Managing Money in Japan: Cash, Credit, and Payment Apps

Japan's payment methods are not overly complicated. But, there are some noticeable differences from other countries. This article explains money in Japan and breaks down different payment options.

Why is this a topic you should care about? Because understanding how to handle money payment can help you to communicate. It makes your dream holiday in Japan more comfortable and stress-free.

1. What is the Currency of Japan?

The currency of Japan is the Japanese Yen (JPY). The symbol for yen is "¥". However, the Japanese kanji character is 円, but it is pronounced "en". It's important to familiarize yourself with the current exchange rate. Ensure you have a good understanding of the value of your money in Japan.

2. Japan is Still a Cash-Carrying Society

Japan is still mostly dealing in hard cash. Local and rural restaurants, markets, ryokan (traditional Japanese inn) often only accept cash.

The good news is there is no limit to the amount of cash you can bring in or take out of Japan. However, you do need to declare all cash over ￥1,000,000.

You can exchange at airports, banks, and hotels but often the rate is not very attractive. I would advise that you exchange your cash before you reach your destination. Cash rate exchange has become more difficult in recent years since there are fewer bank branches open than previous years. Cash-only options are even more common in rural areas.

3. The Growing Popularity of Japan Cashless Payment

Many countries are becoming cashless societies, such as Finland, Australia, and the UK. But, Japan has been slow to adapt modern payment systems and many shops still only accept cash.

However, since 2020, the Japanese money situation has begun to change. Japanese payment phone apps are now a popular option for young people. In fact, payment apps have become a popular alternative to Japanese credit cards. However, Japanese payment apps are preferred over foreign options. You will find that even modern vending machines accept app payment. You will find this to be a lifesaver when you are traveling in the Japanese summer!

4. Japanese Credit Cards are Not Widely Used

Due to credit card charges, many retailers in Japan don't want to accept credit cards. This is because they don't want to pass the cost onto the customer. This does NOT mean that credit card payment is non-existent. But it does mean that credit card payment options are often limited or even absent in some shops, restaurants, or bars.

Hotels accept major Credit but they are not widely accepted outside major cities. Ensure you card has your name on the front or it could get rejected. You can only use the physical card not digital cards stored in your phone as an app. Japan has not yet started using digital cards. Unless you have an international credit card, you may incur exchange rate and currency conversion fees between 2.5-5%.

5. Prepaid IC Cards: Japan's e-wallets

Japan's prepaid IC cards serve as 'e-wallets', used for electronic payments. Their main intended use is for public transport. But, they can also be used to make everyday purchases. They are accepted in stores, vending machines, and cafes.

The most popular IC cards are the Suica. Pasmo, and ICOCA cards. What is the difference between these Japanese prepaid cards? The answer is 'not much'. They are all sold in different areas of Japan.

Do you want to know more about these prepaid cards for your trip to Japan? Then, check out our article about IC cards in Japan.

6. Where to Withdraw Cash in Japan

JP Bank ATM's are also an option! JP Bank owns the national post offices. So, there will be an international ATM at any post office that you find. Post offices are usually located near major central train stations and the ATM's are usually accessible 24hrs (WARNING: This might not be the case in rural areas or some national holidays).

There has been a rise in third-party ATM's, which are mostly found in convenient stores, supermarkets, and around train stations. This is good for tourists as most of these (not all) support international cash withdrawal. Look at the sign above the ATM to find an illustrated list of the different cards that they accept.

Seven Bank ATM are the best option when withdrawing cash in Japan using an overseas cash card. The international convenience store chain, 7-Eleven (known as 7 & i Holdings in Japan) can be found all over the country. You can usually find them close to other convenience store chains. They are everywhere! And they all have ATM owned by Seven Bank, which specialize in international banking.

Personally, I use Seven Bank ATM when I need to access my account from back home. They are easy to find and use.

These ATM are available from convenience stores Family Mart and Lawson. These convenience stores are commonly available are Japan, however, they usually don't have as many bank options as the Seven Bank ATM.

7. Travel Money Cards

Travel Money Cards are popular because they offer:

• No or low currency conversion and foreign transaction fees.
• No or low ATM operator fee.
• Travel extras: insurance, airport lounges, worldwide concierge service, etc.

• Wise Travel Card Best Exchange Rates
• Travelex Money Card Best All Rounder
• Revolut Best for Low Fees