ID :
78964
Tue, 09/08/2009 - 10:12
Auther :
Shortlink :
http://m.oananews.org//node/78964
The shortlink copeid
Tokyo Report: Japan to Liberalize Remittance Services
Tokyo, Sept. 7 (Jiji Press)--Remittance services will be
liberalized in Japan next year, allowing not only financial but also
nonfinancial businesses to offer a variety of services.
Remittance services have so far been limited to banks. But a bill
to liberalize such services passed the Diet, Japan's parliament, in June and
will come into force within a year.
In the United States, PayPal Inc. and other companies that handle
payments and money transfers between individuals through the Internet have
thrived, playing a dominant role in e-commerce and online auction services.
The new law will allow Japanese consumers to use money transfer
services developed overseas. It is also aimed at "encouraging Japanese
companies to create unique remittance services," says an official at the
Financial Services Agency.
"There must be a need for easy, small-amount money transfers" for
mail-order payments via mobile phones or convenience stores rather than
using banks, he adds.
NTT DoCoMo Inc. <9437>, Japan's biggest mobile phone operator,
began a joint service with Mizuho Bank in July, allowing customers to send
up to 20,000 yen per month via cell phone.
When the new law takes effect, NTT DoCoMo and other companies will
be able to offer remittance services on their own, without relying on banks.
While Edy and other electronic alternatives to conventional money
cannot be exchanged for cash at present, such operations are likely to be
permitted for registered providers of remittance services under the new law.
The FSA is expecting competition to encourage the "creation of
convenient services, different from those of banks," the official says.
As the security of new remittance services will be vital to their
growth, the FSA plans to require service providers to set aside the funds
equal to the transfers they handle. It also intends to limit the maximum
remittance amount to between 500,000 and one million yen.
According to the Japanese Bankers Association, or Zenginkyo,
1,368.21 million domestic money transfers were made in 2008.
An executive of a major think tank predicts that within a few years
transfers through new remittance services may soar to a level equal to
one-third or even half of those through banks.
liberalized in Japan next year, allowing not only financial but also
nonfinancial businesses to offer a variety of services.
Remittance services have so far been limited to banks. But a bill
to liberalize such services passed the Diet, Japan's parliament, in June and
will come into force within a year.
In the United States, PayPal Inc. and other companies that handle
payments and money transfers between individuals through the Internet have
thrived, playing a dominant role in e-commerce and online auction services.
The new law will allow Japanese consumers to use money transfer
services developed overseas. It is also aimed at "encouraging Japanese
companies to create unique remittance services," says an official at the
Financial Services Agency.
"There must be a need for easy, small-amount money transfers" for
mail-order payments via mobile phones or convenience stores rather than
using banks, he adds.
NTT DoCoMo Inc. <9437>, Japan's biggest mobile phone operator,
began a joint service with Mizuho Bank in July, allowing customers to send
up to 20,000 yen per month via cell phone.
When the new law takes effect, NTT DoCoMo and other companies will
be able to offer remittance services on their own, without relying on banks.
While Edy and other electronic alternatives to conventional money
cannot be exchanged for cash at present, such operations are likely to be
permitted for registered providers of remittance services under the new law.
The FSA is expecting competition to encourage the "creation of
convenient services, different from those of banks," the official says.
As the security of new remittance services will be vital to their
growth, the FSA plans to require service providers to set aside the funds
equal to the transfers they handle. It also intends to limit the maximum
remittance amount to between 500,000 and one million yen.
According to the Japanese Bankers Association, or Zenginkyo,
1,368.21 million domestic money transfers were made in 2008.
An executive of a major think tank predicts that within a few years
transfers through new remittance services may soar to a level equal to
one-third or even half of those through banks.
