Spending in Japan - Cash, Card, and In Between
Japan is a consumer’s paradise. Whether your budget is that of a backpacker or a celebrity, you’re going to need to spend some kind of money. After living in and visiting Japan in several capacities over the years — I’ve learned a few things. I use a combination of each of these payment methods and will continue to do.
Cash
Cash is the most common form of payment. Despite the progress cards and wireless pay has made worldwide, Japan still very much relies on cash. There are so many small and mom & pop businesses in Japan, and it’s almost a guarantee that they don’t take card.
There are a few ways to get cash before or during your trip:
You can order cash from your bank before you depart. This is something I see a lot of first time travelers doing to avoid international fees but it is never my favorite option. You may not order the appropriate amount and you could be traveling with a large amount of cash
You could consider airport exchange if you’ve already got your own currency in hand, technically. But again, it’s not my favorite option.
I prefer to withdraw cash from local ATMs during the trip as I find that I need more. To avoid ATM and foreign transaction fees, check out Charles Schwab's Investor Checking account. ATM's are very easy to find and use, especially if you use 7/11 or other convenience stores.
At minimum I prefer to carry around 20,000 JPY to be prepared for a variety of purchases. Depending on the global economy and exchange rate it can be around 200 USD.
Credit Cards
Credit Cards are more likely to be accepted in chain stores and restaurants than elsewhere - but that is finally changing! Visitors to Japan in years past remember credit cards being used at only at very particular places. We’ve seen things come around quite a bit since then.
As an avid player of the points game, I carry multiple credit cards to Japan to make sure I’m maximizing my earning potential on dining, transportation, and more. While credit is becoming more common, it can't be assumed that it will be accepted everywhere so be sure to carry enough cash with you to cover your transactions. My card of choice for a trip like this is the Chase Sapphire. Both the Preferred and Reserve cards have no foreign transaction fees.
IC Cards
If you have a IC transportation card, you can use them as a form of wireless payment at convenience stores, vending machines, and other places. IC cards are easily recharged at train stations, on buses, and several places. You can recharge them with cash and credit cards. Generally speaking, I don’t recommend you keep a large amount of yen on your IC card in the event that you accidentally lose it. 5000 yen is typically what I’ll add to it if I plan to use it at a convenience store as well as travel.
Note: Due to the global semiconductor shortage, sale of most IC cards has been suspended as of late summer 2023. At this point they’re still available for tourists, but that is subject to change. Consider utilizing the Apple wallet app.
Touch Pay (Apple Pay)
Apple Pay, Samsung Pay and other forms of wireless payment are referred to in Japan as Touch Pay. Finally we’ve seen development and even proliferation on this front. This is something to celebrate! No matter your budget, spending in Japan is more convenient than ever.
So how did Touch Pay finally gain favor with Japanese consumers and businesses? A combination of preparing for the influx of foreign tourists ahead of the 2020 Tokyo Olympics and the need to innovate money exchange during COVID made this more common. It was incredibly difficult to rely on the good old fashioned cash to safely complete transactions in the height of COVID and with limited But like credit, it is not available everywhere. Not so confident with Japanese? Not to worry! Look at placards next to the register or ask if it’s available with key words like ‘Touch Pay’ or ‘Touch’.
No matter how you choose to pay for things, there will be plenty of places to safely spend your money.
Happy travels!
