Banks Eye Fund Transfer Fee Cut to Help Japan Go Cashless
Tokyo, Aug. 19 (Jiji Press)--Japan’s banking industry has started full-fledged work to reduce expensive fees for sending money electronically, widely seen as an obstacle to the country’s shift to a cashless society.
Efforts are being made to open an interbank money transfer system to nonbank financial businesses such as smartphone-based payment service providers and establish new fund transfer infrastructure.
For interbank transfers, almost all deposit-taking institutions in Japan use the Zengin Data Telecommunications System, or the Zengin System. It handles transactions totaling over 10 trillion yen per day.
The system is highly secure, but the interbank transfer fees related to the system have stayed high for a long time.
The fees stand at 117 yen for a transfer of less than 30,000 yen and 162 yen for 30,000 yen or more. Based on the costs, banks decide how much they charge their customers for sending money to accounts at other lenders.
[Copyright The Jiji Press, Ltd.]