Nium Secures Type 1 Funds Transfer Service Provider License in Japan

Published about 2 months ago

Nium, a leader in real-time cross-border payments, 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).

A Milestone in Cross-Border Payments

The Type 1 license permits Nium to offer a broad spectrum 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.

An amendment was made to Japan’s Payment Services Act in 2021, allowing Type 1 license holders to lower the cost of money transfers into and out of Japan by lifting cross-border transfer caps. Yet, meeting the high standards for regulatory approval has proven challenging for many companies, forcing businesses to resort to traditional high-cost, low-speed options for cross-border payments.

Nium: First Global Company to Meet Type 1 Standards

Nium stands as the first global company to meet the Type 1 license standards. The JFSA acknowledged its capacity 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 restrict cross border transfers to only 1 million JPY.

Nium’s Commitment to Compliance and Transparency

Anupam Pahuja, Executive Vice President of Asia Pacific, Middle East, and Africa at Nium, highlighted the wider impact of this achievement, indicating that Nium now offers a reliable global alternative for large value transfers into and out of Japan.

This accomplishment demonstrates Nium’s commitment to compliance, transparency, and regulatory excellence. It signifies a crucial juncture for the company as it broadens its reach and enhances its capabilities in the dynamic markets across the Asia Pacific.

Fostering Partnerships and Expanding Operations

As Nium expands its operations in Japan, it anticipates forming local partnerships and contributing to the growth of the Japanese fintech ecosystem. The company remains committed to building trust with its users and partners by prioritizing security, compliance, and customer satisfaction.

Nium recently announced other regulatory approvals across the Asia market, including in India. It seeks to facilitate more real-time transactions and seamless financial interactions between strategic regions in the world, aligning with its commitment to redefine global financial services.