LINE Corporation have established LINE Financial Corporation, which comes hot on the heels of establishing LINE Pay, a mobile money transfer and payment service offered on the LINE app. This is in an effort to reinforce its position in the financial business sector. LINE Pay has achieved quite a lot of success with about 450 billion Yen transacted through the service. The company decided to establish LINE Financial to have even more of an impact on the financial services sector.
LINE will use this service to allow it establish even more services, including the ability to transact in virtual currencies, insurance, and loans. All of this will take place in the LINE app. The LINE app is renowned for its high level of security. However, it aims to continue research into technologies such as blockchain to bolster the security of its services. The company is actively hiring people with expertise in blockchain technology and the financial sector.
What Are its Objectives?
The company aims to position itself as a fintech leader as the world gradually shifts towards a cashless society. The company has already applied for licensing from Japan’s Financial Services agency to help it launch its new company. The company expects to make its services available to its over 168 million users globally.
This announcement was made hot on the heels of news that over $500 million worth of the altcoin NEM had been stolen from Coincheck, a leading digital coin exchange in Japan. The theft has been reported to be as a result of a hack on its servers.
The LINE pay service has already attracted over 40 million people globally and, as already stated earlier, transaction volumes have been about $4 billion thus far. In comparison, Coincheck, one of the largest exchanges globally, only has about 13 million users. If this move is successful, it could make LINE one of the biggest exchanges in the world for digital coins.
Besides this, the fact that LINE already has a lot of financial muscle could help it create a multi-feature digital coin exchange within the app in just a short while. It is also worth noting that Japan has some of the best-developed digital coin exchanges in the world. Thus, getting the expertise to help it set up a virtual currency exchange within the LINE app is not going to be a problem.
The app has faced major competition from apps like Facebook’s WhatsApp in recent years. However, with its new adjoined products, this app could finally turn the tables on its competitors. In-app payment services are quite common in messaging apps in South East Asia. However, WhatsApp has been slow to adopt the service.
What do you think about the potential launch of new services by LINE? Leave us your thoughts in the comments section below.