Provider of real-time cross-border payments Nium announced today that it has secured a Type 1 Funds Transfer Service Provider (FTSP) licen
Provider of real-time cross-border payments Nium announced today that it has secured a Type 1 Funds Transfer Service Provider (FTSP) license from the Japanese Financial Services Agency (JFSA).
The Type 1 license authorizes Nium to provide a wide range of financial services, including transferring up to 50 million JPY per transaction via Zengin-Net, Japan’s local payment clearing rail, to a Japanese beneficiary account.
In 2021, an amendment to Japan’s Payment Services Act lifted cross-border transfer caps for Type 1 license holders, to lower the cost of money transfers in and out of the country. However, since this amendment passed, few companies have been able to meet the high standards for regulatory approval. As a result, businesses have had little or no choice but to use traditional high-cost, low-speed options for cross-border payments.
Most other non-bank entities, including Money Service Businesses, hold Type 2 licenses, which limits cross border transfers to only 1 million JPY.
Anupam Pahuja, Executive Vice President of Asia Pacific, Middle East, and Africa at Nium, commented:
“Previously, only banks could transfer large funds, but today, Nium becomes the first true global alternative for large value transfers into and out of Japan. We look forward to empowering banks and businesses worldwide to do more commerce with Japan by providing the speed, efficiency, and transparency of payments that has long been missing from this important global market.”
As Nium expands its operations in Japan, it anticipates fostering local partnerships and contributing to the growth of the Japanese fintech ecosystem. The company remains dedicated to building trust with its users and partners by prioritizing security, compliance, and customer satisfaction.
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