To support the partnership, Lloyds is also acquiring a minority equity stake in Form3 as part of its next investment round, expected to be completed in August.
In the past three years, Form3 has focused on simplifying payments architecture through cloud-native payments technology. In doing so, it supports the U.K.'s New Payments Architecture initiative through a payments-as-a-service platform.
“We believe this is an opportunity to support Lloyds’ transformation using our rapidly evolving technology," Michael Mueller, CEO at Form3, said in a Wednesday press release. "The partnership is breaking new ground in collaboration by enabling Lloyds to utilize best-in-class software built to harness the unique properties of the cloud.”
The partnership will enable Lloyds to develop a cloud-based payments platform, which it says will make the processes more efficient. Its work with Form3 follows other partnerships established this year, including those with Google Cloud and Microsoft, as part of its commitment to digital platforms.
“Simplifying payments architecture while enhancing security and performance are critical to our digitization of the group," Otto Benz, director of payments technical services at Lloyds Banking Group, said in the release. "The potential of the cloud in payments is enormous and is firmly at the forefront of our strategy."
