Line Corporation, which operates a mobile messaging service, is entering the financial technology (fintech) arena by establishing a unit offering insurance, loans, and cryptocurrency services.
The firm, which is listed in both Japan and the US, already offers a money transfer and payments service called Line Pay. However, on Wednesday, it announced that it would launch a new division called Line Financial Corporation, which will allow users to trade digital currencies and other financial services using the Line app,
CNBC reported.
Line said that it will also engage in researching blockchain technology through this new unit. According to the company, its payments unit grew significantly in 2017, with global transactions valued at ¥450 billion (US$4.1 billion) and 40 million registered users.
Other online platforms have also ventured into the financial services sector. In October, Weimin Insurance Agency, which is majority-owned by Chinese internet services giant Tencent, was granted a licence by the China Insurance Regulatory Commission. The agency will offer insurance products through Tencent’s social media and messaging services such as WeChat and QQ.
Experts, such as Aviva’s Chris Wei, have said that online platforms such as Tencent, Google, and Facebook have the potential to cause the most disruption in the insurance industry.
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