LINE Pay Taiwan Limited (hereinafter referred to as "LINE Pay") was established in 2015 and primarily operates in the third-party payment services sector, offering transaction processing services for buyers and sellers. LINE Pay is dedicated to becoming an integral part of users' everyday lives by consistently promoting the accessibility and convenience of mobile payments. Through offering diverse payment experiences and various rewards, LINE Pay seeks to enhance user engagement and attract new customers. At the same time, the company actively deepens its partnerships with collaborators and financial institutions, focusing on providing innovative payment services and driving the development of fintech solutions. With a multifaceted growth strategy, LINE Pay continues to expand its market share in the payments industry.
Core Focus in Payments: Expanding High-Value Financial and Marketing Services
LINE Pay has built a comprehensive presence across both online and offline payment channels in Taiwan, offering consumers a wide array of convenient payment options. In addition, LINE Pay partners with domestic banks to issue credit and debit cards that offer LINE POINTS as cashback rewards, allowing users to earn rewards with every purchase. For merchant partners, LINE Pay provides the LINE Pay Partner App and a range of marketing services, helping businesses leverage mobile payments to drive new opportunities. By integrating payment solutions, financial services, and marketing strategies, LINE Pay is creating a complete ecosystem, with LINE POINTS playing a central role in fostering a continuous, positive cycle of transactions between consumers and merchants.
Consumers not only benefit from the convenience of making payments at a wide network of partner merchants but can also use the LINE POINTS they accumulate for future purchases within the LINE Pay ecosystem. This ongoing engagement strengthens user loyalty, encouraging customers to continue using LINE Pay to accumulate points in future transactions. For merchants, becoming a LINE Pay partner not only increases payment convenience but also boosts customer retention through the LINE POINTS system. This system helps reduce customer acquisition costs and enhances repurchase rates. Merchants can further optimize their marketing efforts using LINE Pay’s tools, such as LINE POINTS, coupons, and targeted advertising, to reach potential customers, increase conversion rates, and attract high-value, loyal consumer groups. This creates a strong incentive for merchants to use LINE Pay and LINE POINTS for both payment processing and marketing.
LINE Pay works with a diverse range of merchants, which are categorized into seven key sectors: Dining, Shopping, Beverages, Lifestyle, Transportation, Entertainment, Beauty, and Tourism. While the service is primarily used by large retail chains, LINE Pay is also actively expanding its reach to small and medium-sized enterprises, helping these businesses accelerate their digital transformation. With LINE Pay, smaller merchants can easily access a variety of store management features and enjoy a one-stop platform for marketing services.
Third-Party Payment Core Business: Ongoing Optimization and Expansion into Cross-Border Transactions
The core of third-party payment services is to act as an intermediary between buyers and sellers, earning service fees by facilitating payment collection and disbursement. The primary revenue source for LINE Pay is transaction fees earned from third-party payment services. Every time a consumer makes a purchase at a LINE Pay-affiliated merchant, LINE Pay collects a transaction fee based on the amount spent.
LINE Pay is committed to continuously optimizing the user experience and providing innovative services. This includes the integration of e-invoice services, the development of membership card points accumulation features, and streamlining the checkout process. In 2023, LINE Pay introduced support for barcode payments via smartwatches, further enhancing the convenience of mobile payments. With the rapid growth of mobile payments, driven by changing consumer habits, LINE Pay anticipates a higher market penetration and greater usage. Additionally, with the increasing volume of global trade and international travel, third-party payment platforms are well-positioned to provide faster and more secure payment channels, significantly reducing barriers to cross-border transactions.
Financial Promotion Partnerships: Strategic Value and Strengthening Competitive Advantages
Financial promotion partnerships represent the second key growth driver for LINE Pay. By issuing credit and debit cards that offer LINE POINTS as cashback rewards in collaboration with banks, LINE Pay not only taps into a high-margin revenue stream but also strengthens its competitive edge through the unique benefits of LINE POINTS. LINE Pay has already partnered with four leading local banks to issue credit cards offering LINE POINTS as rewards, with the total number of cards issued exceeding 8 million. By integrating these services within the LINE Pay ecosystem—from acquiring new customers (card applications, card binding) to engaging and retaining customers (spending, increasing loyalty)—LINE Pay offers a seamless, all-in-one credit card service. The company will continue to expand its financial product offerings, deepening its collaborations with banking partners to further strengthen its market position.
LINE Pay’s Technological Expertise
LINE Pay boasts a team of over 100 engineers, with all payment technologies and platform services developed in-house. The company also has experience securing payment licenses across four countries. LINE Pay leverages AI technology to analyze transaction data, identify potential users, and recommend tailored products and merchants. Additionally, augmented reality (AR) technology is applied to the "Good Deals Map" service, allowing users to view the locations and product details of partner merchants that match their preferences via their smartphone cameras. LINE Pay’s research and development capabilities are robust enough to handle significant data traffic and process large volumes of information efficiently.
Future Outlook
Currently, LINE Pay has over 12.7 million users, covering more than half of Taiwan’s population. The number of registered cards linked to LINE Pay exceeds 18.3 million, while the total number of co-branded and cashback credit cards issued in partnership with domestic banks has surpassed 8 million. These figures reflect the high level of trust and satisfaction that users have placed in the LINE Pay ecosystem.
Looking to the future, LINE Pay will continue to deepen its domestic services, integrate payment solutions, fintech innovations, and marketing resources, and enhance the user experience to create a more complete LINE Pay ecosystem for both consumers and merchant partners. LINE Pay's ambitions extend beyond Taiwan, with plans to expand cross-border payment capabilities, enabling Taiwanese users to use LINE Pay while traveling abroad, and attracting international visitors to use LINE Pay in Taiwan, creating a seamless two-way cross-border payment experience.
LINE Pay also plans to further utilize AI and AR technologies to analyze consumer behavior and payment preferences, optimizing marketing resources and providing merchants with precision marketing tools. The Good Deals Map will be upgraded to help Taiwanese merchants attract international tourists, delivering a truly seamless cross-border payment experience.