Send Business Payments from Canada to Japan

Last Updated: 25 Sep 2025

Make cross-border growth simple with efficient transfers from Canada to Japan. This guide explains how to send payments to Japan for business expenses, manage costs of CAD to JPY transfers, and keep supply chains strong. Learn how MTFX helps companies move funds securely and save on international transactions.

Expanding into international markets calls for efficient and reliable financial processes - and Japan remains one of Canada’s key trading partners. For many organisations, sending payments to Japan for business expenses is an essential part of daily operations, whether it’s purchasing goods, paying contractors, or settling royalties. Seamless transfers help keep supply chains steady, strengthen partnerships, and create room for long-term growth.

This guide will walk you through how to move funds between Canada and Japan with confidence. It covers transfer costs, compliance requirements, payment speed, and strategies to manage currency risk, while highlighting why choosing a dependable payment partner can help you save money and keep cross-border operations running smoothly.

Understanding the Canada-Japan payment corridor

Canada and Japan maintain a strong bilateral trade relationship, with Canada’s merchandise exports to Japan totaling CAD $15.0 billion in 2024 and imports from Japan reaching about CAD $21.4 billion over the same period.

That makes Japan one of Canada’s largest trading partners in Asia, and highlights why Canadian businesses often need to send money to Japan for business operations like settling invoices or funding cross-border supply activities. In June 2025 alone, Canada exported about CAD $1.06 billion in goods to Japan, and imported approximately CAD $1.78 billion, resulting in a monthly trade deficit of roughly CAD $712 million.

These figures show consistent, significant flows of goods and services both ways—strong imports, strong exports, and a regular need for international business payments to Japan. For businesses in Canada, this means that the Canada-Japan payment corridor isn’t just about occasional transactions: it’s a backbone for frequent cross-border financial activity. Understanding this volume and the trade balance helps shape decisions around exchange rates, payment timing, and provider choice when sending money to Japan for business.

MTFX banner encouraging businesses to get a better CAD to JPY exchange rate than traditional banks, with a call-to-action button reading ‘Compare rates.

The true cost of international transfers

When Canadian businesses send money to Japan for business purposes, one of the primary costs comes from foreign exchange (FX) rate differences. The Bank of Canada publishes annual average exchange rates, which show how many Canadian dollars are needed to buy one unit of foreign currency such as the Japanese yen. These published rates serve as benchmarks; many financial institutions apply less favourable rates (i.e., a higher CAD cost per JPY) when facilitating transfers.

Currency volatility further raises costs when you pay suppliers in Japan. Export Development Canada (EDC) highlights that fluctuations in exchange rates—whether driven by global commodity prices, interest rate differentials, or geopolitical risk—can squeeze margins for exporters. Even modest swings in FX rates change the CAD amount needed for a given payment in JPY, sometimes substantially.

Although government sources do not always break down every hidden fee (intermediary bank fees, conversion add-ons, etc.), the combined effect of unfavourable FX markups and volatility means that businesses making international transfers—especially when they send money to Japan for business or pay suppliers in Japan—often face costs several percentage points above the published rate. This makes selecting efficient payment providers and timing payments wisely critically important.

Regulatory, legal & compliance considerations

When making Canadian business payments to Japan, companies must follow Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act, overseen by FINTRAC. Any transfer over CAD $10,000 in a single transaction must be reported, with proper records maintained.

Japan’s Foreign Exchange and Foreign Trade Act (FEFTA) regulates cross-border payments to Japan, requiring clear payment purpose, beneficiary checks and, for certain transactions, notification to authorities.

Both jurisdictions expect accurate beneficiary details, KYC procedures and adherence to SWIFT or similar standards. Complying with these measures helps businesses send money to Japan for legitimate business needs while reducing delays and compliance risks.

Speed, reliability & efficiency in transfer options

When Canadian companies make export or import payments to Japan, choosing the right transfer channel can have a big impact on delivery time and cost. Traditional bank wires sent through SWIFT often take 1–5 business days to settle international transfers.

Businesses that need to send money to Japan may find that hybrid solutions or specialists such as MTFX provide faster business settlements by limiting intermediary banks and offering more direct routing.

For smooth CAD to JPY business transfers, timing and accuracy matter. Bank cut-off times, the gap between Canadian and Japanese business hours, and errors in beneficiary information can all delay completion. Using a platform with clear tracking and confirmations helps ensure funds arrive on schedule and supports efficient cross-border operations.

Business use cases: why companies send money to Japan from Canada

Canadian businesses often transfer money to Japan to support everyday operations and long-term growth. One of the best ways to pay suppliers in Japan is through fast, low-cost transfers that keep supply chains running without delays. Companies also send funds to lease or buy offices, warehouses, or production sites as they expand into the Japanese market.

Beyond procurement and facilities, businesses handle payroll for local staff, payments to contractors, and settlements for royalties, intellectual property, or research agreements. Using secure cross-border channels helps organisations maintain reliable cash flow, strengthen partnerships, and meet obligations efficiently when they transfer money between Canada and Japan.

