Line to launch a banking service with Mizuho Bank

TOKYO – Line announced Tuesday it will enter the banking sector by 2020 in collaboration with Mizuho Bank, while the Japanese application developer takes a new step in the sector.

The two companies will create a new entity in spring 2019 with a capital of 2 billion yen ($ 17 million), with 51% of the capital of Line Financial and the rest for Mizuho Bank.

Line was eager to expand her financial services. After the creation of Line Financial in January, she launched Line Smart Invest and Line Insurance in October, using her Chat Line app as a platform. Users can use such services starting with a small amount of money.

The company is also preparing to offer other securities, loan services and payments. It will partner with Tencent Holdings to offer a smartphone payment service to Chinese tourists in Japan from 2019. This agreement will allow payment via WeChat Pay in small and medium sized establishments and restaurants.

Meanwhile, Mizuho expects the new service to encourage younger customers to use its services. "We would like to approach younger generations that investment banks generally do not know," said Toshitsugu Okabe, vice chairman of the board of directors of Mizuho Financial Group, parent company of Mizuho Bank.