Singapore-based cross-border paytech Nium has become the first non-Japanese company to secure a Type 1 Funds Transfer Service Provider (FTSP) license from the Japanese Financial Services Agency (JFSA).
This license authorises 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. Nium claimed it is the first global firm to meet the license standards, which few companies have been able to meet.
“As a result, businesses have had little or no choice but to use traditional high-cost, low-speed options for cross-border payments,” the Singaporean paytech said.
With the license now in hand, it will be able to offer “transparent” costs and “significantly cheaper” rates to businesses, it added.
“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,” commented Anupam Pahuja, executive vice president of Asia Pacific, Middle East and Africa at Nium. “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.”
The news follows Nium securing regulatory approvals across the Asia market, including in India, where it was recently granted in-principle approval for two payment licenses.
As Nium expands its operations in Japan, it said it hopes to foster local partnerships and contribute to the growth of the Japanese fintech ecosystem.
