The first time most expats in Japan try to send money home — or receive a salary from abroad — they go to their Japanese bank. The process is more expensive than it looks. The advertised fee is only part of what you actually pay.
This article breaks down the real cost of international transfers through a Japanese bank versus Wise, with specific numbers, a concrete example, and guidance on which option makes sense in different situations.
How Japanese Banks Handle International Wire Transfers
Japanese banks use the SWIFT network for international transfers. The process is functional but costly at multiple points.
Outgoing wire transfer fee: Most major Japanese banks charge ¥2,500-4,000 per outgoing international transfer. Japan Post Bank charges ¥2,500 for online transfers and ¥3,000-4,000 at the counter. MUFG, SMBC, and Mizuho typically charge ¥3,500-4,000 per transfer online, more at a branch.
Exchange rate markup: This is the hidden cost that most people miss. Banks do not exchange currency at the mid-market rate — the rate you see on Google or XE.com. They use their own rate, which typically includes a 2-4% spread. On a ¥100,000 transfer to USD, a 3% spread costs you ¥3,000 without appearing anywhere as a fee.
Correspondent bank fees: SWIFT transfers often route through one or more intermediary banks before reaching the destination. Each can deduct a fee of $10-30 USD from the transferred amount. Your bank may or may not disclose this upfront. The recipient often receives less than expected.
Total effective cost: On a ¥100,000 transfer, you might pay ¥3,500 in bank fees, ¥3,000 in exchange rate spread, and an unknown amount in correspondent bank fees. The actual cost is frequently 6-8% of the transfer amount for smaller sums.
How Wise Works
Wise (formerly TransferWise) uses the mid-market exchange rate — the same rate banks use when trading between themselves, with no markup. Their revenue comes entirely from a transparent fee shown upfront before you confirm the transfer.
For a ¥100,000 transfer to USD (as of 2026), Wise's fee is typically ¥600-900. The exchange rate is the real mid-market rate. There are no correspondent bank fees because Wise holds local bank accounts in most countries and moves money locally rather than through SWIFT.
The recipient gets what the calculator showed when you initiated the transfer.
Concrete Example: Sending the Equivalent of $1,000 USD from Japan
Assume the mid-market rate is 150 JPY per USD, so sending $1,000 USD requires ¥150,000.
Via a Japanese bank (MUFG, online):
- Transfer fee: ¥3,500
- Exchange rate at, say, 147 JPY/USD (3% markup applied by the bank): to send $1,000 at 147, you need ¥150,000 but only ¥147,000 converts to $1,000. The bank takes ¥3,000 in the spread.
- Correspondent bank fee (estimated): $15 deducted from the received amount
- Amount received: approximately $985
- Total cost to you: roughly ¥6,500 in fees and spread, plus $15 lost in transit
Via Wise:
- Fee: approximately ¥750 (varies slightly by destination)
- Exchange rate: 150 JPY/USD (mid-market, no markup)
- Correspondent fees: none
- Amount received: approximately $999
- Total cost: ¥750
On a ¥150,000 transfer, Wise saves approximately ¥5,750-6,000. At higher transfer amounts the percentage savings shrinks slightly (Wise's fee scales up), but the exchange rate advantage remains.
Receiving Money in Japan
If you receive a salary or payments from outside Japan, the bank equivalent of the above applies in reverse. A wire to your Japanese bank account typically arrives with correspondent bank fees already deducted and at whatever rate your bank posts, not the market rate.
Wise offers a "Wise Account" (previously called a borderless account) that gives you local bank details in multiple currencies — including JPY, USD, EUR, GBP, AUD, and others. If someone sends you money to your Wise USD details, it arrives as USD with no conversion and no incoming wire fees. You can then convert at the mid-market rate when it makes sense to you, or spend directly in JPY with the Wise debit card.
For freelancers, remote workers paid in USD, or anyone receiving regular transfers from abroad, this setup is meaningfully cheaper and faster than routing everything through a Japanese bank account.
Opening a Wise Account as a Japan Resident
Wise operates in Japan and accepts Japanese residents. The process is online:
- Create an account at wise.com and select Japan as your country of residence.
- Verify your identity using your passport and your Zairyu card (residence card). This step typically takes 1-3 business days.
- Add a funding method — a Japanese bank account or Japanese credit/debit card.
- Initiate transfers or generate your local currency account details.
You do not need to be a Japanese citizen. A valid Zairyu card demonstrating residence status is sufficient. Wise is not a bank in Japan and does not require the same account-opening process as a Japanese bank. We recommend Wise for international transfers — the combination of mid-market rates and transparent fees makes it straightforwardly better than a Japanese bank wire for most use cases. Get started at wise.com.
When a Japanese Bank Transfer Might Make More Sense
Large corporate transfers: For very large amounts (say, ¥10 million or more), some receiving institutions require or prefer SWIFT wires. Wise has transfer limits that vary by currency and verification level.
Specific banking relationships: Some financial institutions abroad will only accept incoming wires from other banks, not from non-bank payment services. Mortgage payoffs, large investment account transfers, and certain legal transactions sometimes fall into this category.
Local business requirements: If your Japanese employer needs to pay into a specific account type, or if you need a paper trail in the format a Japanese bank provides, the bank infrastructure may be necessary even at higher cost.
For everyday expat use — sending money home monthly, receiving freelance payments, covering foreign credit card bills — Wise is the better tool.
Connection to Broader Cost Management
International transfer costs are a real budget line for expats. If you are sending ¥100,000 home every month using a Japanese bank versus Wise, the difference adds up to roughly ¥60,000-70,000 per year — a month of groceries, or two months of a phone plan.
For context on overall living costs in Japan, see the Chiba vs Tokyo cost of living comparison, which covers how location choice affects your total monthly budget.
When you are ready to set up a Japanese bank account as a foundation for your finances here, the guide to opening a Japanese bank account as a foreigner covers the process, the best banks for new arrivals, and what to do if you need banking access before your Japanese account is approved.
Bottom Line
Japanese bank international wire transfers are expensive: flat fees of ¥2,500-4,000 plus a hidden 2-4% exchange rate spread plus potential correspondent bank deductions. On a modest ¥150,000 transfer, you can easily pay ¥6,000-8,000 in combined costs.
Wise uses the mid-market rate and charges a transparent fee typically under ¥1,000 for the same transfer. The savings are not marginal — they are substantial enough that using a Japanese bank for regular international transfers is hard to justify once you know the alternative exists.
Use Wise for international transfers. Use your Japanese bank for domestic payments, rent, and everything yen-denominated.