Cash, Cards, and IC Cards: Understanding Money in Japan

It was common knowledge that Japan was a mostly cash-only country. Even in major cities like Tokyo and Osaka, you would have had trouble getting by with just a credit card. Times are changing, though. Cards and mobile payments are more accepted than ever. Here is what you need to know about money in Japan.

Do I Actually Need Cash?

In most cases, yes.

It is not as bad as it used to be, but cash is still a necessity in Japan. There are plenty of places, especially outside major cities, that either only accept cash or strongly prefer it.

Places where you should expect to pay cash:

• Temples and shrines
• Parks and gardens (entry fees, vendors)
• Taxis
• Local restaurants, especially in rural areas
• Some vending machines
• Street food stalls and festivals

Even in Tokyo, not every restaurant accepts cards. It is getting better, but it is not a sure thing.

How Much Should I Carry?

Keep somewhere between ¥10,000 and ¥20,000 on you at all times. That is roughly $65 to $130 USD. Enough to cover unexpected cash-only situations without carrying so much that losing it would ruin your day.

As for safety, pickpocketing is far less common in Japan than in most other countries. Do not let your guard down entirely just because you are in Japan, and do not be obvious about flashing large amounts of cash. That said, you do not need to be looking over your shoulder constantly either. Just use common sense.

Where Do I Get Cash?

7-Eleven ATMs. They accept international cards, they are reliable, and they are everywhere. If you need cash during your trip, find a 7-Eleven. Problem solved.

Japan Post Office ATMs are another solid option and also accept international cards. You will find them in post offices across the country.

A couple of things to keep in mind:

• Some ATMs have limited operating hours, so do not assume they all run 24/7
• Your bank back home may charge international withdrawal fees. Check before you leave. Some travel cards waive these entirely.
• Airport currency exchange counters work fine for a small amount when you land, though the rates are not great. Do not convert everything there.

A Note About Coins

Nobody warns you about this, and it catches everyone off guard.

Japan uses coins up to ¥500, which is worth about $3.50 USD right now. That is not pocket change. You will accumulate a surprising number of coins, especially if you regularly pay with cash.

It is not uncommon for people to carry a coin purse or a wallet with a separate zippered coin section. This is not just a convenience. It becomes a necessity. You can make real purchases with coins in Japan, so do not leave them sitting in a hotel room. Carry them and spend them down at convenience stores and vending machines whenever you can.

What About Cards and Mobile Payments?

Credit and debit cards are much more accepted than they used to be, particularly at chains and larger stores in urban areas. Visa and Mastercard have the widest acceptance. Use them where you can, and look for signage near registers or on doors indicating what is accepted.

Tap-to-pay is growing. Apple Pay and Google Pay generally work wherever contactless payments are accepted.

QR code payments like PayPay are everywhere in Japan, but here is the catch: most of them require a Japanese bank account. If you are visiting on a tourist visa, do not count on being able to use them. AliPay is one exception that is widely accepted.

IC cards (Suica, Pasmo, ICOCA) used to be just for trains and buses, but they are expanding into retail as well. Convenience stores, vending machines, and some malls accept them. Getting an IC card when you arrive is worth it for transportation alone, and the fact that it doubles as a payment method in certain places is a bonus.

So What Should I Actually Carry?

Japan’s payment landscape is shifting, making it a little easier for foreign visitors each year. It is still not completely cashless, though.

The safest approach is simple:

• Cash for the small stuff and the places that require it
• A credit or debit card for bigger purchases
• An IC card for transportation and quick buys at convenience stores

That combination covers virtually everything. If you are ever in a pinch, search for the nearest 7-Eleven ATM. You will find one.

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The Culture Shock Japan app covers all of this and more: etiquette guides, transport tips, useful phrases, and practical tools to make your trip easier. Available on iOS.