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 Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term 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."

Breaking News: Nium is the first global fintech to secure Japan's Type 1 FTSP license from @JFSA_en. Nium can now offer transfers of up to 50M JPY, giving our customers a way to transfer more money faster, cheaper and more transparently. More here: https://t.co/N8LofXyASS#Japan pic.twitter.com/PYnwUpLx1K

— Nium (@NiumGlobal) February 28, 2024

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 Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term 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.