Line Explores Cryptocurrencies for Payment Services

Line Corp. is working to integrate cryptocurrencies into its messagingplatform as the Tokyo-based company seeks to differentiate its products and services, according to people with knowledge of the matter.

The messaging provider is in discussions with multiple companies on using cryptocurrencies for payment services including Line Pay, said the people, asking not to be identified because the information isn’t public. The broader goal is to create products that keep users within Line’s ecosystem and keep them coming back to the app, increasing "stickiness," they said.

Line shares earlier surged 10 percent on Tuesday to a record in Tokyo on speculation that it was looking to tie up with South Korean bitcoin exchange Upbit. A representative for Line declined to comment on a potential alliance with Upbit. Shares slid 1.9 percent Wednesday.

Line, with a market value of 1.2 trillion yen ($10.6 billion), joins a growing list of businesses looking to capitalize on both the technology and the hype surrounding bitcoin and other cryptocurrencies. By integrating digital money services deeper with its app, the company is seeking to fend off challenges from larger rivals like Facebook Inc. and Snap Inc.

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