LINE Pay: A window to Payments in Japan

SME Fintech Opportunity in the Developing Countries

LINE Pay: A window to Payments in Japan by Sam Ghosh 18th March 2021
LINE Pay - Products and Channels LINE Pay - Growth LINE Pay - Finances
LINE Pay - The Company

LINE Pay - The Company LINE Pay - Products and Channels LINE Pay - Growth LINE Pay - Finances
Parent Company LINE Corporation
Founding 2014 in Tokyo, Japan
Business Payments
Total Funds Raised US$182 million
Users ~39 million registered users as of Feb’ 2021. MAU of 5.6 million as of Q3 2020
Investors LINE Corporation
Market Global (Currently users are concentrated in Japan, Taiwan, Thailand, and Indonesia)

LINE Pay - The Company: Corporate Structure

LINE Pay - The Company: Leadership
Yonsu Ko 高永受
Chairman and CEO, LINE
Pay
Takeshi Idezawa 出
澤剛
CEO of LINE Corporation
Director, LINE Pay
Chofuku Hisahiro
長福久弘
COO and Director, LINE
Pay

LINE Pay - Products and Channels

LINE Pay - Products and Channels: Products
Products
For Consumers For Merchants
LINE Pay eWallet Payment Acquisition
Visa LINE Pay prepaid card
Visa LINE Pay Credit Card
Print QR
LINE Pay's Apple Pay
LINE Pay Store App
LINE Pay payment link
Online Payment
Starpay
Payment at POS cash
Register

LINE Pay - Products and Channels: Products: For Consumers: LINE Pay eWallet: QR Code Payment
App Generated QR Code Payment - The payer generates the QR
code using the LINE Pay app and the payee scans it.
Reading Storefront QR code Payment - The payer scans the
printed QR code at the storefront.
There are two types of QR codes- Variable amount and Fixed
amount,
In the case of the variable amount, the payer needs to enter the
amount after the scan. In the case of the fixed amount, the amount
gets pre-filled.

LINE Pay - Products and Channels: Products: For Consumers: LINE Pay eWallet: QUICPay (Google Pay)
Payment at QUICPay (Google Pay) member stores. Only available for Android devices.

LINE Pay - Products and Channels: Products: For Consumers: LINE Pay eWallet: Online Payment
Registration with LINE profile required. No need to enter the delivery address (just confirmation) at the time of purchase.

LINE Pay - Products and Channels: Products: For Consumers: Visa LINE Pay prepaid card (Virtual Card)
Virtual prepaid card with no fees or annual membership fee. Can be used at VISA online merchants, Apple Pay and Google Pay registered merchants.

LINE Pay - Products and Channels: Products: For Consumers: LINE Pay’s Apple Pay
Registration is done by setting Visa LINE Pay prepaid card to Apple Pay.
Payment using iPhones, iPads, Apple Watches, and Macs that support Apple Pay.

LINE Pay - Products and Channels: Products: For Consumers: VISA LINE Pay Credit Card
International VISA Credit Card which can be used in 200 countries and regions around the world.
No annual fee in the first year. 1,250 yen from the second year.
3% redemption of LINE points. VISA touch payment is possible.

LINE Pay - Products and Channels: Products: For Merchants: Payment Acquisition: QR Code Based

LINE Pay - Products and Channels: Products: For Merchants: Payment Acquisition: LINE Pay Store App
The merchant logins to be payment app -> Enters the amount -> Reads the customers QR code -> Payment completed
Settlement fee: Currently free. After August 1, 2021, 2.45% + Tax

LINE Pay - Products and Channels: Products: For Merchants: Payment Acquisition: LINE Pay payment link
Payment link sent via chat.
Settlement fee: Currently free. After August 1, 2021, 2.45% + Tax

LINE Pay - Products and Channels: Products: For Merchants: Payment Acquisition: Online Payment
API based. Removes friction from the shopping experience - no need to enter card details.
Settlement fee = 3.45% + Tax (Product sales / services)
= 5.50% + Tax (Digital Content)

LINE Pay - Products and Channels: Products: For Merchants: Payment Acquisition: Starpay
Installation cost = 38,000 yen
No Monthly cost

LINE Pay - Products and Channels: Products: For Merchants: Payment Acquisition: at POS cash Register
LINE pay modifies the POS registers to make them capable of reading QR codes and barcodes
No Installation cost
No Monthly cost

LINE Pay - Products and Channels: Channels: LINE Ecosystem
The LINE Ecosystem* has around 167 million monthly active users as of Q3 2020. The users are spread around Japan, Taiwan, Thailand, and Indonesia.
*comprising of a Global Messenger, Stickers and Creators Market, Games, News, Healthcare, Music, AI Assistant, etc.

LINE Pay - Products and Channels: Channels: Store Map
The app comes with the geo-map of the stores accepting LINE pay, accepting different coupons, and offering deals. The tool helps increase store
footfalls/visits.

LINE Pay - Products and Channels: Channels: Campaign
Campaigns of coupons are used to increase store footfalls.

LINE Pay - Growth

LINE Pay: Growth: Customers
LINE Pay App
(Google Play + Apple)
~39 million registered users as of Feb’ 2021. MAU 5.6 million as of September 2020
Transaction Volume 1.5 trillion Japanese Yen or US$13.8 billion (@1JPY = US$0.0092) in the 4 quarters from Q4 of 2019
to Q3 of 2020.

LINE Pay - Finances

LINE Pay - Finances: Transaction Volume
The quarterly transaction volume of LINE Pay was at 459 billion Japanese Yen or US$4.2 billion (@1JPY = US$0.0092) as of Q3 2020. This represented a
60% increase from the same quarter in 2019.
In the 4 quarters from Q4 of 2019 to Q3 of 2020 total transaction volume of LINE Pay was at 1.5 trillion Japanese Yen or US$13.8 billion (@1JPY =
US$0.0092).

Thank You
Disclaimer:
Some of the images used in this document are property of LINE
Pay Co., Ltd. and used under the Fair Use doctrine.
Data provided and used here are from publicly available
sources. The author does not guarantee the accuracy of the
information mentioned in this document.
This document is not an investment prospectus and does not
constitute in any way advice for investment-related decisions.

LINE Pay: A window to Payments in Japan

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LINE Pay: A window to Payments in Japan