In Japan, the term “Furikomi (振込)” refers to a bank transfer or electronic funds transfer. This process allows an individual or business to transfer money directly from their bank account to the account of another person or business. Furikomi is widely used in Japan for a variety of transactions such as supplier payments, payroll, bill settlement, and customer invoicing. It’s a convenient way to handle financial transactions without handling physical cash or checks.

Below is a guide on what businesses need to know about Furikomi, including how it works, who uses it and why, its associated costs and fees, and how to start accepting it as a payment method.

What’s in this article?

• How do Furikomi payments work?
  
• Where is Furikomi used?
  
• Who uses Furikomi?
  
• Benefits of accepting Furikomi
  
• Furikomi costs and fees
  
• Furikomi security measures
  
• Accepting Furikomi as a payment method
  
• Alternatives to Furikomi
  
• How Stripe Payments can help
  

How do Furikomi payments work?

Furikomi payments work the same as other bank transfers across the globe. The term Furikomi simply refers to a domestic bank transfer within Japan. These payments are generally cleared through the Zengin Data Telecommunication System (Zengin System).

Here’s the process for completing a Furikomi:

• Initiation: The sender initiates a Furikomi through an online banking platform, mobile banking app, automated teller machine (ATM), or directly at a bank branch. The sender must enter the recipient’s name, bank and branch, account type, and account number. The recipient name must match the name registered on the bank account. The sender must specify the transfer amount and can add an optional reference note that states the transfer’s purpose.

• Fee notification: The chosen platform will inform the sender about associated transaction fees, which vary based on the banks and types of accounts involved in the transfer. Fees might be higher if funds are moving between different banks or the sender requests a faster processing time.

• Payment authorization: The sender’s bank verifies the availability of funds in the sender’s account and the accuracy of the recipient’s details. Then, the sender authorizes the transaction, often through a secure method such as a password, personal identification number (PIN), or biometric verification.

• Funds transfer: On successful authorization, the sender’s bank electronically transfers the funds to the recipient’s bank. Processing speeds vary. Typically, funds are transferred within one business day, but this could take longer depending on factors such as the time of day and day of the week when the transfer was initiated. For example, same-day payments must be made before the 3:30 p.m. local cutoff time.

• Funds collection: The recipient’s bank receives the funds and credits them to the recipient’s account. This bank also checks to ensure the funds are deposited into the correct account.

• Transfer confirmation: Both parties receive a confirmation of the completed transaction in their banking apps, via email, or as a paper statement, depending on their chosen methods of communication with their banks.

It’s worth noting that the Zengin System was extended in 2018 to enable settlement around the clock, year-round. This makes same-day transfers available for transactions initiated before a bank's cutoff time.

Where is Furikomi used?

Furikomi is a deeply rooted payment method in Japan’s financial environment, reflecting the country’s unique blend of traditional financial habits and strong inclination towards technological improvement. This payment method’s usage has been shaped by Japan’s cultural preferences, technological infrastructure, and regulatory policies.

Driven by high internet penetration rate and a smartphone adoption rate of over 80.0%, Japan’s digital payment market is projected to grow from about $469.5 billion in 2024 to over $1.3 trillion by 2033. Furikomi serves as an important bridge in this transition, connecting traditional bank accounts with digital payments.

As of October 2024, a record 29.3% of Japan’s population is aged 65 or older. This older demographic generally favors Furikomi for its familiarity, security, and bank-backed reliability. While mobile payments are increasingly popular among younger generations for small daily purchases, customers and businesses across all demographics continue to trust Furikomi for high-value, urgent transactions such as rent, utility bills, and commercial B2B invoices.

The Japanese government has also supported the shift towards digital payment methods such as Furikomi, achieving 42.8% cashless spending in 2025 and aiming for 80.0% in the long term. The electronic payments services industry is primarily regulated by Japan’s Financial Services Agency, which has balanced promoting improvement with security, financial stability, and fraud prevention. Legislative changes, such as the recent amendments to the Banking Act, have also impacted Furikomi by encouraging more integrated financial services.

Who uses Furikomi?

• Individual customers: In Japan, people of all ages use Furikomi for high-value transactions, attracted in part by its security, precision, and ability to confirm transfers immediately.

• Small and medium-sized enterprises (SMEs): SMEs across various industries, such as retail and manufacturing, rely on Furikomi for business-related transactions such as supplier payments and salary disbursements.

