Line Thailand is partnering with Hua Seng Heng, the leading gold trader in the country, to boost its online gold savings service which employs the bot assistant of Line Finance.
The service, which marked the gold savings feature's world debut for Line Finance, is aimed at helping the Thai people prepare for retirement by saving more.
According to Ariya Banomyong, managing director of Line Thailand, only 1.4 million Thais are invested in the stock market and fewer than 2 million are invested in long-term equity funds or retirement mutual funds.
He quoted figures showing less than 3% of the population is invested in the stock market or mutual funds.
Gold is a savings asset that can penetrate the mass market as a tangible and stable currency. But buyers have to physically travel, wait in queues at stores and bring cash, which is inconvenient and time-consuming.
"Thai people value gold as a guarantee of wealth and they buy it as gift for their family members on many occasions," Mr Ariya said. "By partnering with Hua Seng Heng, Line is providing an alternative way for gold savings to a broad group of users."
With Line, he said, users can register, do real-time trading and make secure transactions through online payment.
Tanarat Pasawongse, the 60-year-old chief executive of Hua Seng Heng Group, said gold offers better yield than deposit accounts even though the popularity of digital currencies like Bitcoin is on the rise.
Gold market in Thailand has a great opportunity to grow and today and there are over 8,000 gold shops nationwide, which get crowded when the gold price drops.
To venture into the gold market, a minimum investment of 100,000 baht is required.
The popular social media app currently has 10,000 active users dealing in gold every month and the deal with Hua Seng Heng is expected to increase the number greatly as it will allow the trader an access to 41 million Line users. Line Finance also has 4.3 million users.
Line allows users to purchase gold from minimum 1,000 baht to a maximum of 200,000 baht per day through a paper-based membership or its own mobile application.
"We are bringing technology and innovation in to help customers buy gold more easily," said Mr Tanarat.
Mr Ariya said Line users can add a Line Finance account by sending a scanned copy of their national ID card and bank account information.
Email and PIN verification will be required for security when buying, selling or withdrawing a gold order. Money will be transferred into a user's registered bank account within one working day after the user's request is complete.
