Line dives head first into payments, taxi hailing, and on-demand food delivery

Takeshi Idezawa, COO of Line, kicked off his presentation at Line Conference Tokyo 2014 today with a simple message. “The keyword of our future is ‘life’ […] Line is the smartphone gateway for your life.”

Line’s push to bridge the gap between its users’ online and offline lives is crystallized in a bold new offering – Line Pay.

Line Pay works like most next-generation payment applications. Items can be purchased on mobile or PC. It also has a personal aspect – users can transfer cash to each other without needing bank account information.

The cash comes from being tied to a credit card or a pre-paid card. The pre-paid option is a smart nod to Japan’s surprisingly low credit card usage rate. Early partners are two of Japan’s largest financial institutions, Mizuho and SMBC.

For security, Line is trying to take no chances. Users will not be able to use their standard account password for Line Pay. iOS users will also have the option of using Apple Touch ID. In addition to the separate password, any attempt to access Line Pay from a computer will result in two-step authentication where a password is entered to the computer and then a separate authorization code sent to person’s smartphone will then need to be recorded as well.

Idezawa said that Line Pay will be a global service in the near future but the pre-paid cards will not be immediately available. He also promised that the service will be very competitive on a commission basis. “We will try to have the lowest [rate] in the industry,” he said.

Looking to the future, Line Pay will gain functionality to send cash to overseas contacts. Line Pay Points, a loyalty scheme, will also be added.

Payments as an entrance to new industries

Line Pay, itself an intriguing strategic offer, will be Line’s weapon of choice for entering into battle with Uber now and in the future.

Idezawa also announced Line Taxi, a taxi-hailing service hooked up to Line Pay. Users can call a cab using that taxi’s official Line account. With GPS, they can call the cab to their specific location and see the waiting time.

In Tokyo, Uber teamed up with local cab services to offer boost the supply of cars. Line has
learned from that trick and taken it a step further. The company has teamed up with Nihon Kotsu, the top taxi corporation in Japan. It has 22,000 taxis at its beck and call but Line Taxi, like Uber, will only be available in Tokyo to start. It will launch this winter with an expected global rollout next year.

Finally, Line Pay will also tie up with Line Wow, a delivery service. Via a joint venture with
Woowa Brothers, Line is stepping into the delivery logistics game starting this autumn. At first, the service will only be available for food deliveries and limited to the Shibuya area of Tokyo. Similar services, like the newly-funded Dely, take will likely take note and prepare for some stiff competition.