Curve Joins Lloyds Banking Group: What This Means for Your Cashback and Rewards

In what marks one of the most significant UK fintech acquisitions of 2025, Lloyds Banking Group has agreed to acquire Curve, the London-based digital wallet provider, in a deal valued at £120 million. The acquisition, expected to complete in the first half of 2026 subject to regulatory approval, brings together Britain's largest high street bank with one of the UK's most innovative fintech platforms.

For the thousands of UK-based points collectors who've used Curve to maximise their Avios earnings and cashback rewards, this news raises an important question: what happens to the features we've come to rely on?

Lloyds Banking Group has signed a share purchase agreement to acquire Curve for approximately £120 million. Founded in 2015 by Shachar Bialick, Curve has grown to serve over six million customers across more than 30 markets in the UK and Europe, allowing users to consolidate multiple bank cards into a single digital wallet.

The acquisition price has sparked controversy among some of Curve's early investors, particularly IDC Ventures, which holds a 12% stake. The £120 million valuation represents a significant discount from Curve's 2023 Series C funding round, which valued the company at £133 million. In total, Curve has raised over £250 million since its founding, making the sale price particularly disappointing for early backers.

However, Curve's board acknowledged that the company faced financial pressures and warned it would likely run out of cash in 2025 without the sale. In a circular to shareholders, Curve stated: "We recognise that the value of this transaction falls short of the ambitions we all held for Curve, and we share the disappointment some of you may have in this outcome. Yet, the board strongly believes this transaction represents the best available path forward for Curve's creditors and shareholders as a whole."

For Lloyds, this acquisition is about far more than just buying a struggling fintech – it's a strategic move to compete in the increasingly important digital payments space. With approximately 40% of online transactions in the UK now made via digital wallets, Lloyds has identified an urgent need to reduce its reliance on third-party payment platforms like Apple Pay and Google Pay, both of which charge significant fees to banks.

The timing is particularly strategic. EU regulators have been increasing pressure on Apple to open up its payments ecosystem, and in October 2024, Apple finally enabled access to the NFC chip in iPhones for third-party developers. This regulatory shift creates an opportunity for banks like Lloyds to offer genuine alternatives to Apple Pay and Google Pay.

By acquiring Curve, Lloyds gains immediate access to:

Lloyds operates over 750 branches across the UK, serves more than 30 million customers, and already has 20.9 million mobile app users. The integration of Curve's technology into Lloyds' existing digital infrastructure could create a powerful alternative to the current duopoly of Apple Pay and Google Pay.

Here's where it gets particularly relevant for those of us who've been using Curve strategically to boost our Avios and cashback earnings. Curve has been an incredibly valuable tool for UK points collectors, offering several key features:

As I reported back in September 2024, Curve introduced 1% cashback on all spending outside the UK and Europe. This has been a game-changer for frequent travellers and those who regularly spend in foreign currencies, allowing for effective "double-dipping" when combined with rewards from underlying cards.

For example, you could use your Barclaycard Avios Plus card (earning 1.5 Avios per £1) via Curve and stack the 1% cashback on top. Or combine your Capital on Tap card (1 Avios per £1) with Curve's cashback for enhanced returns on international spending.

Curve has offered some of the most competitive FX rates in the market, with no foreign transaction fees on weekdays (up to certain limits depending on your plan). This has made it an excellent option for travellers looking to avoid the extortionate fees charged by many traditional banks.

One of Curve's most innovative features allows you to switch a transaction to a different payment card up to 120 days after purchase. This has been invaluable for points collectors who realise they could have earned more rewards on a different card, or who need to move spending to hit a minimum spend requirement for a welcome bonus.

Curve offers additional 1% cashback at 12 selected retailers for premium plan users. When combined with the international cashback and rewards from your underlying card, this created opportunities for triple-dipping on rewards in certain circumstances.

This is what everyone wants to know, and unfortunately, we don't have definitive answers yet. According to the official statements, "the integration of Curve Pay, Curve's cutting-edge technology and digital wallet, into Lloyds Banking Group's current digital offering, will allow Lloyds Banking Group to offer its customers an enhanced payments experience within mobile banking."

That language is deliberately vague. It's clear that Lloyds intends to integrate Curve's technology into its existing mobile banking platform, but what's less clear is whether the current Curve card and app will continue to operate as a standalone product, or whether features will be cherry-picked for integration into Lloyds' systems.

