere.

The real prize: a flexible, next-generation bank account

Curve’s multi-funding rails give Lloyds the opportunity to create a new type of bank account:one where customers choose the best payment method for each transaction - debit, credit, instalments, partner credit lines, or Open Banking without switching between separate cards.

This would allow Lloyds to embed its own BNPL offering across all merchants and reclaim volumes currently flowing to fintech competitors. It could also route more transactions internally, reducing interbank fees and improving economics. The integration of Curve’s technology would help deepen customer loyalty by positioning the Lloyds app as the primary hub for payment decisions, while offering a “smarter” account experience that adapts in real time to each customer’s needs.

In a market where product boundaries are increasingly blurred, this positions Lloyds at the centre of a consumer’s payment decision rather than one card among many.

A sign of the times in fintech

Curve’s shareholders are right to observe that the sale price falls short of earlier expectations. But the environment that allowed Curve to raise £250m no longer exists. Growth-stage fintech valuations have reset dramatically, especially for companies with high operating costs and long paths to profitability.

For Lloyds, however, the timing is ideal. It is acquiring a sophisticated wallet and orchestration capability at a fraction of its replacement cost and doing so at a moment when large banks globally are reassessing their digital wallet strategies in response to Big Tech.

What to expect next

The acquisition signals that Lloyds intends to play a more assertive role in the next generation of consumer payments. If integrated successfully, Curve’s technology could enable Lloyds to deliver a genuinely differentiated digital account. One built around intelligent funding, embedded credit, and a more seamless payment experience.

For UK payments, it is a significant and potentially market-shaping moment.

About the author

Chris manages PSE Consulting’s business and is well known in the UK and EU for his regular insights into payments innovation.  He has spent the last 20+ years leading assignments for major clients during his time at PSE and Accenture. His specialisations include customer proposition development, market entry strategies and enterprise value creation.  Chris is a highly effective communicator, with very strong analytical skills and able to deliver recommendations to C-level clients and company Boards. Chris regularly supports major enterprises, corporates and global digital merchant’s payments bringing new market perspectives and identifying fresh opportunities for innovation and expansion. He has also delivered payment assignments for Fintechs, banks and processors on topics such as: regulatory impacts, new acceptance methods, open banking, BNPL, gateway/acquirer convergence, and opportunities for M&A and inorganic growth. 

About PSE Consulting 

PSE Consulting is a leading global provider of payment advisory services to players across the payments landscape. PSE’s expertise has enabled it to deliver actionable market insights and operational optimisation to senior payments leaders for over 30 years. 

To learn more, visit: https://pseconsulting.com/