Credit Cards in Japan? Cash Is Still King (But…)

One of the questions we’re often asked here at Japan Travel Pros is, “can I use credit cards in Japan? Or do I have to carry cash?”

Yes!

You can use credit cards in Japan – in some places. But it’s always a good idea to have cash on you.

There’s a perception out there that Japan is this super-high-tech nation, and like all perceptions, there’s some truth to that as well as many misgivings.

When it comes to payments, Japan has a deep-rooted preference for cash that might surprise visitors accustomed to going cashless. But rather than being an inconvenience, carrying cash in Japan can actually enhance your experience in ways you might not expect.

Why Cash Still Dominates in Japan

You might wonder why a country known for its high-tech innovations still relies so heavily on cash. The reasons are both cultural and practical.

Trust and Tradition: Cash Habits in Japan

Cash has been the backbone of Japan’s economy for centuries, and there’s a strong cultural trust in physical money. 

Many Japanese people prefer cash because it’s tangible, straightforward and free from the risks of digital fraud. It’s also a matter of habit. Many small businesses, especially in rural areas, have operated on a cash-only basis for generations.

And if we can just say something about habit and change in Japan? Habits here don’t change fast. Pretty much nothing changes fast in Japan. Most of that? Most of that is great! There’s so much about Japan that I love and don’t want to see change. But there are things that even most Japanese people want some forward movement on, and the pace of adaptation can be frustratingly slow.

So seeing cash continue to be king in Japan is not surprising to me. But in recent years, largely due to the influx of tourism in Japan, cashless payments are catching on here and there.

Safety: Japan’s Low Crime Rate Allows for Peace of Mind with Cash

Japan is one of the safest countries in the world.

Now, I don’t mean to say that there is zero crime in Japan. Just for peace of mind, when you are in the cities and especially in tourist areas or in transit, it’s wise to exercise caution as you would in most destinations outside Japan.

But the fact is that Japan’s crime rate is relatively low. That makes Japanese people very comfortable carrying cash. Many Japanese, especially older generations, are also known to have large amounts of cash in their homes as well. There’s just no fear here of being robbed.

That’s another reason why credit card adoption was low for so many years. 

As a traveler to Japan, you can benefit from this by being able to carry cash with few if any worries.

Infrastructure and Accessibility: Where in Japan Cards Are Accepted vs Not

While major cities like Tokyo, Kyoto and Osaka offer plenty of places to pay by card or mobile apps, Japan’s infrastructure is still heavily cash-oriented. 

ATMs are widespread and easy to use, even for foreigners, and you’ll find them in convenience stores, post offices and banks across the country. However, not every shop, restaurant, or service accepts cards, especially in smaller towns or older establishments. 

Carrying cash ensures you’re prepared for any situation.

Benefits of Carrying Cash in Japan

Carrying cash in Japan is convenient. 

Plus, cash comes with its own set of perks that can make your trip smoother and more enjoyable.

Access to Hidden Gems by Paying with Cash in Japan

Some of the best experiences in Japan are found off the beaten path: in local markets, tiny izakayas, traditional shops and whatnot. 

These places often don’t accept credit cards, but they offer unique products and experiences that you won’t find in larger, more commercial establishments. 

Having cash on hand lets you explore hidden gems in Japan without worrying about payment options.

Smooth Transactions: Pay in Cash & Off You Go

In Japan, cash transactions are quick and efficient. 

There’s no need to wait for a card machine to process your payment or for an app to load. You simply hand over the exact amount (or close to it), and you’re done. 

That’s true for neighborhood stores, street food stands, tiny (but amazing!) restaurants and many other service providers you’ll encounter on your self-guided tour of Japan.

But what about tips? Can you tip in cash? No. There is no tipping in Japan! And amen to that.

Plus, cash payments are often more personal. Many vendors appreciate the simplicity of a cash exchange, and it can lead to friendlier interactions.

Also, bear in mind that businesses are charged credit card fees by the banks. This has a particularly disproportionate impact on small businesses.

