Britain’s largest bank is finalizing plans to buy a stake in Bink, a fintech firm that lets customers ditch their plastic loyalty cards.
Sky News understands that Lloyds Banking Group is set to invest millions of pounds in return for a minority stake in Bink, which was formed in 2015.
Bink has signed a number of business partners, including Harvey Nichols, Iceland, and Japanese food chain Wasabi, since its launch.
It works by linking consumer payment cards to the loyalty programs of participating retailers and entered its first major banking partnership with Barclays in 2019.
Barclays reportedly invested around £ 10million in Bink at the time, giving seven million UK retail banking customers access to the app.
It was unclear on Monday how much Lloyds planned to invest in the business, or at what valuation.
Their partnership should be launched during the first half of the year.
Bink is also expected to raise additional capital from existing shareholders alongside the Lloyds injection.
Although small in size, Lloyds’ investment in Bink will underline the continued boom in the UK fintech sector, with billions of pounds raised by companies last year.
Bink is chaired by Bob Wigley, who also chairs UK Finance, the most influential trade association in the banking industry.
Lloyds declined to comment, while Bink did not respond to a survey.