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Money in Japan: Cash, Cards, and Digital Payments


The Japanese Yen: Currency Basics

Japan’s official currency is the yen (円, pronounced en), with the international code JPY and symbol ¥. Travelers will quickly notice the kanji “円” used in shops, menus, and signage.


Yen Denominations

  • Coins: 1, 5, 10, 50, 100, 500 yen

  • Banknotes: 1,000, 2,000, 5,000, and 10,000 yen


Travel Tip: The 2,000-yen note is rare and often a novelty item, mostly distributed in Okinawa.


Japan redesigned its banknotes in 2024 with new portraits and security features, though older bills remain valid. Coins, on the other hand, often carry cultural symbolism — for example, the 5-yen coin (go-en) is considered “lucky” and often used in shrine offerings.



Cash in Japan

Despite rising card and mobile payment adoption, cash remains king, especially in smaller towns, older shops, and family-run restaurants.


  • Where Cash is Essential: Local markets, rural inns, small temples, and some older ticket machines.

  • Useful Denominations: Keep 1,000-yen notes and 100-yen coins handy; larger bills like ¥10,000 may be refused at vending machines or small businesses.

  • Safety: Japan has one of the world’s lowest crime rates, so carrying cash is common and relatively safe. Still, use hotel safes and be mindful.

  • Coin Management: Convenience stores (7-Eleven, Lawson, FamilyMart) accept small coins, even 1-yen pieces, making it easy to “lighten” your wallet.



Credit and Debit Cards

Cards are now widely accepted in cities, department stores, and mid-range to luxury hotels, but not universal everywhere.


  • Accepted Brands: Visa and MasterCard are most common, followed by JCB, American Express, and Diners Club.

  • Transaction Fees: Many foreign-issued cards add a 1–3% surcharge. Consider travel cards (like Wise or Revolut) to minimize costs.

  • Payment Methods: Swipe, chip insert, and contactless “tap” (touch) are all supported. Occasionally, shops may still ask for a signature.

  • Always Carry Backup Cash: Even in Tokyo or Kyoto, some restaurants or smaller bars remain cash-only.



IC Transit Cards (Suica, PASMO, & More)

Japan’s rechargeable IC cards are a traveler’s best friend for trains, buses, and small purchases.


  • Popular Cards: Suica, PASMO (Tokyo), ICOCA (Osaka), Kitaca (Hokkaido), TOICA, and others.

  • Interoperability: All major IC cards work across most cities, though balance refunds may require returning the card to its issuing region.

  • Where You Can Use Them: Train stations, buses, vending machines, convenience stores, cafés, and even some restaurants.

  • Digital Options:

    • iPhone: Suica/PASMO can be added directly to Apple Wallet.

    • Android (Japan models): Requires FeliCa/Osaifu-Keitai compatibility.


Insider Tip: Suica and PASMO can now be purchased digitally, making them easier for short-term visitors who don’t want to manage physical cards.



Mobile & Digital Payments

Japan’s mobile payment market has exploded, but many services require a Japanese phone number or residency.


  • Major Apps: PayPay, MerPay (by Mercari), Rakuten Pay, d-Barai.

  • How They Work: Payments via QR code scans, contactless terminals, or app-generated barcodes.

  • Who Can Use Them: Most require a Japanese bank account or phone contract. For visitors, international wallets like Apple Pay (with Suica) or Google Pay are the best options.



Getting Yen in Japan

ATMs

Foreign travelers can reliably withdraw yen from:

  • 7-Eleven ATMs: 20,000+ locations, 24/7 service, multi-language menus.

  • Japan Post ATMs: 26,000+ nationwide, often in post offices, malls, or supermarkets.

  • FamilyMart (E-net) ATMs: Accept many foreign cards.


Note: Some ATMs may charge higher fees outside business hours (9am–5pm). Always check your home bank’s international withdrawal fees.


Currency Exchange

  • Best Rates: Banks, post offices, and authorized money changers in cities.

  • At Airports: Convenient but less favorable rates.

  • Hotels & Department Stores: Offer exchange services, usually at higher fees.


Pro Tip: Exchange only a small amount at the airport for immediate needs, then seek better rates in the city.


Traveler’s Checks

Rarely used today, but still accepted at some banks, major hotels, and upscale ryokan. They often provide better exchange rates than airport counters but aren’t practical for everyday spending.



Money Etiquette in Japan


  • No Tipping: Tipping is not expected and may be refused. Exceptional gestures (tour guides, ryokan staff) should be placed in an envelope and handed directly.

  • Cash Trays: Shops and restaurants often provide a tray for money exchange — place bills and coins there instead of directly in someone’s hand.

  • Consumption Tax: Currently 10% (8% for takeaway food). Prices are sometimes listed pre-tax, but final totals must include tax.

  • Exchanging Abroad vs. Japan: Rates are usually better in Japan, especially at city banks compared to airports.



Japanese Yen Denominations


Coins

  • ¥1: Lightweight aluminum, symbolizing growth with a sapling design. Floats on water.



  • ¥5: Brass with a central hole, featuring rice and water motifs; considered lucky (go-en sounds like “good fortune”).



  • ¥10: Copper with Byōdō-in Temple depicted; smooth edges.



  • ¥50: Silver with chrysanthemums and a central hole.



  • ¥100: Silver with sakura blossoms; widely used.



  • ¥500: Largest coin, gold-toned, with paulownia motifs. Often used for vending machines, lockers, and “one-coin” meals.



Banknotes

  • ¥1,000: Features bacteriologist Kitasato Shibasaburō (2024 redesign) and Hokusai’s Great Wave off Kanagawa.


  • ¥2,000: Issued in 2000 with Shureimon Gate (Okinawa) and a Tale of Genji scene. Rare but still valid.


  • ¥5,000: Honors Tsuda Umeko, pioneer in women’s education, with wisteria on the reverse.

  • ¥10,000: Features Eiichi Shibusawa, “father of Japanese capitalism,” with Tokyo Station on the reverse.


Final Thoughts

Money in Japan blends the traditional and the modern. Cash is still widely expected, yet IC cards and mobile wallets make daily life smoother in cities. ATMs are abundant, and exchange options are straightforward if you know where to look.


The key for travelers is balance: carry some cash for small vendors and rural trips, use IC cards for convenience, and rely on credit/debit cards at hotels and major retailers. This flexibility ensures you’ll never be caught off guard when paying in Japan.


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