Wise receives Type 1 Funds Transfer License in Japan

Wise Payments Japan, the Japanese subsidiary of Wise, a fintech company providing international money transfer services globally, has obtained a Type 1 license as a Money Transfer Operator from the Financial Services Agency of Japan.

• Wise is one of the first foreign international financial service companies to obtain a First Money Transfer Operator license in Japan at an early stage (Nium reported obtaining such license on March 1)
• Enables transfers of up to 150 million yen to over 50 countries (including US dollars, British pounds, euros, and Australian dollars) using the mid-market rate with no hidden costs.

Wise, a global technology company building the best way to move money around the world, has become one of the first foreign international financial service companies to obtain a First Money Transfer Operator license in Japan at an early stage.

With the acquisition of the Type 1 Money Transfer Operator license, Wise Payments Japan will soon be able to completely remove the limit of 1 million yen per transaction for overseas remittances, which had been imposed as a Type II Money Transfer Operator since 2016.

Wise’s acquisition of this license will bring further competition to the market for individual and corporate customers considering international remittances of up to 150 million yen. Transfers can be made in over 40 currencies, including euros, British pounds, US dollars, South Korean won, and Singapore dollars, using the mid-market rate with no hidden costs.

According to the World Bank, Japan is one of the most expensive countries for international remittances among the G20 participating countries. This is because unlimited international remittances in Japan have only been provided by banks and other institutions charging over 7% in fees, up to 10 times higher than Wise’s average fee of 0.67%.

Since launching its service in 2016, Wise has steadily grown and expanded its services tailored to its Japan base and Japanese customers.

• In 2016, Wise launched its personal money transfer service under the name “TransferWise”.
• In 2018, Wise launched its “TransferWise for Business” service for corporate customers to meet the needs of international business transfers.
• In 2020, Wise became an early adopter of online identity verification and registration procedures, reducing transfer costs by 24%.
• In July 2020, Wise launched the “Wise Account” and “Wise Business Account,” enabling customers to open local account details in countries and regions including Australia, the UK, the Eurozone, and the US.
• In January 2021, Wise launched the “Wise Debit Card” and “Wise Business Debit Card.”
• In September 2021, Wise further reduced transfer costs in Japan by 15%.
• In December 2021, Wise expanded the functionality of “Wise Business” by adding expense cards for employees.
• In May 2023, Wise launched its “Wise Platform” service in Japan through a partnership with GMO Aozora Net Bank, its first partner bank in Japan.

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