Lloyds Banking Group has agreed to indirectly acquire Curve Europe, a Lithuania-registered electronic money institution, in a move that would extend the British lender's fintech footprint on the continent. Financial terms of the deal were not disclosed.
Curve Europe is owned by Curve OS Limited, the UK-based parent of the Curve digital wallet business, and holds a Lithuanian electronic money institution licence. Completion of the transaction is subject to approval from the Bank of Lithuania, the country's central bank and financial regulator.
FINTECH FOOTPRINT WIDENED
Electronic money institutions in the European Union are supervised under a dedicated regulatory regime and are permitted to issue e-money and provide payment services across the bloc, subject to passporting rights. The Curve Europe licence would give Lloyds indirect access to that regulatory perimeter.
For Lloyds, the largest domestic retail and commercial bank in the United Kingdom, the transaction fits with a wider strategic push to build fintech capability alongside its core banking operations. The group has been investing in digital, data and technology as part of a multi-year strategic transformation.
The deal is structured as an indirect acquisition, meaning Lloyds will acquire the entity through a holding structure rather than directly booking the licence on its own balance sheet. Such arrangements are common in cross-border fintech transactions where regulatory approvals and operating models need to be carefully sequenced.
REGULATORY APPROVAL REQUIRED
The transaction is subject to approval from the Bank of Lithuania, which supervises electronic money institutions authorised in the country. Reviews of change-of-control transactions typically assess the financial strength, governance and fitness of the proposed acquirer.
Financial terms of the deal have not been disclosed by the parties. Curve OS Limited, the UK-based parent, remains the owner of the wider Curve group, and the details of how the ownership of Curve Europe will sit within the Lloyds structure will be worked through in the run-up to completion.
The Curve Europe transaction is a bolt-on rather than a transformational deal for Lloyds, whose balance sheet is dominated by UK mortgages, business lending and deposits. But it fits with a broader theme of banks selectively acquiring fintech capabilities to accelerate their digital agendas.
Once the necessary approvals are received, Lloyds will move to integrate the Curve Europe platform. In the meantime, the group and the seller will manage the pre-completion process while regulators in Vilnius consider the change of control.
Lithuania has emerged over the past decade as an important European hub for electronic money institutions and payment firms, with a licensing regime that has attracted a substantial community of fintech operators. Curve Europe's licence therefore sits within a well-established ecosystem of regulated e-money businesses in Vilnius.
Curve, best known for its multi-card digital wallet, has been operating across Europe under its own brand for a number of years. The move of its European e-money entity under Lloyds ownership marks a shift in the group's shareholder base and, subject to approval, adds a bank-backed dimension to its regulatory footprint on the continent.
The transaction has been reported as an indirect acquisition, and further detail on the structure and process will emerge as the parties engage with the Bank of Lithuania and prepare for completion. Lloyds' engagement with fintech assets on the continent is consistent with a wider pattern of large European banks seeking selective exposure to digital payments and consumer-facing technology.