Nium Becomes First Global Fintech to Penetrate Japan's Walled Garden

by Damian Chmiel
  • Singapore's Nium got Japan's first global fintech license for large financial transactions.
  • The new license allows up to 50M JPY transfers, promising faster, cheaper payments.
Japanese garden

The Singapore-based fintech company Nium has been granted a Type 1 Funds Transfer Service Provider (FTSP) license by Japan's Financial Services Agency (JFSA). Nium is the first global fintech firm to receive regulatory approval, which enables large-scale money transfers directly into Japanese bank accounts.

Fintech Company Nium Receives Regulatory Approval for Money Transfers in Japan

Specifically, the license allows Nium to conduct up to 50 million JPY transactions per transfer through Zengin-Net, Japan's domestic payments network. Compared to traditional banking methods, the capability promises to facilitate faster and cheaper payments between Japan and overseas markets.

The licensing achievement comes after the JFSA eased restrictions in 2021 for Type 1 designees to drive down the high costs of cross-border money transfers. However, the rigorous regulatory standards have thus far limited approvals to just a few entities until Nium met the criteria.

"This is a pivotal moment that promises to enhance the efficiency and cost-effectiveness of transactions between Japan and other key regions," said Anupam Pahuja, Nium's EVP for Asia Pacific, Middle East & Africa. "We look forward to empowering banks and businesses worldwide to access the speed, transparency and lower fees that have long been missing from this market."

In 2022, Nium doubled its revenues and reported a visible upsurge in its transaction volume, managing over USD 12 billion annually. Currently, the company anticipates another doubling of its numbers in 2023.

Nium Grows in APAC

Nium's approval represents a breakthrough for non-bank payment platforms in providing large-value fund transfers, a capability traditionally exclusive to banks. The licensing aligns with Nium's broader expansion strategy across the Asia Pacific, on the heels of other recent regulatory wins that further reinforce its leadership in modernizing global payments infrastructure.

Ian Ilseok Suh, the CEO of South Korea's MOIN, said the enhanced transactional efficiencies between Japan and Korea will significantly benefit customers. Industry observers view Nium's milestone as a watershed moment for both the company and fintech sector in enhancing cross-border payments.

Moreover, the achievement is set to spur new partnerships and growth in Japan's burgeoning fintech ecosystem. Nium said it remains dedicated to upholding security, compliance and customer service even as it redefines the landscape for financial services.

In the most recent update, Nium has expanded its partnership with Ebury, the fintech company specializing in transactions for SMEs. Together, Nium and Ebury aim to facilitate fast, reliable, and affordable cross-border payments to and from Brazil.

The Singapore-based fintech company Nium has been granted a Type 1 Funds Transfer Service Provider (FTSP) license by Japan's Financial Services Agency (JFSA). Nium is the first global fintech firm to receive regulatory approval, which enables large-scale money transfers directly into Japanese bank accounts.

Fintech Company Nium Receives Regulatory Approval for Money Transfers in Japan

Specifically, the license allows Nium to conduct up to 50 million JPY transactions per transfer through Zengin-Net, Japan's domestic payments network. Compared to traditional banking methods, the capability promises to facilitate faster and cheaper payments between Japan and overseas markets.

The licensing achievement comes after the JFSA eased restrictions in 2021 for Type 1 designees to drive down the high costs of cross-border money transfers. However, the rigorous regulatory standards have thus far limited approvals to just a few entities until Nium met the criteria.

"This is a pivotal moment that promises to enhance the efficiency and cost-effectiveness of transactions between Japan and other key regions," said Anupam Pahuja, Nium's EVP for Asia Pacific, Middle East & Africa. "We look forward to empowering banks and businesses worldwide to access the speed, transparency and lower fees that have long been missing from this market."

In 2022, Nium doubled its revenues and reported a visible upsurge in its transaction volume, managing over USD 12 billion annually. Currently, the company anticipates another doubling of its numbers in 2023.

Nium Grows in APAC

Nium's approval represents a breakthrough for non-bank payment platforms in providing large-value fund transfers, a capability traditionally exclusive to banks. The licensing aligns with Nium's broader expansion strategy across the Asia Pacific, on the heels of other recent regulatory wins that further reinforce its leadership in modernizing global payments infrastructure.

Ian Ilseok Suh, the CEO of South Korea's MOIN, said the enhanced transactional efficiencies between Japan and Korea will significantly benefit customers. Industry observers view Nium's milestone as a watershed moment for both the company and fintech sector in enhancing cross-border payments.

Moreover, the achievement is set to spur new partnerships and growth in Japan's burgeoning fintech ecosystem. Nium said it remains dedicated to upholding security, compliance and customer service even as it redefines the landscape for financial services.

In the most recent update, Nium has expanded its partnership with Ebury, the fintech company specializing in transactions for SMEs. Together, Nium and Ebury aim to facilitate fast, reliable, and affordable cross-border payments to and from Brazil.

About the Author: Damian Chmiel
Damian Chmiel
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About the Author: Damian Chmiel
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
  • 1378 Articles
  • 28 Followers

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