This achievement positions Wise Payments Japan K.K. as one of the first international financial service providers to secure a Type 1 Funds Transfer Service Provider licence in Japan. This type of licence supersedes the previous limitations imposed by the Type 2 licence, enabling Wise to facilitate transactions exceeding one million JPY per transaction, a constraint it has operated under since 2016.
This regulatory approval introduces heightened competition in the Japanese market, allowing both individuals and businesses to conduct transactions of up to 150 million JPY per transaction across a wide spectrum of currencies, including major ones such as the Euro, British pound, US dollar, Korean won, and Singapore dollar.
According to fintechnews.hk, Wise distinguishes its approach by offering transactions at the mid-market rate without undisclosed fees, positioning itself favourably in a market identified by the World Bank as one of the G20’s most expensive for international money transfers. Officials from Wise Japan emphasised the increasing international requirements of Japanese customers and businesses and the role of the new license in meeting these demands with efficient, cost-effective, and transparent solutions.
Since its establishment in Japan in 2016, initially operating under the name TransferWise, Wise has experienced consistent growth, expanding its local workforce and improving its product portfolio. The company launched TransferWise for Business in 2018, introduced electronic Know Your Customer (eKYC) procedures in 2020 for digital authentication and onboarding and launched Wise Account and Wise Business multi-currency accounts in July 2020.
Moreover, in January 2021, Wise introduced the Wise Card for both individuals and businesses. December 2021 witnessed the enhancement of Wise Business features with the introduction of employee expense cards, and in May 2023, the Wise Platform was launched, with GMO Aozora Net Bank as its inaugural partner in Japan.
They talked about the company's beginnings in Japan and emphasised their goals to provide individuals and businesses with a streamlined experience when sending money internationally in different currencies. They mentioned that the new licence allows them to achieve these goals by introducing a highly competitive offering in the market, supporting competition and contributing to reducing the cost of international money transfers in alignment with the UN SDG [United Nations Sustainable Development Goals].
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