Lloyds Bank will become the main "card aquiring partner" for British payments company PayPoint Group, as part of an expanded partnership expected to launch fully in the third quarter of the year, PayPoint said in a statement on Wednesday.

PayPoint said the agreement includes "significant investment" into Lloyds' card payments business, Cardnet.

The partnership will offer merchants expanded banking and card services combining card payments, a 12-month fee-free Lloyds business account among other benefits, PayPoint said, improving support for its small business and retailer customers. (Reporting by Elizabeth Howcroft, editing by Sinead Cruise)