This article explores the strategic motivations behind Lloyds Banking Group’s rumored acquisition of Curve, arguing that the real prize is not a simple payments technology, but the ability to redefine the modern bank account.
With over 30 years’ experience designing payment solutions for major banks and fintechs, including leading the architecture for UK Faster Payments, Tom Hay is a senior manager at PSE Consulting. Lloyds Banking Group’s rumoured acquisition of Curve highlights the growing strategic importance of digital wallets. In this article, Hay explores the possibilities, arguing that the true value lies not in simple contactless technology but in Curve’s unique multi-funding capabilities, which could empower Lloyds to redefine the modern bank account.
Lloyds Banking Group’s rumoured £120 million acquisition of Curve underlines a critical shift in the payments landscape. In a world where Google Pay and Apple Pay have set consumer expectations for seamless and secure card management, strategic investment in digital wallet innovation is no longer optional. The move raises a key question: is Lloyds buying a technology, its customers, or a bridge to an entirely new kind of bank account?
Beyond Contactless Payments
At first glance, the interest could lie in Curve Pay, a proprietary tap-to-pay solution that offers an alternative to Apple Pay and Google Pay. For Lloyds, this presents the tantalising possibility of bypassing the significant fees that Apple levies on transactions made through its wallet.
However, weaning customers off Apple Pay is a monumental task, given its deep integration and famously loyal user base. Lloyds would be competing not just with a wallet, but with the entire Apple experience. Furthermore, if a simple NFC solution were the goal, Lloyds could acquire the underlying technology directly from its provider. This suggests that Lloyds’ interest runs deeper than contactless payments alone.
The Core Advantage: Multi-Funding Flexibility
The more likely answer is that Lloyds is interested in Curve’s wallet funding capabilities. Curve’s core proposition has always been its ability to support multiple funding sources—debit, credit, BNPL, and even Open Banking—all fronted by a standard card. Unlike other wallets that require pre-funding, Curve enables real-time transactions directly on the chosen funding source.
For Lloyds, this could mean offering a virtual card through its app that allows users to select their payment type before a purchase or even switch it afterwards. Using smart rules, customers could direct different transaction types to specific funding sources—for example, paying for groceries via debit while putting flights on a credit card or BNPL plan. Lloyds could embed its own products to bypass interbank fees while also integrating offerings from partners.
The Road Ahead: Redefining the Bank Account
The ultimate opportunity here is not just to build a better wallet, but to redefine the bank account itself. Instead of forcing customers to juggle a current account, a credit card, and separate BNPL offers, Lloyds could provide a single, flexible account that intelligently adapts to each transaction.
This would also allow Lloyds to reclaim significant BNPL volumes from third-party players by embedding its own BNPL functionality across any merchant. Combined with the high level of trust in the Lloyds brand, a digitally native, flexible account of this kind would be a powerful proposition for the future of retail banking.
