UK-based fintech firm Wise has received the approval for direct access to Japan’s bank payment clearing network, aiming to optimise its customer experience and further develop. Following this announcement, the initiative has the possibility to put pressure on banks, including megabanks such as Mitsubishi UFJ, as well as smaller players, including SBI Shinsei and Sony Bank, in the competitive market for remittances.

In addition, Wise is expected to continue focusing on meeting the needs, preferences, and demands of clients and users in an ever-evolving market while prioritising the process of remaining compliant with the regulatory requirements and laws of the local industry as well. More information on the announcement Wise represents a company that was developed with the aim of making international money transfers cheap, fair, and simple. Its multi-currency account optimises the manner in which individuals and businesses manage their money across the globe, with a focus on improving customer experience and accelerating the overall development of the financial landscape.

Fees for cross-border payments, which are usually processed by banks, have fallen in recent years, but remain high nonetheless. The average fee to send USD 200 from Japan is the highest among G7 countries at 6.94%, according to World Bank data for the first quarter of 2024. The access to the `Zengin` system is expected to provide Wise with the possibility to bypass intermediary banks that process and settle funds in the region of Japan.

This initiative is set to lower fees and process times, while also optimise the overall user experience and satisfaction. At the same time, the company, whose solutions include customer remittances, business accounts, and provision of its backend payments infrastructure to financial institutions and enterprises, mentioned that the fee for its cross-border transactions across the globe is 0.59%. Furthermore, in the region of Japan, the number of its personal and business customers grew 35% in the past financial year.

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