LINE Pay officially debuted on the Taiwan Stock Exchange today, listing at NT$348 per share. The opening price soared to NT$450, and it closed at NT$1,030, a surge of over 196% from the listing price. On its first day, it became the king of the emerging stock market and a highly valued stock.
LINE Pay, perfectly integrated with the popular communication software LINE, has become the leading mobile payment platform in Taiwan with a market share of over 50%. It has 12 million users in Taiwan, with 7 million active users, and a total Gross Merchandise Volume (GMV) of NT$644 billion. The platform is supported by approximately 500,000 stores in Taiwan, making LINE Pay one of the most eye-catching emerging stocks recently.
On its first day of listing, LINE Pay set multiple astonishing records: it became the king of the emerging stock market, a highly valued stock on its first day of listing, the 11th highest-priced stock in Taiwan’s stock market, the third payment stock king, and experienced a more than 100% increase in price, resulting in a market value increase of NT$34.8 billion in a single day.
The key to LINE Pay’s turnaround from losses to profits lies in the effective use of “LINE Points.” LINE Pay is committed to promoting cashless transactions and e-wallet services. In addition, through cooperation with banks, LINE Pay issues LINE Points as consumer rewards and has established a marketing platform for merchants. It aims to build a complete payment ecosystem in Taiwan. Currently, there are 7 million credit cards and financial cards that earn LINE Points, which is the key to LINE Pay’s turnaround.
LINE Pay incurred losses of NT$280 million and a loss per share of NT$5.28 in 2020. It turned a profit of NT$140 million and an earnings per share of NT$2.68 in 2021. Its profits doubled in 2022, reaching NT$440 million and an earnings per share of NT$8.04. As of the first 11 months of 2023, LINE Pay’s profit has reached NT$470 million, with an earnings per share of NT$7.92. With its stock price surpassing NT$1,000, its price-to-earnings ratio easily exceeds 100 times.
LINE Points connect the application scenarios of payment, marketing, and consumption. Users receive point rewards when using LINE Pay with a linked credit card for purchases, attracting many users to participate. This provides merchants with sufficient incentives to purchase points to attract user consumption and to distribute coupons through paid advertisements on LINE Pay or exposure on the “Good Deals Map,” increasing exposure. LINE Pay generates revenue by charging fees to merchants and credit card-issuing banks through points and also earns profits through advertising.
Currently, approximately 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, the Chairman of LINE Pay, Ding Xiong, stated clearly, “LINE Pay’s positioning is not just a payment tool.”
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