Transfer money to Japan from Hong Kong: Fees and speed

Key takeaways

• You can send money to Japan from Hong Kong via a bank, a money changer, Japan Post Bank, or a one-stop financial platform, each with different costs, speeds, and documentation requirements.

• When comparing costs, you need to look at the exchange rate markup, the flat transfer fee, and any intermediary bank charges.

• Airwallex lets Hong Kong businesses send money to Japan at interbank FX rates, with approximately 93% of transfers arriving the same day or within a few hours.

Japan and Hong Kong have been important partners for each other in terms of tourism and commerce. With the continuous depreciation of the Japanese Yen, many Hongkongers have seized the opportunity to convert their currency into Yen with the low exchange rate. 

This article will walk you through the four main ways to send money to Japan from Hong Kong, how to compare the real cost of each one, what details you need to make a transfer, and what to check before sending a large amount.

Four common ways to transfer money to Japan from Hong Kong

Bank telegraphic transfers

This method directly sends funds from your bank account to the account of Japanese suppliers or companies. However, the exchange rates set by banks are usually higher than the market rate, and handling fees might be involved. The time needed for the transaction to be completed also depends on the transfer amounts as well as the cut-off time for processing. It often takes 1 to 5 days for the funds to arrive at the recipient’s account.

Money changers

Some money changers in Hong Kong provide remittance services but come with rather complex procedures. The remitter may be required to pay the transfer amount to the shop in the first place through the Faster Payment System (FPS), or with cash or cheque. However, this method may result in higher costs as the exchange rate will be based on the real-time rate with other handling fees applied, and it’s often hard for the transaction to be completed on the same day. It usually takes at least one day. Therefore, this method is more suitable for small transfers to Japan. Businesses should note that they may be required to provide documents such as Business Registration Certificates during the process.

Japan Post Bank

According to Japan Post Bank’s official website, you will have to create a Japan Post Bank account and transfer the money in US dollars or euros through an intermediary bank (either Deutsche Bank Trust Company Americas NY or Deutsche Bank AG Frankfurt) first. Then, you will have to exchange the funds into Japanese Yen at the rate provided by Japan Post Bank before sending it forward to the recipient. You will have to bear the handling fees and currency conversion costs resulting from the conversion between US dollars, euros, and Japanese Yen.

Airwallex

Airwallex is an all-in-one leading global financial platform to manage everything from payments, transfers, currency exchange, and beyond. You can transfer money to Japan conveniently, efficiently, and at low cost through Airwallex. The platform emphasises no account opening fees. There are also no minimum balance requirements. It supports a wide range of currencies so that you can save on currency conversion costs when marking transactions. 93% of ‌global transfers can be credited on the same day.

How to transfer money to Japan: What you need

Before you start a transfer, you'll need to gather the recipient's bank details and understand the basic steps. If you have everything ready upfront, the process is faster and you're less likely to run into delays or failed transfers.

How to transfer money to Japan: Step by step

1. Open or log into your account. Whether you're using a bank or a platform like Airwallex, you'll need an active account with that provider.

2. Add the recipient's details. Enter the recipient's full name, bank name, branch name, account type, account number, and SWIFT/BIC code.

3. Enter the transfer amount and currency. Set how much you want to send and whether you're sending in HKD, to be converted, or directly in JPY if you already hold yen.

4. Review the exchange rate and fees. Before you confirm anything, check the rate you've been offered and any fees that apply.

5. Confirm and send. Once you're happy with the rate and fees, confirm the transfer. Most platforms will give you a reference number and let you track the transfer status.

What information do you need to send money to Japan?

To complete an international transfer to a Japanese bank account, you'll usually need:

• Recipient's full name. This has to match the name on their Japanese bank account exactly.

• Bank name. The name of the recipient's bank in Japan.

• Branch name. Japanese banks often ask for the exact branch where the account is held.

• Account type. Usually "ordinary" (普通) or "current" (当座), so check with your recipient.

• Account number. The recipient's account number at their Japanese bank.

• SWIFT/BIC code. This is required for international transfers, even if the recipient uses a domestic Japanese bank.

• Recipient's address. Some platforms ask for this as well, so it's worth having it ready.

