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

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

Time Stamp: February 29, 2024 4:37 AM
Source Node: 2501739

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.

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.

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.

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