Japanese chat app operator Line Corp announced a tie-up with China’s Tencent Holdings to offer mobile payment services, and plans to set up a bank with Mizuho Financial Group Inc.
Japanese retailers offering Line Pay services will be able to process payments from Chinese tourists using Tencent’s WeChat Pay from early next year, Line said.
Line is also teaming up with Mizuho Financial Group to launch a bank. It will not have any outlets and specialize only in providing services for smartphone users. LINE, which has more than 70 million users in Japan, has been trying to step up its ability to offer payments via smartphone. Company officials hope the tie up with Mizuho will allow it to provide these services and more. Meanwhile, Mizuho hopes to acquire new customers by working with LINE, which has a large user base of young people.
Both companies are also looking at offering loan services.
Japan has been slow to move to cashless payments, with a rush of new entrants like SoftBank Group backed PayPay and Line Pay looking to encourage consumers to use QR code payments.