Managing currency risk and exchange rate strategy

Movements in the CAD to JPY exchange rate can significantly influence costs. Even small shifts between the Canadian dollar and the yen may change the amount required for large transfers.

To protect margins, companies sending money abroad adopt strategies such as forward contracts, market alerts, or scheduling payments when rates are favourable. Timing a business money transfer to Japan carefully—whether for paying suppliers, covering salaries, or funding partnerships—can make budgets more predictable and reduce exposure to currency swings. Platforms that offer live currency exchange rates and planning tools give organisations greater control over cross-border transactions.

Comparing transfer providers: banks vs fintechs vs others

When companies need to manage a CAD to JPY currency exchange for business transactions, the choice of provider can determine both cost and speed. Traditional banks remain a familiar option, but they often apply higher FX markups, charge multiple fees, and take several days to settle cross-border payments. Service levels may also vary, with limited visibility over intermediary deductions.

Specialist fintech platforms, like MTFX, now offer a faster, more transparent way to send money to Japan for business purposes. MTFX uses live market rates with smaller markups, provide same-day or next-day settlement, and offer clear dashboards for tracking transfers. We also integrate multi-currency accounts and payment automation, helping your finance teams manage global cash flow more efficiently.

Other non-bank providers, such as brokers or hybrid services, can be an option but may lack the same level of technology or support. For most organisations, fintech solutions present the best way to pay suppliers in Japan or handle other business purposes, combining speed, competitive pricing, and reliable customer service.

The future of Canada-Japan business payments

The landscape for international business payments to Japan is evolving quickly as faster payment rails and real-time settlement systems gain traction worldwide. Canada is exploring upgrades to its payments infrastructure, including the Real-Time Rail initiative, while Japan continues to enhance its Zengin System to support near-instant domestic clearing. Together, these developments will shorten settlement windows and make sending money to Japan for businesses faster and more efficient.

Policy shifts may also influence cross-border flows. Japan’s ongoing reviews of foreign-exchange rules aim to simplify compliance for legitimate trade, while Canadian regulators continue to refine fintech standards to encourage innovation without compromising security. According to Statistics Canada, merchandise trade between Canada and Japan surpassed CAD $36 billion in 2024, highlighting how efficient payments underpin a substantial economic link.

Businesses can prepare by adopting platforms that support real-time tracking, transparent FX pricing, and robust compliance tools, positioning them to benefit as payment networks between Canada and Japan become faster and more seamless.

Marketing graphic from MTFX encouraging companies to streamline international business transfers, with tips on saving fees and accessing better exchange rates.

Transform the way businesses send money to Japan

As trade between Canada and Japan continues to expand, businesses need fast, transparent and cost-effective solutions to move funds across borders. Choosing the right platform can make every transaction - from supplier invoices to payroll - simpler and more reliable. Whether you’re settling import contracts, funding partnerships or managing routine expenses, finding an efficient way to send money to Japan for business helps protect margins and strengthen relationships.

Take the next step toward streamlined cross-border transfers. Open an account with MTFX today and start sending payments to Japan with competitive rates, clear tracking and the speed your business deserves.

FAQs

1. How can businesses protect themselves from volatility in the CAD/JPY exchange rate?

Companies can manage risk by using forward contracts, setting rate alerts, or timing payments when the exchange rate is favourable.

2. What fees are usually involved in transferring money from Canada to Japan for business purposes?

Fees may include a transfer charge, FX rate markup, and intermediary bank fees. Choosing a provider with transparent pricing helps you understand the full cost upfront.

3. How does the CAD to JPY exchange rate for business transactions affect payment costs?

Exchange rate changes can significantly impact how much Canadian dollars you need for yen payments. Shifts in the CAD to JPY exchange rates can have a noticeable impact on overall costs.

4. Are there hidden charges when using traditional banks for business transfers to Japan?

Yes, banks often include extra FX markups and intermediary fees that aren’t always visible. Comparing providers helps avoid these hidden costs.

5. How can businesses save money on international payments to Japan?

Businesses can save by using platforms with real-time exchange rates, setting up bulk transfers, and scheduling payments when market rates are favourable.

6. Do I need a Japanese bank account to send payments to Japan for business expenses?

No, you don’t need an account in Japan to transfer funds. Canadian businesses can send payments to Japan directly to a supplier or partner’s local account with MTFX as long as you have accurate beneficiary and banking details.

7. How can I avoid delays when I send payments to Japan for business expenses?

Always submit transfers before daily cut-off times and confirm beneficiary details are correct. Aligning payments with Japanese business hours also helps prevent processing delays. Also, if you choose MTFX, we can help you deliver payments within a day to Japan.

8. How long should I keep records after I send payments to Japan for business expenses?

Keep invoices, contracts, and confirmation receipts for at least five years. Proper records support audits, tax filings, and future reference for cross-border transactions.