Lloyds to take minority stake in payments fintech Form3
The minority stake is part of a broader strategic partnership between Lloyds and Form3.
Lloyds Banking Group is acquiring a minority stake in payments fintech Form3, as part of a broader strategic deal aimed at improving the banking giant’s payment processes.
Founded in 2016, Form3 is a UK-based cloud technology provider of Payments-as-a-Service for banks and other financial institutions.
A key current focus for Form3 is providing support for the New Payments Architecture, the UK payments industry’s proposed new way of organising payments between banks.
According to Form3, the deal with Lloyds will simplify the banking giant's payments capability, meaning Lloyds can develop a cloud-based Payments-as-a-service platform.
The deal, it says, will also help in the banking giant's response to the NPA initiative and beef up its data services.
No details of the size of the stake acquired by Lloyds or financial details of the deal, which is expected to complete next month, have been disclosed.
Oliver Benz, director, Payments Technical Services, Lloyds, said: “Simplifying payments architecture while enhancing security and performance are critical to our digitisation of the group.”
“The potential of the cloud in payments is enormous and is firmly at the forefront of our strategy.”
"We are committed to working with the most innovative technology providers, including Form3, to deliver a range of solutions that push the boundaries of what’s possible while reducing risk and providing customers with an improved digital experience.”
Michael Mueller, CEO, Form3, said: “We believe this is an opportunity to support Lloyds’ transformation using our rapidly evolving technology.”
“The partnership is breaking new ground in collaboration by enabling Lloyds to utilise best in class software built to harness the unique properties of the cloud.”