Nium secures Type 1 FTSP licence from JFSA

As per the information detailed in the press release, the Type 1 licence is set to enable Nium to offer a wide range of financial services, including transferring up to USD 333,288 (JPY 50 million) per transaction via Zengin-Net, the region’s local payment clearing rail, to a Japanese beneficiary account.

In 2021, Japan conducted an amendment to its Payment Services Act that allowed cross-border transfer caps for Type 1 licence holders to be lifted, which decreased the cost of money transfers in and out of the country. However, since the amendment passed, hardly any companies were able to meet the standards for regulatory approval. This resulted in businesses needing to leverage traditional high-cost, low-speed options for cross-border payments.

At the time of the announcement, Nium was the first global company to meet the Type 1 licence standards, with the JFSA acknowledging its ability to integrate with local payment rails, provide real-time transactions, offer transparent costs, and deliver lower rates. According to Nium’s officials, previously, only banks could transfer large funds, however, the current announcement allows the company to become a global alternative for increased value transfers into and out of Japan. Nium intends to focus on enabling banks and businesses worldwide to conduct more commerce activities with Japan by equipping them with speed, efficiency, and transparency of payments.

Furthermore, by receiving the licence, Nium supports its commitment to quality, transparency, and regulatory compliance. It also assists the company as it expands its footprint and improves its capabilities in the dynamic market across the Asia Pacific region. Currently, Nium is positioned to enter partnerships with several corridors as it advances in its objective to modernise the global payments infrastructure. The company recently announced other regulatory approvals across the Asian market, including in India, where it secured an in-principle approval for two payment licences. Additionally, Nium aims to facilitate interactions between strategic regions in the world. The Type 1 licence aligns with the company’s commitment to enhancing global financial services by offering users access to secure and modern payment solutions.

Representatives from MOIN, a South Korean securities firm, also underlined that with the newly attained licence, Nium is set to provide real-time money transfers, as well as cost-effective transactions, improving the overall efficiency of the process between Korea and Japan. This focuses on allowing both MOIN and Nium to improve the customer experience while supporting the former’s objectives of reducing remittance-associated costs for individual and business customers and providing faster processing times, lower transaction costs, and increased security.

By expanding its operations in Japan, Nium projects fostering local partnerships and contributing to the expansion of the local fintech ecosystem. The company is committed to developing trust with its users and collaborators by prioritising security, compliance, and customer satisfaction.

Source: Link