Costs for transferring money to Japan from Hong Kong

The costs for transferring money from Hong Kong to Japan vary depending on which remittance method is used. There are three parts to the real cost, and if you understand all three, it's much easier to compare your options properly.

The three components of transfer cost

• Exchange rate markup. This is the difference between the interbank rate, the rate banks use with each other. This is often where you pay the most, even when the flat fee looks small.

• Flat transfer fee. Banks and money changers usually charge a fixed fee for each transfer. This varies depending on the provider and the transfer method.

• Intermediary bank charges. If your transfer goes through an intermediary bank, which is common with SWIFT transfers, that bank may take its own fee out of the amount before the money reaches the recipient.

When you compare transfer options, add up all three parts to get the true cost. A provider with a low flat fee but a wide exchange rate spread may end up costing more than one with a higher fee but a tighter spread.

Comparing different ways to transfer money to Japan

The table below shows how the three main options compare on the key factors that affect your transfer.

What to consider before making large transfers to Japan from Hong Kong

Before making large transfers to Japan, you should consider the following points:

• Payment procedures and limits: Understand the maximum transfer limit of different remittance methods. Learn what kind of information you should provide, such as the purpose of remittance and any specific supporting documents.

• Real-time exchange rates and handling fees: Study the trend of the JPY-HKD exchange rate and find the best currency conversion and remittance timing. Then, compare the exchange rates and the amount of handling fees of different banks. You may also opt for Airwallex, which offers competitive exchange rates.

• Speed and reliability: The transaction processing lead time of different banks and third-party remittance platforms varies. Businesses may have to make urgent payments sometimes. Therefore, they should consider a platform or remittance method that can offer large convenience and high efficiency in completing transactions. 

• Security and licences: Carefully choose a bank or a remittance platform that is reputable and trustworthy. Make sure your personal and financial information is protected by professional security systems.

• Risks associated with different remittance methods: Select a bank or platform that allows you to track the status of the remittance online or through a mobile application so that you can reduce risks that could be caused by remittance delays.

All-in-one financial and transfer platform: Airwallex

Airwallex is an all-in-one leading global financial platform for modern businesses. It allows users to create business accounts in just a few minutes to save time and costs. The platform is a licensed money service operator (MSO License No. 16-09-01929) regulated by the Hong Kong Customs and Excise Department. It provides cross-border payment collection and transfer services. Here are the key features that help you move funds to Japan quickly, transparently, and at lower cost:

• Competitive exchange rates. FX fees start from a markup of 0.2% above the interbank rate, which is significantly less than the spread most banks apply.

• Competitive fees. There are no account opening fees and no monthly fees.

• Fast transfers. Approximately 93% of transfers arrive the same day or within a few hours, so your suppliers and partners in Japan get the funds quickly.

• No transfer limits. Airwallex doesn't impose platform-level transfer limits, which gives you more flexibility for larger payments.

• Real-time tracking. You can track your transfer status online, so you always know where your money is.

Open an Airwallex business account to start sending money to Japan at lower cost and with faster speed.

Frequently asked questions

1. Are there any transfer limits for remittance to Japan?

Yes. If you are choosing telegraphic transfers, each bank has different daily limits for the transfer amounts. There are also differences between the transfer limits for registered and non-registered recipients. However, Airwallex as a financial platform itself doesn’t impose transfer limits.

2. What payment methods are available for transferring money to Japan?

As mentioned above, there are four common methods – through bank telegraphic transfers, money changers, Japan Post Bank accounts, and platforms like Airwallex.

3. Can I use PayMe, FPS, or AlipayHK to send money to Japan?

No. These are domestic payment tools built for transfers within Hong Kong. They don't support international remittances to Japan. To send money to Japan, you'll need to use a bank, money changer, Japan Post Bank, or a specialist financial platform like Airwallex.

4. How long does it take to transfer money to Japan from Hong Kong?

That depends on the method. Bank telegraphic transfers usually take several working days, and sometimes longer if the transfer goes through an intermediary bank. Money changers usually take a working day or more. With Airwallex, approximately 93% of transfers arrive the same day or within a few hours.