Brown, Cony and the gang are coming to a credit card near you in Japan. Line, the messaging app company behind the cute sticker characters, announced today that it is bringing its payment service to plastic through a tie-in with Visa.
Line is Japan’s largest chat app with an estimated 50 million registered users. The cards will be released later this year and they’ll allow Line Pay, the company’s digital wallet service, to stretch beyond its existing merchant base to allow users to pay at any retailer accepting Visa . In addition, the first year of use will see customers get 3 percent of their spending back in Line’s ‘Points’ virtual currency, which is used to buy stickers and other content.
The partnership is a step up from Line’s own payment cards, which were introduced in 2016 and supported by JCB.
It’s an interesting deal because mobile is generally seen as being the future form factor for payments. In China, for example, using cash or card to pay is considered antiquated — you’ll get glares from other patrons forced to wait while you complete your transaction — but digital payments face a struggle in most other markets.
WeChat and Alipay have become de facto in China, but retailers — and particularly smaller ones — don’t always have the awareness, confidence or resources to add support for Line or other digital wallets. Japan, where cash is still king, is perhaps most emblematic of that struggle. The government is making a sustained push towards cashless — particularly ahead of the 2020 Olympics — and Line, as the country’s dominant chat app, may help that along with this partnership.
Line wrapped up a deal with WeChat last November that allows users of the China-based chat app to make payment via Line Pay points of sale. Tencent’s WeChat and Alipay from Alibaba have spent recent years developing a system that lets Chinese tourists pay while they are overseas.