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Investor Discontent Marks Lloyds’ Move
Lloyds Banking Group is close to acquiring Curve, the London-based digital wallet provider, for about £120 million. While the deal would bolster Lloyds’ payments infrastructure and reduce its dependence on Apple Pay and Google Wallet, FinTech Weekly has learned from a source close to the negotiations that investors are far from pleased.
According to this source, Curve’s backers see the reported valuation as a major disappointment, well below expectations set in previous funding rounds. Some executives even resigned from the company’s board of directors during the talks, underscoring the tension between Curve’s past ambitions and its present reality.
This new information highlights the growing friction in fintech consolidation: while banks secure valuable technology, early investors often face diminished returns.
Curve’s Rise and Reset
Founded in 2016 by Shachar Bialick, Curve entered the market with a simple but compelling proposition: combine all debit and credit cards into one digital wallet. Over the years, it expanded its offering with transaction optimization, rewards features, and tools that positioned it as a competitor to Apple Pay.
The startup quickly attracted attention and funding. By 2023, Curve raised £133 million in a Series C round that valued the company higher than the figure now on the table. With backing from investors such as IDC Ventures, Outward VC, and Cercano Management, Curve was once hailed as one of Britain’s hottest fintechs.
Since then, however, the company has faced challenges. It paused its U.S. expansion, reduced staff, and shifted its focus to refining core services in its home market. Still, Curve raised more than £200 million in equity funding across its history, making today’s reported sale price a bitter pill for investors expecting long-term growth.
A Blow to Shareholder Expectations
Our source stressed that the key point of frustration lies in the gap between Curve’s historic valuation and the takeover price. Investors had been banking on a trajectory toward higher growth and possibly a public listing. Instead, the sale at around £120 million implies significant losses for many stakeholders.
The resignation of some executives from the board during discussions reinforces the depth of disappointment. It also signals how contentious such deals can become when valuations fall short of prior expectations.
Why Lloyds Wants Curve
For Lloyds, the acquisition is strategic. The bank operates the UK’s largest branch network and serves millions of customers, but it faces pressure to modernize. Payments have become a frontline in the competition between traditional banks, fintechs, and Big Tech platforms.
By acquiring Curve, Lloyds gains control of a modular payments platform that could reduce reliance on Apple Pay and Google Wallet, both of which charge fees to banks and merchants. Curve’s ability to “intercept” transactions and add programmable features may help Lloyds design differentiated payment experiences.
The deal also aligns with Lloyds’ wider strategy under CEO Charlie Nunn, who has prioritized digital transformation and holds investments in fintechs such as Thought Machine.
Broader Fintech Consolidation Trend
The Lloyds-Curve deal comes at a time when fintech consolidation is accelerating. Traditional banks are buying startups to gain technology, talent, and infrastructure, while startups see acquisitions as a way to ensure survival in a tighter funding environment.
In the UK, regulators are also scrutinizing the dominance of Apple and Google in digital payments. Lloyds’ move to acquire Curve fits into this broader policy landscape, potentially positioning the bank as a domestic alternative in mobile wallets.
Still, for Curve’s investors, the macro context does little to soften the blow of a diminished exit. What was once touted as a possible $50 billion company is now being sold for a fraction of its early promise.
The Road Ahead
Whether Lloyds can integrate Curve successfully and build a competitive digital wallet remains to be seen. For investors, however, the outcome appears sealed: their bet on one of Britain’s most celebrated fintechs is ending with disappointment and board-level departures.
Technology can attract significant capital and attention, but market realities and strategic pivots often reshape the final chapter.
Lloyds and Curve were not immediately available for comment. FinTech Weekly remains open to receiving their comments.
