Lloyds Banking Group has today announced a strategic partnership with cloud-native payments technology fintech Form3 to accelerate its digital transformation.

Through the partnership, Lloyds plans to investigate and develop a cloud-native Payments-as-a-Service platform using Form3’s technology.

In addition, Form3 aims to simplify Lloyds’ payment capabilities and create the basis for the bank’s response to the industry New Payments Architecture (NPA) initiative. It also hopes to provide support for enhanced data and new overlay services.

Otto Benz, Director of Payments Technical Services at 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.”

Accelerating digital transformation 

Form3 was founded in 2016 to simplify payments architecture capabilities, in a faster and more efficient manner.

As part of the alliance, Lloyds has acquired a minority equity stake in Form3 through the fintech’s next investment round, which is expected to complete in August.

Michael Mueller, Form3 CEO, 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.”

Lloyds plans to continue to look at further investment opportunities to help accelerate the delivery of its transformation programme. Earlier this year, the group announced collaborations with both Google Cloud and Microsoft, as part of its bid to transform digitally.