iPASS MONEY raises ¥300M in Strategic

iPASS MONEY has secured a ¥300 million investment to bolster its electronic payment capabilities. This development follows its separation from LINE Pay last year, establishing iPASS MONEY as an independently operated entity. The funding round, approved earlier this year, will be directed towards marketing efforts to expand its electronic payment platform, according to iPASS MONEY's General Manager Cheng Kai-yin. Cheng noted the strategic decision to maintain growth and transition from losses to profitability rather than scaling down operations.

The recently completed funding round saw the share price adjusted from the previous ¥15 to ¥10, a revision influenced by fluctuations in the sector's stock prices and aimed at rewarding current shareholders. Shareholders have expressed strong support for the company's expansion plans, emphasizing growth trajectories over the previous collaborations with LINE Pay.

Since its split from LINE Pay, iPASS MONEY has faced challenges, notably the loss of transaction fees from LINE partnerships and the absence of payment transfers through LINE’s chat feature. This has resulted in a decrease in transfers and stored value amounts. Reintegrating into transaction channels previously connected through LINE Pay is expected to take between six to twelve months.

Despite these setbacks, Cheng remains committed to an aggressive expansion strategy. He noted that iPASS MONEY uniquely benefits from investments by both central and local governments, aligning closely with various government policies. The company is also leveraging its proprietary app to merge physical stored value card management with digital payment functions, an approach Cheng believes distinguishes iPASS MONEY from competitors.

Moving forward, an IPO remains a consideration, but profitability is a prerequisite. Internally, iPASS MONEY has a timeline for achieving this milestone but does not anticipate an IPO within the current year. The company plans to further enhance its point economy, integrating the "Green Points" system with net-zero carbon policies and expanding consumer redemption opportunities, signalling its continuous efforts in sustainable growth initiatives.