Having followed fintech acquisitions closely over the years, I'm cautiously optimistic but realistic. Here's what I think is likely to happen:

In the short term (next 12-18 months), I expect Curve to continue operating much as it does now. The acquisition won't complete until the first half of 2026, and integration projects of this scale typically take years, not months. Lloyds will want to understand what works and what doesn't before making major changes.

Medium term (18-36 months), I suspect we'll see a gradual integration of Curve's features into Lloyds' mobile banking app. The question is whether this will be additive (Curve features being offered to Lloyds customers in addition to existing Curve services) or substitutive (Curve features being absorbed into Lloyds' ecosystem with the standalone Curve product being phased out).

The most vulnerable features are likely to be the cashback offerings. Banks like Lloyds typically have much tighter margins than fintech startups, and sustaining generous cashback rates across a customer base of 30+ million is very different from maintaining them for six million fintech-savvy early adopters. I wouldn't be surprised if we see cashback rates reduced or restricted to certain spending categories over time.

The multi-card aggregation and payment routing technology is more likely to survive in some form, as this is core to what Lloyds is buying. However, it may be restricted to linking other Lloyds Group cards initially, rather than the current open approach that allows you to link any Visa or Mastercard.

The foreign exchange capabilities should remain competitive – this is one area where Lloyds could use Curve's technology to genuinely improve its customer offering and compete with challenger banks like Monzo and Revolut.

If you're currently using Curve strategically as part of your points-earning setup, here's my advice:

The deal won't complete until mid-2026 at the earliest, and major changes are unlikely before then. Continue maximising the current benefits while they're available.

Given the uncertainty around future benefits, I'd avoid committing to long-term premium subscriptions with Curve. Stick with free plans or monthly subscriptions that you can cancel if benefits are reduced.

Don't rely solely on Curve for cashback and FX savings. Make sure you have backup options in place. Consider alternatives like:

If you have upcoming international trips or large foreign currency purchases planned, make the most of Curve's current 1% international cashback whilst it's available. As I've written about previously, Curve can be particularly valuable for business owners making VAT payments through platforms that accept it.

Keep an eye out for official communications from Curve and Lloyds about the integration plans. I'll continue monitoring the situation and will provide updates as more information becomes available.

This acquisition is part of a broader trend of traditional banks acquiring fintech companies rather than building technology themselves. We've seen similar moves from NatWest (acquiring a stake in payment app Tyl) and HSBC (partnering with Bud for data-driven insights).

The challenge for traditional banks is preserving the innovation and customer appeal that made these fintechs successful in the first place. Large banks have historically struggled with this – their compliance requirements, risk appetite, and organisational structures are fundamentally different from nimble startups.

For us as consumers and points collectors, these acquisitions represent both opportunity and risk. On one hand, we could see innovative features from fintechs becoming available to mainstream banking customers. On the other hand, the generous cashback and rewards programmes that fintechs used to acquire customers often get scaled back once they're absorbed into larger organisations with different economics.

The acquisition of Curve by Lloyds Banking Group marks a significant moment in UK fintech history. For Curve, it provides the financial stability to continue operating after facing cash flow pressures. For Lloyds, it's a strategic investment in digital payments technology that could help the bank compete more effectively with both fintech challengers and Big Tech platforms.

For those of us who've used Curve as part of our points-earning strategies, the next 12-24 months will be crucial. I'm hopeful that Lloyds will recognise the value of Curve's innovative features and preserve what makes the platform special, but I'm also realistic about the commercial pressures that could lead to changes in benefits.

My advice? Enjoy Curve's current benefits whilst they last, but don't build your entire rewards strategy around them. Diversify your approach across multiple cards and platforms, stay informed about developments, and be prepared to adapt your strategy as the integration unfolds.

I'll be watching this closely and will provide updates as more information emerges about the integration plans and any changes to Curve's features. In the meantime, if you're not already using American Express cards or Capital on Tap for direct Avios earning, now would be a good time to ensure you have backup options in place.

What are your thoughts on the Lloyds-Curve acquisition? Are you a Curve user worried about potential changes, or optimistic about the possibilities? Let me know on Instagram – I'd love to hear your perspective.

Safe travels, Jack