• Large corporations: Enterprises across automotive, electronics, and real estate use Furikomi for high-value B2B operations, including supplier invoicing, payroll, intercompany settlements, and international payments. Its simple integration with enterprise banking networks makes it ideal for handling large-scale, automated payouts.

• Ecommerce platforms: Online marketplaces and ecommerce websites often include Furikomi as a payment method for customers who prefer a secure alternative to credit card transactions and want to mitigate online fraud risks.

• Utility and service providers: Businesses that provide utilities (e.g., electricity, water, gas) or services (e.g., telecommunications, internet) use Furikomi for billing in Japan. Its direct, often automated payment process makes it convenient for managing regular bills and minimizing late payments.

• Educational institutions: Schools and universities use Furikomi to collect tuition fees, donations, and other related expenses.

• Government entities: Government entities including tax authorities and local municipalities use Furikomi to collect tax payments, fines, and other dues from Japanese citizens.

Benefits of accepting Furikomi

Furikomi payments share some common advantages with general electronic transfers and offer specific advantages unique to the Japanese financial system and business culture. Furikomi is deeply ingrained in Japan’s financial culture and businesses that accept it can benefit from its status as a familiar, trusted payment method.

Businesses that accept Furikomi as a payment method might see the following benefits:

• Customer recognition: Customers in Japan consider Furikomi a preferred payment method for its security and familiarity. Businesses that accept this payment option can attract a broader customer base by catering to this preference.

• Minimized transaction errors: Unlike some electronic transfer systems, Furikomi requires the recipient’s name to be an exact match of the name on their bank account records. This precision minimizes transaction errors and fraud.

• Reduced chargeback risk: Furikomi payments cannot be reversed by the sender after processing (unlike credit card payments), which is a significant benefit for businesses.

• Customizable options: By using Furikomi, businesses can customize different types of transactions including regular and recurring transfers and one-time payments. This flexibility enables businesses to handle a range of payment processes such as paying suppliers, refunding customers, and managing subscriptions all through one payment method.

• Smoother transactions: Most customers and businesses in Japan are already well versed in using Furikomi, creating a smooth transaction process.

• Expedited dispute resolution: In case of disputes or errors, the traceability and standardized nature of Furikomi transactions facilitate quicker resolution.

• Improved business reputation: In Japan, business relationships are often based on mutual trust and long-term cooperation. Using a reliable, well-established payment method such as Furikomi can enhance a company’s reputation and signal a commitment to upholding traditional business practices, which can be valuable in negotiations and partnership building.

• Predictable payout schedules: Furikomi’s predictable processing times allow businesses to plan their financial activities with more precision.

• Digital accessibility: Furikomi has adapted alongside Japan’s digital infrastructure and the service is accessible via online and mobile banking platforms. This makes it a suitable option for ecommerce businesses, digital-first enterprises, businesses in areas with limited access to physical banking facilities, and businesses that want to reduce physical travel and cash handling needs.

Furikomi costs and fees

Furikomi costs and fees can vary extensively depending on factors such as the banks and account types involved and the nature of the transaction. Fees for business accounts can be higher than those for personal accounts, and some banks will have tiered fee structures for businesses in which fees decrease as the transaction volume increases.

To encourage customers to use digital banking services, banks might lower the cost of transfers initiated via online or mobile banking platforms compared to those made in person or via ATM. Transfer timing can also affect the fee: transfers made after business hours, on weekends, or on holidays might incur higher fees due to the additional processing required.

Below are some common Furikomi transaction types and their fee structures:

• Interbank transfers: Transfers between accounts at different banks typically come with a fee ranging from 100–800 Japanese yen (JPY) per transaction.

• Intrabank transfers: Transfers within the same bank usually incur lower fees and in many cases have no fee.

• Automated and recurring transfers: Banks will often charge lower fees for processing automated or recurring transfers than for one-time transactions. These transfers might include payroll or regular vendor payments.

• International transfers: Fees are typically higher for international transfers and often range from 1,500–4,000 JPY per transaction. The exact fee depends on factors such as the destination country and any currency conversion rates.

• Special services: Some banks offer specialized Furikomi services for businesses, such as bulk transaction processing and integrated accounting solutions. These specialized services often come with their own pricing models and could include monthly subscription fees as well as transaction fees.

Furikomi security measures

Furikomi incorporates several security measures to ensure safe, reliable transactions. These measures are designed to protect the sender and the recipient from fraud and errors. Furikomi’s typical security features are outlined below, although exact security measures vary from bank to bank:

• Encryption: Furikomi transactions typically use Secure Sockets Layer (SSL) or its successor Transport Layer Security (TLS) to encrypt data sent between the user’s device and the bank’s server, making it difficult for unauthorized parties to intercept and decipher transaction details.

