Nium snags payments licence in Japan
GIC and Temasek-backed payments startup Nium has secured a payments licence by Japan’s financial regulator to handle large-amount transactions in the country.
The Type 1 Funds Transfer Service Provider licence, issued by the Japanese Financial Services Agency (JFSA), authorises Nium to provide a wide range of financial services.
This includes transferring up to 50 million yen (S$448,000) per transaction via Japan’s local payment clearing rail Zengin-Net to a Japanese beneficiary account.
Nium said on Thursday (Feb 29) that it is the first global company to have met the Type 1 licence standards, “with the JFSA recognising its ability to integrate with local payment rails, deliver real-time transactions, provide transparent costs, and offer significantly cheaper rates”.
Anupam Pahuja, executive vice-president of Asia-Pacific, Middle East and Africa at Nium, noted that previously, only banks could transfer large funds in Japan, whereas Nium has now become the global alternative for large-value transfers into and out of the country.
In its latest FY2022 financials released last August, Nium’s revenue surged over 266 per cent, while its losses rose 28.1 per cent to S$68.8 million. It has also been actively expanding into Malaysia and Japan in the year.
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The approval from Japan’s government agency to handle high-value transfers is seen as a “pivotal moment” as it expands in the Asia-Pacific, said the startup.
Nium’s co-founder and chief executive Prajit Nanu said last July that the company aims to break even in time for a US initial public offering by end-2024. It was then valued at US$2 billion.
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