Wise has become the first non-Japanese firm to gain direct access to Japan’s bank payment clearing network, Zengin, according to Reuters. This development allows Wise to bypass intermediary banks in Japan, significantly reducing both fees and processing times for transactions.
The move is expected to intensify competition in Japan’s payments market. Japan, which currently holds the second-highest remittance costs among G20 countries at 6.94%, could see increased pressure to lower fees. Wise, known for its low-cost cross-border payments, charges an average fee of 0.67%, positioning itself as a more affordable option in the market.
This follows Wise’s recent success in entering the Indian market, where it secured a license from the Reserve Bank of India, aiming to capture a share of the remittances sector there.