• Transaction limits: Transaction limits for Furikomi can vary depending on the bank and the account type. For individual accounts, daily limits often range from 500,000–10 million JPY. For business accounts, these limits can be higher. Some banks also allow customers to set their own limits.

• Account name matching: To combat remittance fraud and operational errors, major banks implement enhanced account name verification. This control, equivalent to Confirmation of Payee, validates that the recipient name specified by the sender precisely matches the name of the bank's registered account holder before funds are authorized to move.

• Two-factor authentication (2FA): Many Japanese banks have implemented 2FA for transactions such as Furikomi. This security measure requires authentication via one-time passcode or a randomized token.

• Real-time monitoring: Banks often use advanced monitoring systems to detect unusual transaction patterns that could indicate fraud. Customers are notified immediately of any suspicious activity through text message (SMS) or email alerts, enabling a swift response to potential security threats.

• Regulatory compliance: Japanese banks comply with Zengin System regulations and the Payment Services Act, which mandates security measures including regular audits, compliance with data protection laws, and maintenance of high cybersecurity standards to protect customer data.

• Customer education initiatives: Banks in Japan actively educate their customers about safe Furikomi practices, offering guidance on common phishing tactics, the importance of keeping passwords and PINs confidential, and how to securely initiate transactions.

Accepting Furikomi as a payment method

Businesses that want to start accepting Furikomi must meet several requirements. They’ll need to have a process in place for recording Furikomi transactions, reconciling them with their accounts, and managing any discrepancies or issues that might arise. They should also plan to establish a customer support system to address any queries or issues related to Furikomi payments.

Businesses must have the following basic operational features to be eligible to accept Furikomi:

• Business registration documentation: To accept Furikomi, businesses must have proof of business registration in Japan, such as a copy of the company registration certificate.

• Security measures: Businesses must ensure that they have adequate security measures in place to protect customer data, transaction details, and any other sensitive financial information. That includes compliance with all applicable data protection laws.

• Japanese bank account: Furikomi is a domestic bank transfer system that relies on Japanese bank account numbers and routing information, which are unique to Japanese banks. Businesses must have active Japanese bank accounts where they can receive Furikomi payments from customers.

If a business doesn’t have a Japanese bank account but wants to accept Furikomi payments, there are a few possible work-arounds:

• Partnering with a local entity: A business can partner with a local Japanese entity with a Japanese bank account. This entity can receive Furikomi payments on behalf of the foreign business and then transfer the funds through international banking channels.

• Working with international payments service providers: Some international payments service providers in Japan can facilitate the acceptance of Furikomi payments on behalf of foreign businesses. These providers can receive transfers into their Japanese bank accounts and then remit the funds to the business’s account in another country.

• Enlisting cross-border payments services: Some financial institutions offer cross-border payments services, although these can be limited and typically come with higher transaction fees and more regulatory complexity. An institution with this service can receive a Furikomi payment to its Japanese bank account on behalf of a foreign business, convert the currency, and transfer the payment to the business.

The typical time to set up and verify a merchant account for accepting Furikomi ranges from 2–3 business days. In some cases, additional documentation requirements or compliance reviews can extend this window to 1–2 weeks.

How to start accepting Furikomi payments

If the business has the appropriate proof of business registration, security measures, and an active Japanese bank account or access to one via one of the above work-arounds, it can follow these steps to accept Furikomi payments:

• Account verification: First, the business must undergo an account verification process with the bank. This includes providing detailed information about the business such as the nature of the business, expected transaction volumes, and company ownership details.

• Know Your Customer (KYC) compliance: Japanese banks are required to adhere to KYC regulations and will need to collect detailed information from businesses that want to accept Furikomi payments. Businesses might need to provide identification for key business owners and directors as well as information about their ownership structures and the nature of their operations.

• Payment system integration: Businesses will need to integrate a system for processing Furikomi payments. This might involve setting up specific software or a platform that can handle these transactions and record them appropriately in the business’s accounting system.

• Customer notification setup: Companies will need to establish a system to notify customers about their payment details for Furikomi transactions, including the recipient’s bank account number and the account holder’s name (i.e., the business name as registered with the bank).

Alternatives to Furikomi

While Furikomi is a standard payment method in Japan, businesses have several alternatives to choose from.

How Stripe Payments can help

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