You’ve just finished a long shift, battled the last train home, and now you need to send part of your salary to Kathmandu, Kochi, or Cebu.
Your nearest Japanese bank branch is a 15-minute walk, the ticket machine is out of order (again), and the staff member politely hands you a 4-page form—mostly in keigo you barely understand.
Two hours and ¥4,500 in fees later, your family still won’t see the money for three working days.
Sound familiar?
You’re not alone. Every month thousands of Nepali, Indian, Sri Lankan, Bangladeshi, and Filipino residents in Japan over-pay and under-serve themselves by defaulting to their Japanese bank. Below we unpack exactly why that happens, how much it’s costing you, and—most importantly—how to fix it in under five minutes.
The 5 Hidden Costs of Using a Japanese Bank for Overseas Transfers
Japanese banks are brilliant for domestic yen transactions. For international remittances to South & Southeast Asia, they’re engineered to be expensive and slow. Here’s the breakdown:
1. Eye-watering flat fees
- MUFG, SMBC, Mizuho: ¥3,500–¥4,000 flat per transfer regardless of amount
- Plus ¥1,500–¥2,500 lifting/receiving fees charged by the intermediary and beneficiary banks
- Total fixed cost before FX margin: up to ¥6,500
2. FX margins that dwarf the advertised fee
Banks rarely disclose the exchange rate they’ll use until the money is already gone. A “0 yen fee” campaign can hide a 3–4 % markup on the mid-market rate.
On a ¥100,000 transfer to PHP, that’s ¥3,000–¥4,000 more than you’d pay with transparent providers.
3. Double-dipping on correspondent banks
Japanese banks almost always route via USD or EUR. Your JPY→USD→INR journey means two sets of correspondent charges, each trimming the final credit.
4. 2–4 business-day delays
Cut-off times are 15:00 or earlier. Miss it on Friday and your family waits until Wednesday—public holidays in both Japan and the destination can push it further.
5. Paperwork and branch hours
Branch counters close at 15:00 on weekdays; many require a hanko and a “purpose of remittance” letter for first-time transfers. Online banking portals are often Japanese-only and cap daily overseas limits at ¥1 million.
What “Good” Looks Like: Specialist Remitters in Japan
The Financial Services Agency has licensed dozens of non-bank remittance companies that keep JPY pools in Japan and local currency pools in Kathmandu, Mumbai, Colombo, Dhaka, and Manila.
Because they settle locally on both ends, they bypass the SWIFT maze and pass the savings on to you.
Below are the only names you need to remember (all fully regulated in Japan and available in English):
- Wise
- SmileRemit
- JpRemit
- BrastelRemit
- CityRemit
- JapanRemit
- KyodaiRemit
Side-by-Side: Sending ¥50,000 to Nepal (JPY→NPR)
| Provider | Fee (¥) | FX margin | NPR received | Speed |
|---|---|---|---|---|
| Major bank A | 4,000 | 3.2 % | 38,100 NPR | 3 days |
| Wise | 380 | 0.35 % | 41,800 NPR | Instant–6 h |
| SmileRemit | 0 | 1.1 % | 41,050 NPR | 10 min–2 h |
| JpRemit | 500 | 0.9 % | 40,900 NPR | Same day |
Bottom line: the bank route leaves your sister in Bhaktapur 3,700 NPR (≈ ¥3,400) poorer—every single time.
How the Specialists Beat Japanese Banks on Every Metric
Cheaper Fees
Flat ¥0–¥500 or a transparent %, always shown upfront.
Better FX Rates
Mid-market rate plus <1 % margin is standard at Wise; the others hover 0.8–1.5 %. Banks average 3 %.
Faster Delivery
Local payout networks credit accounts in 10 minutes (SmileRemit to eSewa, BrastelRemit to bKash, CityRemit to GCash) or same-day to bank accounts.
Language & Convenience
Fully English apps, 24-hour chat support, and the ability to upload MyNumber card once and remit in seconds.
Regulatory Safety
All seven providers hold Kanto Local Finance Bureau licenses and segregate customer funds in trust banks—your money never sits on their balance sheet.
