Wise has become the first foreign company to receive approval for direct access to Japan’s bank payment clearing network, Zengin. According to a report from Reuters, this access will enable Wise to bypass intermediary banks that handle fund processing and settlement in Japan, resulting in reduced fees and faster processing times.
If Wise successfully implements these changes, it could intensify competition within the Japanese payments market. World Bank data indicates that the cost of remittances in Japan is the second highest among G20 countries, averaging 6.94%. In contrast, Wise’s average fee for cross-border payments is significantly lower at 0.67%.
This development follows Wise’s recent licensing from the Reserve Bank of India, allowing the company to enter the Indian remittance market.