Acquisition Positions Japanese Social Media Company for Payments
Feb. 12, 2015
Line, a Japanese company that operates a messaging app, this week acquired WebPay, a Tokyo startup that enables online and mobile merchants to accept credit cards. WebPay, which raised $1.5 million last year, has been characterized by published reports as the Stripe of Japan. Line said the acquisition will be used to solidify its Line Pay business, which currently enables users of its chat service to purchase digital content. The company has wider payment ambitions.
Line said it wants to use the WebPay technology as the basis for a platform that will enable it to offer online payment for other merchants and for physical goods in addition to digital.
“Line will endeavor to build a solid foundation for the LIFE platform by leveraging the payment system technologies and know-how of WebPay to facilitate the enhancement of services, the improvement of usability, and the expansion of business,” the company said in a statement. Terms of the deal were not disclosed.