Taipei Fubon Bank (台北富邦銀行) board of directors announced on Wednesday that its acquisition of a 19.99% stake in LINE Pay, with a total investment of NT$3.158 billion (US$103.6 million), was approved, Apple Daily reported.
Fubon Bank General Manager Cheng Yao-hui (程耀輝) noted that the Executive Yuan’s target of a 90% penetration rate for mobile payments in Taiwan by 2025 was the impetus for the investment.
In addition, Union Bank of Taiwan (聯邦銀行) announced it would purchase a 10% stake in LINE Pay worth NT$1.58 billion after it receives government approval. The bank plans to launch mobile financial services in cooperation with local merchants, but today’s announcement is only related to mobile payments and has nothing to do with online banking.
LINE Pay is the most popular mobile payment option in Taiwan, followed by Apple Pay. LINE Pay was established on March 4, 2015, and opened for mobile payments later that year. As of this June, it has more than 3 million active users and is accepted at over 73,000 locations.
In February LINE Pay reached an agreement to become the exclusive mobile payment partner for iPASS, and has connected to 30% of active cards. It plans to expand its cooperation with iPASS and credit cards to increase its market share in Taiwan.
Taiwan currently lags behind its neighbors in mobile payment adoption, but the payment option has gained in popularity over the last year.