Cash or Card? Understanding Payment Methods in Japan

When visiting Japan, understanding the local payment culture can save you from potential inconveniences, especially if you assume Japan’s cashless society is similar to nearby countries like South Korea. While South Korea is over 90% cashless, Japan still heavily relies on cash, with only about 30% of transactions being cashless as of 2024.

Cash is Still King

Japan’s preference for cash is most evident in traditional tourist spots, rural areas, and local eateries, where you’ll find that many establishments only accept cash. If you’re visiting temples, shrines, or traditional restaurants around these areas, it’s best to carry yen with you. ATMs, especially those found in convenience stores like 7-Eleven and Lawson, are your go-to spots for withdrawing cash with international cards.

Credit Cards in Major Cities

In major urban centers like Tokyo, Osaka, and Kyoto, the situation is different. Most shops, restaurants, and hotels in these cities accept credit cards, making it easier for international travelers. Among credit cards, VISA is the most widely accepted, followed closely by Mastercard and JCB. However, it’s always a good idea to carry multiple cards from different companies in case one isn’t accepted.

Prepaid IC Cards: A Convenient Alternative

Prepaid IC cards like Suica or Pasmo can be used not only for public transportation but also for payments at convenience stores, vending machines, and even some restaurants and shops. These cards are widely accepted in urban areas and offer a quick and easy way to make small purchases.

Tips for Visitors

Always have cash:

Even in big cities, some places like small restaurants, local markets, or older establishments may not accept cards.

Multiple cards:

Carry more than one credit card, preferably from different providers (e.g., VISA and Mastercard), to ensure you’re covered in various situations.

Check before dining:

When entering a restaurant or café, look for card symbols at the entrance or ask if they accept credit cards before ordering.

ATMs for Foreign Cards:

If you need more cash, head to a convenience store ATM or post office, where international cards are commonly accepted.

Understanding these differences will make your trip smoother, helping you enjoy both the modern and traditional sides of Japan without financial hassles.