Why do remittance apps in Japan cap transfers at 1 million yen?

The Payment Services Act calls it "funds transfer service" (資金移動業) when a company other than a bank or similar institution sends money (exchange transactions, 為替取引) as a business, and it allows this only for companies registered with the Prime Minister (Article 2, paragraphs 2 and 3; Article 37). Many companies that run remittance apps are not banks but these funds transfer service providers (資金移動業者).

Funds transfer services are divided into three types by the amount that can be moved at one time (Article 36-2). The amounts themselves are written in the Enforcement Order, not in the Act: Type 2 is up to "an amount equivalent to one million yen" (百万円に相当する額) and Type 3 is up to "an amount equivalent to fifty thousand yen" (五万円に相当する額) (Enforcement Order, Article 12-2). Type 1 has no amount cap in the laws and regulations. In exchange, the company has to make a business implementation plan (業務実施計画) and get a separate authorization (Article 40-2).

According to an FSA explanation, until the amended law took effect on May 1, 2021, all funds transfer service providers had a cap of ¥1,000,000 per transfer. The amendment kept the existing system as Type 2 and newly created Type 1 for transfers over ¥1,000,000 and Type 3 for transfers of around several tens of thousands of yen. Many of the "up to ¥1,000,000" notices you see today carry over this Type 2 cap as it is.

The FSA list of registered funds transfer service providers (as of August 31, 2026) has 85 companies. Counting the column for the type of business, 77 companies hold Type 2 only, 7 companies hold both Type 1 and Type 2, 1 company holds Type 1 only, and there was no Type 3 company. In total, 8 companies hold Type 1.

Among the remittance services compared on this site, the table below shows the registered type of the 5 companies that are not banks, next to what each says about the amount an individual can send at one time. Holding Type 1 does not necessarily mean that individual users can send more than ¥1,000,000.

SBI Remit announced that it received authorization of its Type 1 business implementation plan on July 21, 2026. The announcement says it is preparing "Remit Prime" (レミットPrime), a service for companies that can send up to ¥1,000,000,000 (1 billion yen) per transfer, and gives the start time as "planned for the future" (今後予定). Its remittance page for individuals still said up to ¥1,000,000 per transfer as of October 8, 2026. Even when the type in the registration list changes, the amount an individual can send does not increase right away, so check each company's guidance.

Wise, which holds both Type 1 and Type 2, explains that for users registered with an address in Japan it handles a transfer under Type 2 if it is ¥1,000,000 or less and under Type 1 if it is over ¥1,000,000, and that the choice is made automatically. However, a transfer over ¥1,000,000 cannot be paid from the Wise account balance. Adding money to the account is also up to ¥1,000,000 at one time, and withdrawing is up to ¥1,000,000 at one time.

For a transfer under Type 1, you agree to three things before sending: the recipient, the amount and the estimated time until arrival. Wise says that a Type 1 transfer that arrives later than the first estimate has to be refunded, not given a new estimate, and it explains the reason as Type 1 regulations. But it also writes that only a very small share of transfers go past the estimate.

This explanation matches Article 51-2 of the Payment Services Act, which prohibits a Type 1 company from owing debts for which the amount, sending date and destination are not clear, and also from owing debts beyond the period set by Cabinet Office Order, such as the period needed to process the transfer. However, the Cabinet Office Order leaves some room: it allows up to 2 months when a certain safeguarding arrangement is in place, and a period for resolving causes that are not the provider's fault, such as wrong recipient details, can be added. In other words, "if it is late, it is refunded in every case" is not the wording of the law itself. It is how Wise operates. Wise itself does not cite an article number, and the link to the article is this site's reading.

The balance also has a cap. Wise applies to users registered with an address in Japan a holding limit equivalent to ¥1,000,000 across all currencies together, and gives the reason as Japanese regulations. The limit can be raised temporarily to a maximum of ¥20,000,000 for up to 6 months, but if the balance stays above the limit for 30 days or more, the account may be restricted. A Type 2 company has to set up a system to check whether money is going to be used for transfers when it owes one user a debt over ¥1,000,000 (Cabinet Office Order, Article 30-2), so the holding limit is thought to be related to this.

Even when the cap per transfer is ¥1,000,000, it does not mean you can send many times in a row. Some companies set their own limits for periods such as 30 days, 1 month or 1 year. For example, SBI Remit calls the ¥1,000,000 per-transfer cap a "standard based on laws and regulations" (法令に基づく基準) and states clearly that, in addition to it, "our company independently" (当社は独自に) sets the following limits.

These limits per period are not numbers set by law. Each company sets them as part of how it handles identity checks and anti-money laundering measures. Even a transfer of ¥1,000,000 or less may not be accepted if you have sent a lot recently. If you plan to send a large sum in several transfers, for example for a family member's school fees or moving costs, checking each company's limits per period first helps you avoid being stopped partway.

The rules on the Japan side are not the only thing that decides the amount you can send. The regulations at the destination and the local partner that handles the payout also have limits, and if they are lower than the limit on the Japan side, they take priority. SBI Remit says that when an overseas partner sets its own limit, it follows that limit. Smiles also writes in its terms that when the laws of the receiving side set a limit, the lower one is the limit.

As a specific example, Wise states that for transfers to Korean won, from September 1, 2026 the amount that can be received changes with the recipient's residency status. A resident of South Korea can receive up to the equivalent of USD 100,000 per year (with no regulatory limit per transfer). A non-resident can receive up to the equivalent of USD 5,000 per transfer and up to the equivalent of USD 50,000 per year. Wise writes that, separately from this, limits on the Wise side or on the sending currency side may also apply.

Banks are not funds transfer service providers, so the Type 2 cap of ¥1,000,000 does not apply to them. This is because the Payment Services Act defines funds transfer service as a business of "persons other than banks and similar institutions" (銀行等以外の者). However, overseas remittance by banks also has limits that each bank sets. The table below shows the guidance for applying online.

When you want to send more than ¥1,000,000 at one time, the candidates are a service that can send under Type 1, or a bank. But banks also have daily and monthly limits, and there are cases, such as SMBC, where the limit is lower only for some countries and regions. With any method, the conditions change depending on the destination.

Before sending a large amount, checking in the following order helps prevent the transfer being stopped partway or extra procedures being added.

1. Is the amount ¥1,000,000 or less, or over it? If it is over, does the service accept transfers over ¥1,000,000 for individuals? (You cannot judge this only from whether it holds Type 1.)
2. The service's limits per period (most recent 30 days, 1 month, 1 year and so on) and how much you have sent so far. Some services set limits individually for each user.
3. Limits for each destination and each payout method (bank account, cash pickup and so on). In some places the limit changes with the recipient's residency status.
4. If the amount is over ¥1,000,000: restrictions on the payment method (with Wise, you cannot pay from your balance) and what happens when the arrival estimate has passed (under Type 1, it may be refunded in some cases).
5. For a transfer over ¥1,000,000, the company that sent the money files a Report of Overseas Remittances with the tax office. Have you already submitted your My Number?

This article does not suggest splitting a transfer into small parts to avoid a limit. The limits and the report are systems for user protection, anti-money laundering measures and proper taxation, and depending on how a transfer is split, it becomes subject to each company's limits and checks. If you have a reason to send a large sum, consult the remittance service or the bank in advance.

The ranking by total cost, which combines the fee and the exchange rate, also changes with the amount you send. To compare with your actual amount, enter the destination and the amount in the remittance cost comparison table.