Wise, a global online money transfer service, has reportedly become the first non-bank financial institution to gain access to Zengin, Japan’s domestic payment network.
This approval is the first step, and Wise is currently working on fully connecting to Zengin.
Once completed, Wise will be able to process payments in under 20 seconds.
This development will allow Wise to offer faster and more affordable cross-border payments to and from Japan.
Wise’s fee structure averages 0.62%, offering a relatively low-cost option for cross-border payments.
Previously, access to Zengin was limited to local banks. However, a recent review by Zengin-Net’s Board opened the door for fund transfer service providers like Wise to apply for direct access.
This decision reflects a growing trend towards greater interconnectivity and efficiency in global payment systems.
By connecting directly to local payment systems, Wise aims to bypass traditional intermediaries, resulting in quicker processing times and lower fees for customers.
Currently, about 60% of all transactions on Wise globally are completed in under 20 seconds.
Wise already has similar connections in place in the UK, Europe, Hungary, Singapore, and Australia.
With the addition of Zengin, Wise expects to significantly improve its service offerings in Japan.
Once fully integrated, Wise will enable faster cross-border payments for individuals and businesses.
The company also anticipates that this move will benefit its partners, such as GMO Aozora Net Bank, who utilise Wise’s infrastructure to offer international payment services to their own customers.
Earlier this year, Wise obtained a Type 1 Funds Transfer Service Provider license in Japan, allowing it to handle transactions of up to 150 million JPY in over 40 currencies.
Featured image credit: Edited from Freepik
