Fintech PR
Nium Becomes First Global Fintech to Secure Coveted Type 1 Funds Transfer License from Japan’s Financial Service Agency
Global payments leader enables inbound transfers of up to 50 million JPY, offering a faster, cheaper, transparent alternative
SINGAPORE, Feb. 29, 2024 /PRNewswire/ — Nium, the leader in real-time cross-border payments, announced today that it is the first non-Japanese company to have 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.
Nium is the first global company to meet the Type 1 license standards, with the JFSA recognizing its ability to integrate with local payment rails, deliver real-time transactions, provide transparent costs, and offer significantly cheaper rates. 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, expressed the company’s excitement about the broader impact of this achievement, stating, “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.”
This accomplishment reinforces Nium’s commitment to compliance, transparency, and regulatory excellence. It marks a pivotal moment for the company as it expands its footprint and enhances its capabilities in the dynamic markets across APAC. Nium is uniquely positioned to be the partner of choice for several key corridors as it moves forward in its mission to modernize the global payments infrastructure. It recently announced other regulatory approvals across the Asia market, including in India, where it received an in-principle approval for two sought-after payment licenses. Nium seeks to facilitate more real-time transactions and seamless financial interactions between strategic regions in the world. This accomplishment aligns with Nium’s commitment to redefining global financial services by providing users with unparalleled access to secure and innovative payment solutions.
“We are very excited about Nium’s attainment of the Japan Type 1 license. With this license, we anticipate not only real-time money transfers, but also cost-effective transactions, enhancing the overall ease and efficiency of the money transfer process between Korea and Japan. This will enable both MOIN and Nium to better satisfy our customers, which is the most thrilling aspect for us,” stated Ian Ilseok Suh, CEO of MOIN
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.
Find out more here: https://www.nium.com/japan
About Nium
Nium, the leader in real-time, cross-border payments, was founded on the mission to deliver the global payments infrastructure of tomorrow, today. With the onset of the global economy, its payments infrastructure is shaping how banks, fintechs, and businesses everywhere collect, convert, and disburse funds instantly across borders. Its payout network supports 100 currencies and spans 190+ countries, 100 of which in real-time. Funds can be disbursed to accounts, wallets, and cards and collected locally in 35 markets. Nium’s growing card issuance business is already available in 34 countries. Nium holds regulatory licenses and authorizations in more than 40 countries, enabling seamless onboarding, rapid integration, and compliance – independent of geography. The company is co-headquartered in San Francisco and Singapore.
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