Line Pay seeks to become lifestyle platform

Line Pay CEO Ko Young-su / Courtesy of Line Pay

Mobile payment firm expands ties with startups, merchants to boost ecosystem

By Park Hyong-ki

Line Pay is moving to become more than just a mobile payment service provider, according to Line Pay Chief Executive Ko Young-su.

The Japan-based tech company said it is seeking to become a platform where people can not only be able to make financial transactions, but also play music, listen to the radio, read the news, get the latest on the weather and interact with other people.

Line will invest $180 million this year to develop fintech services and optimize the Line Pay platform for both users and merchants.

"Our focus is to provide a seamless and convenient service customized to users' needs and preferences," Ko said in an email interview.

"We are aiming to become the world's leading smart portal, a one-stop mobile lifestyle platform that enables people to connect to all information, services, products and other people in their lives."

Line Pay is part of Tokyo-based Line, a popular mobile messenger in Japan and some markets in Southeast Asia. It has more than 4.3 million monthly active users globally, according to the company.

It was launched in 2014 in line with the Japanese government's efforts to promote a cashless society.

Japan's Ministry of Economy, Trade and Industry is pushing to increase the use of digital payment applications and credit cards to 40 percent by 2025, currently from 20 percent.

"Aligned with Japan's vision to realize a cashless society, our mission is to close the distance between people, money and services," Ko said.

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Overseas ventures

It will also carry out its mission in overseas markets such as Taiwan and Thailand via partnerships, he added.

Line Pay has strategically invested in Taiwan-based iPass Corp., a provider of smart cards and an electronic wallet application that can be used to pay for public transportation and goods at convenience stores.

The number of Line Pay iPass accountholders has reached 1.45 million in Taiwan, Line Pay said.

There are more than 6 million Line Pay users, and 120,000 merchants accept it for mobile payments in Taiwan, according to Marketech International.

In Thailand, Line Pay established a joint venture with BTS Group, the operator of public bus and elevated train systems.

Also, it has a joint venture with Advanced Info Service (AIS), Thailand's biggest mobile operator, to boost mobile payments.

"In Thailand, we have partnered with public transportation to broaden our services that our users need every day," Ko said.

"Both BTS Group and AIS have a strong determination to providing cashless payment services to people in Thailand."

Ko added Line Pay will further expand its alliances to contribute to a cashless society in Japan, Taiwan and Thailand.

The company currently has startup accelerator programs both in Taiwan and Thailand to help Line Pay boost its ecosystem.

"We are actively providing gateways to startups in accessing technologies and attracting investments," Ko said.

"Line has Line ScaleUp accelerator program to help Thai startups to get technical consultation and go overseas. In Taiwan, we have Line Protostar program to help startups there to scale their businesses by using Line's technologies and platform."

Blockchain for next growth

The company said it has built a digital token platform called Line Token Economy using blockchain technology.

It also launched a blockchain-based question and answer service called Wizball, aimed at boosting knowledge sharing.

"We plan to optimize the token platform to share value and promote mutual growth as we continue to transform in the new digital era. We will further develop blockchain technology with small- and medium-sized developers as well," Ko said.

"Blockchain, AI and fintech will drive the next growth of our strategic businesses."

Line characters

Line Pay's fintech affiliate Line Financial has forged ties with a number of commercial banks as it seeks to launch internet banks in Japan and Taiwan.

Line Financial has partnered with Mizuho Financial Group in Japan, and Taipei Fubon Bank, CTBC Bank, Standard Chartered Bank Taiwan and Union Bank of Taiwan.

Its aim is to provide financial services that are "more appropriate to digital customers of the smartphone generation."

Ko said he does not have an immediate plan to connect or integrate the company's mobile payment service with Line Financial's internet banking.

But he added it could be possible in the future.

"We do not have any specific plans yet, but we are always open to any possibilities," he said.

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