LINE Pay made its debut on the Taiwan stock market today, with a listing price of NT$348 per share. The opening price jumped to NT$450, and it closed at NT$1,030, a surge of over 196% compared to the listing price. It became the king of the stock market and a high-value stock on its first day.
LINE Pay, perfectly integrated with the popular communication app LINE, has become the leading mobile payment platform in Taiwan. It has 12 million users in Taiwan, with 7 million active users, and the platform’s total Gross Merchandise Volume (GMV) has reached NT$644 billion. LINE Pay is supported by approximately 500,000 stores in Taiwan, making it the most eye-catching stock on the emerging market.
On its first day of listing, LINE Pay achieved multiple astonishing records: it became the king of the stock market, a high-value stock on the first day of listing, ranked 11th among high-priced stocks in Taiwan’s stock market, the third payment stock king, and its market value increased by NT$34.8 billion in a single day.
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 e-wallet services. In addition, through collaboration with banks, LINE Pay issues LINE Points as consumer rewards and has established 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 as rewards, which is the key to LINE Pay’s turnaround.
In 2020, LINE Pay suffered a loss of NT$280 million, 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 to NT$440 million, with 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 earnings per share of NT$7.92. Its stock price has now exceeded NT$1,000, easily surpassing a price-earnings ratio of 100 times.
LINE Points connect the application scenarios of payment, marketing, and consumption. Users receive point rewards when they use LINE Pay with their bound credit cards, attracting many users to participate. This provides merchants with sufficient incentives to purchase points and attract users to redeem them. LINE Pay charges fees to merchants and card-issuing banks through the points, while also generating 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, Ding Hsiung, the Chairman of LINE Pay, clearly stated, “LINE Pay’s positioning is not just a payment tool.”
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