Line Pay’s Investment in i-Pass Corporation and Its Benefits, Challenges, and Influence on Market
Following the announcement of its investment in iPass Corporation, LINE PAY claimed to roll out new services around summer this year. In late March, there were rumors LINE PAY planned to sell its stakes in order to set up a pure-play online bank. These moves are to heat up competition in Taiwan’s mobile payment market. This report analyzes the benefits and challenges of these two companies’ cooperation while providing insight into the future development of the Taiwanese mobile payment market.
1. BACKGROUND AND CURRENT STATUS
2. BENEFITS OF THE COOPERATION
2.1 For LINE Pay
2.1.1 Expansion of Application Areas and Support Channels
2.1.2 Time and Cost Saving and Freedom from Direct Supervision of FSC
2.1.3 Low Barriers to Entry of Electronic Stored Value Cards Help Grow User Base
2.2 For iPass Corporation
2.2.1 New Segment Expansion to Increase User Base
2.2.2 Long-term Loss Situation Likely to be Terminated
2.2.3 SIM Card Replacement Hassle and Low Maximum Transaction Limite of Electronic Stored Value Cards May be Solved
2.3 Example of Cooperation between Japanese Kyash, Suica, and LINE
4. POTENTIAL CHALLENGES
4.1 Initial Impact on Subscriber Base is Limited
4.2 Uncertainty in Future Solutions
5. POTENTIAL DEVELOPMENT IN TAIWANESE MARKET
5.1 Competitors May Suffer Customer Loss and Restricted Development
5.2 Market Competition May Intensify Due to Copycat Competitors
6. CONCLUSION
Appendix
Glossary of Terms
LIST OF COMPANIES
ADTC
Amazon
Ant Financial
Apple
Asia Pacific Telecom
Audi
AutoNavi
Bank of Taiwan
Beijing Qihua
Cadillac
Cathay
CHB
Cherri Tech
Inc.
Chevrolet
Chunghwa Telecom
Citibank
CTBS
Daihatsu
E.Sun
Easycard
eMapgo
E-safe
Far Eastern
FarEasTone
Firstbank
Ford
Fujitsu
Gamania
GM
Gomaji
Google
Hangsheng
HuaNan
iCash Corporation
iPass Corporation
Jkos Network
KGI Bank
Kyash
Land Bank of Taiwan
LINE
Line Pay
Macrowell
MasterCard
Mega
NavInfo
OnStar
Opel
Paypal
Paytm
PC Home
QiMing
Samsung
Shin Kong
Sinopac
Soft-World
Square
Starbucks
Stripe
Syscom
Systex
Taipei Fubon
Taishin
Taiwan Cooperative Bank
Taiwan Mobile
Tencent
Toyota
TWMP
UnionPay
VISA
Volvo
Walmart
Wisdtek
Wuling
Yahoo!
Yuanta
2. BENEFITS OF THE COOPERATION
2.1 For LINE Pay
2.1.1 Expansion of Application Areas and Support Channels
2.1.2 Time and Cost Saving and Freedom from Direct Supervision of FSC
2.1.3 Low Barriers to Entry of Electronic Stored Value Cards Help Grow User Base
2.2 For iPass Corporation
2.2.1 New Segment Expansion to Increase User Base
2.2.2 Long-term Loss Situation Likely to be Terminated
2.2.3 SIM Card Replacement Hassle and Low Maximum Transaction Limite of Electronic Stored Value Cards May be Solved
2.3 Example of Cooperation between Japanese Kyash, Suica, and LINE
4. POTENTIAL CHALLENGES
4.1 Initial Impact on Subscriber Base is Limited
4.2 Uncertainty in Future Solutions
5. POTENTIAL DEVELOPMENT IN TAIWANESE MARKET
5.1 Competitors May Suffer Customer Loss and Restricted Development
5.2 Market Competition May Intensify Due to Copycat Competitors
6. CONCLUSION
Appendix
Glossary of Terms
LIST OF COMPANIES
ADTC
Amazon
Ant Financial
Apple
Asia Pacific Telecom
Audi
AutoNavi
Bank of Taiwan
Beijing Qihua
Cadillac
Cathay
CHB
Cherri Tech
Inc.
Chevrolet
Chunghwa Telecom
Citibank
CTBS
Daihatsu
E.Sun
Easycard
eMapgo
E-safe
Far Eastern
FarEasTone
Firstbank
Ford
Fujitsu
Gamania
GM
Gomaji
Hangsheng
HuaNan
iCash Corporation
iPass Corporation
Jkos Network
KGI Bank
Kyash
Land Bank of Taiwan
LINE
Line Pay
Macrowell
MasterCard
Mega
NavInfo
OnStar
Opel
Paypal
Paytm
PC Home
QiMing
Samsung
Shin Kong
Sinopac
Soft-World
Square
Starbucks
Stripe
Syscom
Systex
Taipei Fubon
Taishin
Taiwan Cooperative Bank
Taiwan Mobile
Tencent
Toyota
TWMP
UnionPay
VISA
Volvo
Walmart
Wisdtek
Wuling
Yahoo!
Yuanta
LIST OF FIGURES
Figure 1 Mobile Payment Ecosystem
Figure 1 Mobile Payment Ecosystem
