SoftBank’s Yahoo Japan confirmed it is in talks to merge with Line. This $27 billion union will bring together two of Japan’s largest QR code payment apps. Line operates one of Japan’s most popular messaging app, Line Taxi, Line Pay and among many other services. Yahoo Japan is a household name in Japan with their online advertising business, finance services and more.
The introduction of the Japanese government’s Cashless Japan initiative has led to a significant increase in mobile payments adoption. SoftBank and Yahoo Japan’s smart phone payment services platform, PayPay, has been able to gain 19 million users through aggressive marketing to aid the cashless effort. This merger will enable them to increase their users through the 82 million Japanese users of the Line app.