Step-by-Step: Moving Away From Your Bank Today
-
Pick your corridor
Decide whether you send mostly to Nepal, India, Sri Lanka, Bangladesh, or the Philippines. Certain corridors have “hero” providers (e.g., BrastelRemit for BDT, JapanRemit for PHP). -
Run a live quote
Open RatesRemit's Comparison Tool and enter JPY amount → destination currency. You’ll see real-time fees, rates, and speed for all seven legal providers. -
Register once
You’ll need:- Residence card (在留カード)
- MyNumber card or notification letter
- A selfie for liveness check
Approval is usually under 15 minutes.
-
Fund your transfer
Most providers give three funding options:- Japan Post Bank furikomi (free)
- Convenience-store cash deposit (¥120 fee)
- Instant yen debit card payment
Choose the cheapest that matches your urgency.
-
Track and repeat
Apps push notifications when NPR/INR/LKR/BDT/PHP hits the other side. Re-send in two taps next month.
Real-Life Scenarios: Which Provider When?
| Scenario | Top Pick | Why |
|---|---|---|
| You send ¥30,000 to your mum’s bKash wallet in Dhaka every week | BrastelRemit | Zero fee, instant to bKash, rate lock 30 min |
| One-off tuition ¥300,000 to your nephew’s Indian bank account | Wise | Mid-market rate, negligible spread, FIRC pdf auto-generated |
| Emergency ¥20,000 to sister’s eSewa in Nepal within 5 minutes | SmileRemit | 24/7 payout to eSewa, promo code “SAVE20” gives ¥0 fee first 3 transfers |
| Salary ¥150,000 to your wife’s BDO in the Philippines | JapanRemit | Flat ¥490 fee, same-day to BDO, PHP amount guaranteed at send time |
| You prefer cash pickup for parents in rural Sri Lanka | CityRemit | 1,800+ Bank of Ceylon & Peoples Bank counters, LKR ready in 1 h |
Common Worries—Answered
“Are these companies legal?”
Yes. Each holds a 資金移動業者 license issued by the Ministry of Finance. You can verify the registration number on the Kanto bureau website.
“Will my bank close my account if I stop sending internationally?”
No. Domestic and international transactions are unrelated. Keep your account for salary and rent; simply use a specialist for remittances.
“What if the rate drops after I send?”
All seven providers lock the rate at the moment you confirm—unlike banks that debit yen today but convert tomorrow at an unknown rate.
“Can I cancel?”
If status shows “Awaiting funding,” cancel instantly. After payout, cancellation is impossible—same as banks.
Pro Tips to Squeeze Every Yen
-
Batch vs. frequency
Sending ¥100,000 once costs less than two ¥50,000 transfers because many fees are flat. But if cash-flow is tight, zero-fee apps (SmileRemit, BrastelRemit) favour small frequent sends—do the math each time. -
Use promo codes
New-user codes (“WELCOME”, “SMILE3”) waive fees for the first 1–3 transfers. Rotate among family members if needed. -
Time your send
FX margins widen on weekends when Japanese banks are closed. Lock rates on weekday mornings for best JPY→INR, JPY→NPR. -
Double-check names
A single character mismatch (e.g., “KUMAR” vs “Kumaar”) triggers manual review and 24-hour delays. Copy exactly from the bank book or e-wallet. -
Keep receipts for tax
Japan allows overseas gift remittance up to ¥1.1 million/year tax-free per recipient. Download the PDF receipt from the app and store it with your gensen-choshu-hyo.
Ready to Ditch the Bank Queue?
You work hard for every yen; don’t donate 5–8 % of it to legacy infrastructure.
In the time it took you to read this post, you could have opened an account, locked a better rate, and had your remittance credited in Kathmandu or Cebu before dinner.
Take 30 seconds now: plug your numbers into RatesRemit's Comparison Tool and see exactly how much your next transfer will cost with Wise, SmileRemit, JpRemit, BrastelRemit, CityRemit, JapanRemit, and KyodaiRemit—no guesswork, no bank branch, no surprises.
Send smarter, send cheaper, send happier. Your family (and your wallet) will thank you.