LINE Pay officially made its debut on the Taiwan GreTai Securities Market today, with an initial listing price of NT$348 per share. The opening price jumped to NT$450, and it closed at NT$1,030, experiencing a surge of over 196% compared to the listing price. On its first day, it became the king of the GreTai Securities Market and a high-priced stock, with a market value increase of NT$34.8 billion.
LINE Pay, integrated seamlessly with the popular communication software LINE, has become the leading mobile payment platform in Taiwan, ranking first in market share. It has approximately 12 million users in Taiwan, with 7 million active users, and its total Gross Merchandise Volume (GMV) has reached NT$644 billion. The widespread popularity of the platform has made LINE Pay one of the most eye-catching listing cases recently.
On its first day of trading, LINE Pay achieved several astonishing records: becoming the king of the GreTai Securities Market, becoming a high-priced stock on the first day of listing, ranking 11th in the Taiwan stock market, becoming the third payment stock king, and experiencing a price increase of over 100%, resulting in a market value increase of NT$34.8 billion.
The key to LINE Pay’s turnaround from losses to profits lies in the effective utilization of “LINE Points.” LINE Pay is committed to promoting cashless transactions and electronic wallet services. In addition, through cooperation with banks, LINE Pay issues LINE Points as consumer rewards and establishes a marketing platform for merchants, striving to build a comprehensive payment ecosystem in Taiwan. Currently, there are 7 million credit cards and financial cards that offer LINE Points rewards, which is the key to LINE Pay’s turnaround.
LINE Pay incurred losses of NT$280 million in 2020, with a loss per share of NT$5.28. In 2021, it turned a profit of NT$140 million, with earnings per share of NT$2.68. In 2022, its profits doubled, reaching NT$440 million, with earnings per share of NT$8.04. As of the first 11 months of 2023, LINE Pay has already achieved profits of NT$470 million, with earnings per share of NT$7.92. The current stock price surpassing NT$1,000 has easily pushed its price-earnings ratio beyond 100 times.
LINE Points connect the applications of payment, marketing, and consumption. Users who use LINE Pay with their linked credit cards receive point rewards, attracting many users to participate. This provides merchants with sufficient incentives to purchase points and attract users to redeem them. LINE Pay also generates profits through advertising by distributing coupons on LINE Pay or gaining exposure on the “Good Deals Map.” LINE Pay charges merchants and credit card banks for points, as well as earns profits through advertising.
Currently, around NT$7.2 billion worth of LINE Points circulate within the ecosystem each year, with a usage rate of 100%. These points not only replace previous subsidies but also attract users to continue using LINE Pay. By connecting users, merchants, and partner banks, LINE Pay’s Chairman, Ding Xiong, clearly stated, “LINE Pay’s positioning is not just a payment tool.”
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