2018.06.28 LINE Pay
* “LINE Pay for Merchants” app to be available for business operators, no transaction fees starting from this summer
* User incentive program upgraded to accelerate popularization of code payments
TOKYO – June 28, 2018 – LINE Pay Corporation (“LINE Pay”) announces initiatives to popularize its code payment (available through the smartphone payment and wallet service, LINE Pay, within the LINE messaging app) to make payments in Japan cashless and walletless using smartphone devices which have LINE installed.
In order to completely eliminate the initial costs that tends to become a burden for small and medium- sized business operators when introducing a new payment method, LINE Pay today launches the LINE Pay for Merchants app, specifically designed for QR code payments on LINE Pay, which can be downloaded onto a smartphone. Furthermore, no transaction fees will be charged on payments made using the app for three years starting from August 2018.
At the same time, LINE Pay is going to dramatically increase benefits for code payments through its My Level incentive program for users.
LINE Pay for Merchants app: https://pay.line.me/jp/intro/services?locale=ja_JP (Japanese only)
Under LINE’s corporate mission of Closing the Distance, LINE Pay will close the distance between people, money, and services by eliminating the current pain-points – time, effort, fees, and more – of circulating money.
Smartphones have become so widespread today that nearly everyone owns one as an essential device to their daily lives. LINE Pay thus has expanded its operations to date based on the belief that stimulating the circulation of money via smartphone is the right way of bringing a cashless, walletless society into reality. In order to reach the target of one million merchants in Japan that accept payments by smartphone and LINE Pay within this year, “the first year for a cashless society,” LINE Pay is going to promote its business further.
In an attempt to accelerate the popularization of code payments, LINE Pay will launch three initiatives that allow both the merchants considering introducing the payment method and the users to enjoy their benefits.
1. Launch "LINE Pay for Merchants" payment app (Starting June 28)
LINE Pay has offered various ways to implement code payments depending on circumstances and needs of individual business owners: revamping POS terminals for large-scale or franchise stores, and supporting medium- to small-sized stores in installing multi-payment-enabled terminals that can issue receipts. In deploying a new payment method, initial cost and transaction fees have placed a heavy burden on small to medium-sized businesses in particular and posed a major obstacle to making digital payments services gain wide acceptance.
This time, LINE Pay launches “LINE Pay for Merchants” app that can be downloaded onto a smartphone and supports code payments on LINE Pay, which enables all business operators, in particular SMEs, to implement code payments on LINE Pay without any particular difficulties. In addition to a “cash register” feature to accept QR code payments, the app also has a “messaging” feature that allows merchants to link their merchant accounts with the app and send messages to the followers. This will enable merchants to use this app from payment to sales promotion. This is the industry’s first payment app to come with a messaging feature.
Introducing a new payment method has often been regarded as a burden by merchants. However, LINE Pay is aiming to make the app to be an asset for them that will facilitate communication surrounding payment by implementing not only a payment function but also other communication features unique to LINE, and to become a “Payment Communication” app. By making continuous updates based on feedback from merchants, LINE Pay is committed to evolving the app so that it will be able to manage various tasks for store operations in the future.
(1) Cash register feature
The cash register feature enables business operators to accept QR code payments. Once the app is downloaded and the in-app merchant sign-up process*1 is completed , merchants can start processing payments by launching the app, entering an amount to charge from the customer's LINE Pay balance, and scanning a QR-code on the customer's smartphone.*2
(2) Messaging feature
The messaging feature allows merchants to link a merchant account with the app and send up to 1,000 messages per month to friends of their account. Merchants can use this function for sales promotion, such as announcing campaigns or distributing coupons to encourage customers to return to the store. *3
*1: To use the LINE Pay for Merchants app, business operators need to download the app, complete the in-app merchant application process, and go through a screening process.
*2: If a merchant is already using another service for LINE Pay, the merchant ID for the service cannot be used with the LINE Pay for Merchants app. To use this app, please create a new merchant account in this app.
*3: Some services will become available at a later date.
2. No transaction fees for three years when making QR code payments through the LINE Pay for Merchants app (For three years starting from August 2018)
For three years (from August 2018 to August 2021), the company will not charge a transaction fee, usually borne by merchants when accepting digital payments, when using the LINE Pay for Merchants app. This will allow business operators who use the app to accept QR code payments with no initial fees and fee-free for three years.*4
*4: This offer is valid for QR-code payments through the app that are made using a merchant ID issued in the merchant sign-up process in the app.
By eliminating cost that is borne by merchants when they introduce a new payment service, LINE Pay aims to facilitate smooth communication between goods, services, and people, and hopes it will lead to investments for returning profits from business operators to the users.
3. "My Level" system upgrades (Starting August 2018)
In order to make the use of code payments even more beneficial to users, LINE Pau will greatly increase the rewards associated with code payment use under its My Level incentive program. The program will be applied to LINE Pay users once their identity is verified by linking their bank account, which will upgrade their account type from LINE Cash to LINE Money. Once enrolled, users will receive a green, blue, red, or white badge, each representing a different level. Through the program, LINE Pay will promote QR code payments as a payment method with the highest reword.
1. For one year (from August 1, 2018 through July 31, 2019), users with a Green, Blue, Red, or White level badge*5 will receive an additional 3% back in LINE Points on top of the rate displayed for their level when making a code payment using a QR or barcode. By making such payment, green badge holders will be rewarded up to 5% back while 3% for white badge holders who originally received no incentives on LINE Points.
2. For code payments, the current monthly limit (JPY 100,000) on payments eligible for being awarded LINE Points will be eliminated.
*5: Users can check the color of their badge on the LINE Pay top screen. Badges are available in four colors: green, blue, red, and white. This incentive program is available only for the users who have a badge.
Under LINE's corporate mission of Closing the Distance, LINE Pay strives to eliminate the many inconveniences of cash transactions including time, effort, and fees, to bring people, their money, and services closer together. LINE Pay also aims to lead the mobile FinTech world in anticipation of a cashless, walletless society, and build a world in which all monetary transactions can be handled entirely through LINE.
LINE Pay for Merchants app Overview
Name: LINE Pay for Merchants app
Supported devices: iPhone and Android
Supported language: Japanese
Supported region: Japan
Official date of launch: June 28, 2018
Distributor: LINE Pay Corporation
Google Play： https://play.google.com/store/apps/details?id=com.linepaycorp.pos (Japanese only)
LINE Pay for Merchants: https://pay.line.me/jp/intro/services?locale=ja_JP (Japanese only)
LINE Pay Corporation Overview (as of May 2018)
Company Name: LINE Pay Corporation
Location of Head Office: JR Shinjuku Miraina Tower 23F, 4-1-6 Shinjuku, Shinju-ku, Tokyo
Representative: Youngsu Ko, Representative Director and CEO
Capital: JPY 3.6 billion
Established: May 9, 2014
* Issuance, sales, and management of e-money, other electronic monetary value, 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 and obtained the following registrations 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)
- Japan Payment Service Association (http://www.s-kessai.jp , Admission date: August 6, 2014)
List of LINE Pay merchants: https://line.me/ja/pay/merchant