So while that mom and pop souvenir shop or one-man (or one-woman) ramen joint might accept credit cards, they’re going to be happier if you pay in cash. Happier in the sense that they might even strike up a conversation with you. But even if they don’t, just know that you’re doing them a solid by paying in paper (and jingly money).

Cash Helps Better Budget Management When Traveling in Japan

Carrying cash can also help many travelers manage their budget better. 

Makes enough sense, right? When you physically see and handle your money, you’re more aware of your spending. It’s easier to keep track of how much you’ve spent and how much you have left, which can help you avoid overspending. 

Many travelers find that using cash makes them more mindful of purchases and encourages them to make more deliberate choices.

Discounts & Deals: Cash Can Get You Better Prices in Japan

Some businesses in Japan offer discounts for paying in cash. 

This is particularly true in smaller shops or family-run businesses where card fees can cut into profits. 

By paying in cash, you might score a small discount or an extra item added to your purchase. It could be a little bonus for choosing the traditional route. Best not to expect a discount, though; just be happy if there is.

How Much Cash Should You Carry When Traveling in Japan?

So, how much cash should you carry while traveling in Japan? 

The answer depends on your itinerary and spending habits, but there are a few guidelines to keep in mind.

Plan for Daily Expenses – Meals, Transit, Souvenirs, Etc.

For daily expenses like meals, transportation, and small purchases, having around 10,000 to 15,000 yen (roughly $70 to $100 USD) on hand is usually sufficient. 

This will cover you for most situations, including those times when you encounter a cash-only establishment.

If you don’t want to hit up an ATM every day, you can take out several days’ worth of cash at a time. This will help you avoid excessive transaction fees. Also, bear in mind that many ATMs here are not 24 hours; some have extended hours but come with higher after-hour fees, while others shut down altogether. Guess those machines must be unionized?

Using ATMs and Exchanging Money in Japan

Japan’s ATMs are foreigner-friendly, with most offering instructions in English and other languages. 

Look for ATMs at convenience stores like 7-Eleven or Lawson, as they’re reliable and easy to use. When withdrawing cash, remember that some ATMs may charge a fee, and your home bank might also apply a foreign transaction fee, so it’s worth checking in advance.

If you’re bringing foreign currency, you’ll need to exchange it for yen. You can do this at airports, banks or exchange counters in major cities. The downside is that these rates are usually not very good. You’ll usually get a better currency conversion by using an ATM or credit card payment, compared to handing over cash (USD, CAD, etc) to get yen bills.

When Cards and Digital Payments Are Accepted in Japan

While cash is king, it’s worth noting that Japan is slowly embracing digital payments, especially in urban areas. 

Major retailers, chain restaurants and hotels usually accept credit cards, and mobile payment apps like Suica, ICOCA and PayPay are becoming more popular. 

However, relying solely on digital payments can be limiting, especially if you venture outside the big cities or visit older, more traditional businesses.

Cash, Credit, Payment Apps & Phones: Your Strategy for Japan Travels

Okay, so let’s break it all down.

Carry cash with you in Japan. It helps you shop and eat anywhere, and it’s good in a pinch (like if there’s an earthquake or the bank is closed, etc). It’s better to stick to cash for small businesses.

Use credit cards in hotels, bigger stores and chain restaurants as you like. You can also pay for some traintrainsh as the shinkansen bullet train, with credit cards (but local trains require cash payment or, better yet, a payment card like Suica or ICOCA).

If you get a payment card like ICOCA or Suica, you can pay in many places beyond just transit in Japan; they work at konbini, many retailers, even vending machines. And these cards can usually be loaded onto your Apple Wallet (sometimes they can also be topped up with a credit card linked on your phone, though it’s hit and miss with cards issued outside Japan).

This three-headed payment strategy should work well for your Japan travels.

If you’ve got questions about cash or credit cards in Japan, or really anything else about traveling here, don’t hesitate to ask.

Until next time, happy travels!