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 (opens in new tab). Ensure you have a good understanding of the value of your money in Japan.

Japanese yen comes in both coins and notes.

Coins are issued in denominations of:

• ¥1
• ¥5
• ¥10
• ¥50
• ¥100
• ¥500.

Notes come in:

• ¥1,000
• ¥5,000
• ¥10,000

One thing that trips up first-time visitors is that yen has no smaller subdivision — there are no 'cents' — so all prices are in whole numbers. Japan also introduced newly redesigned banknotes in 2024, featuring updated portraits and modern security features, so don't be surprised if you receive notes that look different from older ones you may have seen in photos.

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. You must declare any cash, checks, or monetary instruments exceeding ¥1,000,000 (or equivalent in foreign currency) when entering or leaving Japan. This applies to the combined total of all currencies you are carrying.

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 (opens in new tab), such as Finland, Australia, and the UK. But, Japan has been slow to adapt modern payment systems and many shops still only accept cash.

Japan's payment landscape has transformed rapidly in recent years. The government set an ambitious target of 40% cashless transactions, and QR code payment apps and IC cards are now widely used across major cities.

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!

The major Japanese payment apps are PayPay, LINE Pay, Rakuten Pay, and au PAY. These are hugely popular among locals. However, most of these apps require a Japanese phone number or a Japanese bank account to set up — which makes them tricky for short-term tourists.

PayPay has been trialling a tourist-friendly sign-up process that allows registration with a foreign phone number and international credit card, so it is worth checking if this is available during your visit. For most tourists, though, an IC card such as Suica remains the most practical and accessible cashless option for day-to-day use.

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. Acceptance of digital wallets such as Apple Pay and Google Pay has grown significantly in Japan, particularly in major cities and chain stores. However, rural areas and smaller shops may still only accept physical cards or cash.

Always carry a physical card as a backup. Standard credit cards typically charge currency conversion fees of 2.5–3.5%, plus any additional foreign transaction fees your bank applies. Many dedicated travel credit cards waive these fees entirely, so check your card's terms before travelling.

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 (opens in new tab), and ICOCA (opens in new tab) 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

6.1. Japan Post ATM

JP Bank ATM's are also an option! JP Bank owns the national post offices. So, there will be an international ATM at any (opens in new tab) 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).

6.2. Third Party ATM in Japan

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.

6.3. Seven Bank ATM

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 (opens in new tab) 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 (opens in new tab), 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.

6.4. E-Net ATM

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.

E-Net ATMs are typically available between 7am and 11pm, so they are not a 24-hour option like Seven Bank ATMs — keep that in mind if you need cash late at night. They support major international card networks including Visa, Mastercard, Plus, and Cirrus. International withdrawal fees apply, so check with your bank beforehand. The ATM interface is available in English, making it straightforward to navigate even if your Japanese is limited. Look for the E-Net branding inside FamilyMart and Lawson stores to identify the machine quickly.

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.

7.1. Recommended Travel Money Cards:

• Wise Travel Card (opens in new tab) Best Exchange Rates
• Travelex Money Card (opens in new tab) Best All Rounder
• Revolut (opens in new tab) Best for Low Fees

Travel money cards work by allowing you to preload funds in your home currency, which are then converted and stored as a balance you can spend abroad. Some cards let you lock in the exchange rate at the time of loading, which can protect you from fluctuations in the yen rate. You can typically top them up via a mobile app before you leave home or while you are already in Japan.

For Japan specifically, travel money cards work best at Seven Bank ATMs, which support a wide range of international cards and networks. Always check whether your chosen card is compatible before you travel. Note that some cards have daily ATM withdrawal limits, so if you are heading somewhere rural and need a larger cash reserve, plan ahead.

Here is a quick summary of the three cards we recommend:

Wise Travel Card — Known for offering mid-market exchange rates with low conversion fees. Works well at Seven Bank ATMs. Ideal if you want to convert currency at a fair rate before your trip.

Travelex Money Card — A solid all-rounder with broad currency support and travel-related perks. Good for travellers who want a straightforward, preloaded option without managing multiple apps.

Revolut — Popular for its low fees and real-time exchange rates. Offers fee-free ATM withdrawals up to a monthly limit, which suits Japan well given how often you may need cash. Check the current plan limits before you travel as fee structures can change.