Wider access and easements for FinTech in Japan
The country of the Rising Sun known for the rapid implementation of new technologies has decided to eliminate the barrier for non-banking entities providing faster and cheaper services in the area of payments dominated so far by the banking sector. As a result, Japan will be able to handle transfers of over 1 million yen to entities in the Fintech sector.
Previous limit, so far, has excluded all entities that do not have the status of a bank from the business services market. Money transfers, especially foreign exchange, which is one of the basic banking services, will no longer be the exclusive domain of banks in Japan. Consumers have already got used to quick payments offered on the Fintech market, that is, non-banking institutions. The main complaint against traditional bank transfers is the time required for the transfer to be done.
Non-bank companies were admitted to the Japanese market in 2010, but the amount of the transfer was limited to the value of 1 million yen. There are currently 64 such companies operating on the Japanese market. One of the available functionalities is sending funds to your contacts using applications dedicated to sending messages.
The update of the limit will grant access to the market dominated by banks so far. The expected effect is a fall in prices of transfers of funds as well as an acceleration of economic turnover. Increasing competition will probably force banks to reduce fees for foreign transfers