● Card-specific rewards to be ended in pursuit of an even more developed cashless and walletless society
● Integrated reward program to be implemented in June to promote smartphone payments
TOKYO – March 30, 2018 – LINE Pay Corporation announces that it will change the rewards offered as a part of its smartphone wallet service, "LINE Pay," available through the LINE messaging app to further promote the shift towards a cashless and walletless society.
The current LINE Pay Card rewards that grant users 2% of the amount of their payments back in LINE Points (2 Points for every JPY 100) will end on May 31, 2018. In the new program tentatively starting June 1, LINE Pay plans to make code payments, a feature that allows users to make payments with only a smartphone, a central part in order to promote even greater use of smartphone-based payments. The integrated reward program will grant users up to 2% back in LINE Points for using any of the LINE Pay services. The LINE Pay Card may still be used, even after transitioning to the new program.
Last year, the Japanese government announced its strategy to make payment methods other than cash to be accepted everywhere by 2020, and increase the share of cashless payments to 40% within the next 10 years. This strategy includes the government’s vision to make use of payment transaction data as cashless payment methods become widely accepted at an increasing number of establishments as a result of reduced infrastructure costs and fees associated with payments.
LINE Pay also believes that a world in which purchases can be made with just a smartphone would be beneficial to both users and merchants alike, and continues to develop its cashless and walletless payment business. For 2018, the company has set a business goal for itself of reaching one million LINE Pay merchants that accept code payments within the year, and has been continuously implementing the service at major convenience stores, drug stores, restaurant chains, and more. LINE Pay plans to make use of its position as a mobile payment service provided by LINE, a part of Japan’s communication infrastructure, and will continue to make further announcements as more merchants implement the service.
"LINE Wallet," a financial service gateway, was added during a recent update to the LINE messaging app. LINE Pay is accelerating its efforts to build a cashless and walletless society by greatly reinforcing its connections as LINE Wallet's central service.
End of LINE Pay Card Reward Program
The LINE Pay Card was first issued starting in March 2016 as a pre-paid card with no sign-up or annual membership fees that allowed users to use their LINE Pay balance to make payments at JCB-affiliated merchants anywhere in the world. Considering that it was still in the early days before social awareness of smartphone-based mobile payments took off, the LINE Pay Card was started in order to raise awareness of LINE Pay among users and stores alike, and make a hassle-free shopping experience for users who were unable to use LINE Pay in the places where they shopped. Under these circumstances, the decision was made to grant rewards only on the amount of money spent using the LINE Pay Card as the initial step to boost awareness of LINE Pay.
In pursuit of its vision of a world in which purchases can be made using only a smartphone, LINE Pay has decided to introduce a new program that also grants Points for non-LINE Pay Card payments to encourage even more users to use code payments and other features. In conjunction with this change, the LINE Pay Card reward program that grants users 2% of the amount of their payments back in LINE Points (2 Points for every JPY 100) will end on May 31, 2018.
Users can continue using their LINE Pay Card as a part of the new reward program. However, the rate of LINE Points granted will change as a result of the launch of the new reward program on June 1, 2018.
The new program starting June 1, 2018 will replace the card-specific rewards and begin rewarding users for using any of the LINE Pay services, with a focus on code payments. Users will be granted up to 2% back in LINE Points depending on the extent to which they use the services offered by LINE Pay. An announcement will be made as soon as further details have been decided.
Going forward, LINE Pay will be actively holding special promotional campaigns to grant rewards to users who make code payments.
Under LINE's corporate mission of Closing the Distance, LINE Pay strives to reduce the many inconveniences of cash transactions faced by users – in terms of reducing time and labor involved, addressing fees, and more – in hopes of bringing people, their money, and services closer together. As the world moves increasingly towards becoming a cashless and walletless society, LINE Pay aims to become a leader in the mobile FinTech industry and build a world in which all monetary transactions can be handled entirely through LINE.
LINE Pay Corporation Overview (as of December 11, 2017)
Company name: LINE Pay Corporation
Location of head office: JR Shinjuku Miraina Tower, 23F 4-1-6 Shinjuku, Shinjuku-ku, Tokyo
Representative: Yongsu Ko, Representative Director and Chief Executive Officer
Total capital: JPY 2.950 billion
Established: May 9, 2014
- Issuance, sales, and management of e-money, other e-currencies, and advance payment methods, provision of digital payment systems, and funds transfer
- Sales and operation of LINE@
- Service development
- Advertising agency
LINE Pay Corporation has become a registered member of the following organizations in association with the launch of its business:
- Issuers of Prepaid Payment Instruments for Third-Party Business (Registration number: Kanto Director General 00669, Registration date: October 1, 2014)
- Funds Transfer Service Providers (Registration number: Kanto Director General 00036, Registration date: October 1, 2014)