Nium, a real-time cross-border payments firm based in the United States and Singapore, has achieved a significant milestone by becoming the first non-Japanese company to be granted a Type 1 Funds Transfer Service Provider (FTSP) license by the Japanese Financial Services Agency (JFSA).
The license enables Nium to perform financial services including transactions up to 50 million JPY ($333,861) directly into Japanese beneficiary accounts via Zengin-Net, Japan’s local payment clearing system.
This development follows a 2021 amendment to Japan’s Payment Services Act, which aimed to reduce the costs associated with money transfers by lifting cross-border transfer caps for Type 1 license holders.
Despite the regulatory easing, the high standards set by the JFSA have meant that few companies have managed to secure approval, leaving businesses reliant on traditional, slower, and more expensive cross-border payment methods.
Nium’s achievement in meeting the rigorous requirements for a Type 1 license is a testament to its commitment to compliance, transparency, and regulatory excellence.
The company has distinguished itself by integrating with local payment rails, offering real-time transactions, and providing significantly lower rates compared to traditional banking options.
Until now, such large-value transfers were predominantly the domain of banks, with most non-bank entities, including Money Service Businesses, only holding Type 2 licenses that limit transfers to 1 million JPY.
Anupam Pahuja, Executive Vice President of Asia Pacific, Middle East, and Africa at Nium, expressed enthusiasm about the company’s new capability to facilitate larger value transfers, stating:
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 granting of the Type 1 license to Nium not only enhances its service offerings but also marks a significant expansion of its capabilities in the Asia Pacific region, positioning Nium as a key partner in major financial corridors.
The firm has also received other regulatory approvals across Asia, including in India, where it was granted in-principle approval for two coveted payment licenses, further demonstrating its commitment to modernizing global payment infrastructures.
Ian Ilseok Suh, Chief Executive Officer of MOIN, highlighted the broader implications of Nium’s new license, anticipating more efficient and cost-effective transactions between Korea and Japan, which will greatly benefit customers and partners alike.
As Nium expands its footprint in Japan, the company is eager to foster local partnerships and contribute to the growth of the Japanese fintech ecosystem, reinforcing its dedication to security, compliance, and customer satisfaction in the global financial services landscape.