Wise has completed its direct connection to the Zengin Data Telecommunication System, Japan's domestic payment network, via API, and settles directly with the Bank of Japan.
Following this announcement, Wise will now be the first non-bank operating in Japan to connect via the newly established API method, rather than the already existing Relay Computer (RC) system.
In addition, Wise currently represents a Funds Transfer Service Provider that settles payments directly with the Bank of Japan, while also making domestic JPY payments almost instant through the process of eliminating the need for intermediary banking partners. The connection also gives Wise the possibility to utilise recipient name lookup through the TogoATM Switching Service, representing a feature that allows Wise’s Japanese customers to send payments with security by confirming that recipient details match bank records. Furthermore, this initiative aims to address a common pain point where even minor discrepancies in katakana name entry can cause delays.
Going live on Japan's Zengin System and settling directly with the Bank of Japan
According to the official press release, the direct connections to local payment schemes currently represent the backbone of Wise's infrastructure, with 74% of all transfers on Wise now arriving in under 20 seconds as a result of Wise's connections with the UK's Faster Payments System, Europe's SEPA, Hungary's domestic rails, Singapore's FAST, Australia's NPP, Philippines' Pesonet & Instapay, and Brazil's Pix.
Furthermore, over the past years, Wise also worked closely with the Japanese Banks' Payment Clearing Network (`Zengin-Net`) and the Bank of Japan in order to further develop the technical infrastructure and meet the requirements for direct settlement participants in Japan's payment system. At the same time, Japan's decision to open the Zengin System to non-banks with an option to direct settlement with the Bank of Japan is expected to place it among a group of G20 economies that have acted on commitments in order to improve cross-border payments.
In addition, being combined with recipient name lookup through TogoATM Switching Service, the partnership is set to focus on making the process of sending money to and from Japan significantly easier and even more reliable. Wise is expected to also implement a phased rollout approach to the Zengin System, while also gradually increasing transaction volume in order to ensure service quality and scaling to full capacity.
