Line Man Wongnai and Line Thailand aim to seize emerging e-payment opportunities, leveraging synergies within their business ecosystem to foster substantial growth in their respective businesses.
Last month, the firms revealed their joint acquisition of stakes in Rabbit Line Pay Co (RLP) from the preceding shareholders, RabbitPay System Co and Advanced mPAY Co. This transaction enables Line Man Wongnai to become the predominant shareholder of RLP.
As per the Bank of Thailand’s data, the volume of e-payments in Thailand surged from 20 billion transactions in 2021 to 28 billion in 2022.
Simultaneously, the monetary value of these transactions witnessed a significant increment, climbing from 39 billion baht in January 2022 to 46.6 billion baht by December of the same year.
“We see growth in e-payment opportunities in Thailand. To acquire shares from the existing shareholders in RLP will be a major milestone for our growth,” mentioned Yod Chinsupakul, chief executive of Line Man Wongnai.
Based on information from Creden, a website specializing in business analytics performance, Rabbit Line Pay is backed by three principal shareholders: Advance mPay, Line Pay Corporation in Japan, and RabbitPay System Co, each maintaining an equal stake of 33.33%.
Following the acquisition, Mr. Yod alongside Mr. In Young Chung, the chief financial executive of Line Man Wongnai, will assume the roles of the new CEO and CFO of RLP, respectively.
This acquisition intends to integrate RLP payment functionalities more closely into the Line ecosystem, encompassing Line Man, Line Shopping, Line App, and Wongnai’s merchant community.
This revamped ownership model will foster innovation in RLP and facilitate a smoother integration within Line Man Wongnai’s offerings and the broader Line framework. There won’t be any noticeable alterations for RLP consumers stemming from this shift in ownership.
They will retain the ability to utilize RLP payment options through existing platforms, including the BTS Skytrain ticket service and Advanced Info Service’s bill compensation features.
“We want to use our strength of over 10 million Line Man and Wongnai users, over 500,000 merchants, and over 100,000 riders to create a coherent transaction experience for all stakeholders.”
“With the addition of RLP, we believe Line Man Wongnai is uniquely positioned to help digitalise the Thai economy,” Mr Yod remarked.
He disclosed that this is a subsequent acquisition endeavour for Line Man Wongnai, succeeding their recent acquisition of Foodstory.
“We are open for organic growth, acquisition and partnership, and paving the way for Line Man Wongnai’s IPO [initial public offering] by 2025,” Mr. Yod articulated.
Mr. Yod announced that the firm is gearing up to collaborate with more partners to stimulate RLP’s growth along with the introduction of new services and various new online and offline payment opportunities.
RLP has maintained a significant stance among Thai e-payment consumers, offering a vast spectrum of online and offline payment avenues.
It provides streamlined payment solutions, encompassing a secured digital wallet and expedited payment alternatives for buying, fund transfers, or account top-ups.
Currently, RLP has a user base of 10 million individuals, who can be persuaded to employ the Lineman application and other Line services.
Mr. Yod mentioned that the objective of Line Man Wongnai is to lead RLP towards profitability shortly.
Based on data from Creden, in 2022 RLP garnered a gross revenue of 1.2 billion baht, albeit reporting a net deficit of 105,370 baht.
“This new structure will enable more synergy in the Line ecosystem in Thailand with 54 million users, mainly Line Shopping and other services,” stated Phichet Rerkpreecha, the head executive of Line Thailand.
Mr. Phichet conveyed that Line is capable of aiding the government’s upcoming digital wallet initiative through RLP’s existing payment infrastructure or utilizing Line’s blockchain technology from Japan.
Mr. Chung mentioned that the purchase would permit Line Man Wongnai to reduce financial transaction expenses by up to 50%.