Why You Need to Use Cash in Japan as a Tourist

Japan is renowned for being technologically advanced yet cash is still the most predominant payment method across the country. In fact, four out of five purchases are still made with cash.

With foreign-friendly ATMs still somewhat elusive and over-the-counter card payments patchy, the best way to take money to Japan involves combining a number of options.

Do You Need Cash in Japan?

Yes. You will need cash if you want to travel around Japan. It is a country were cash is still the most common way to pay for things. Despite the growing acceptance of cards, many establishments prefer or only accept cash. Here are some situations where having cash on hand is indispensable:

  • Markets: Traditional markets, local food stalls, and flea markets typically operate on a cash-only basis.
  • Tips: While tipping isn't customary in Japan, it's always done in cash if you choose to tip.
  • Free Walking Tours: Guides often appreciate cash tips.
  • Tourist Tax: Some accommodations may require a small tax payable in cash.
  • Some Public Transport: Rural buses and local train lines may only accept cash.
  • Toilets: Certain public restrooms may charge a small fee, and cash is the only accepted payment.

 

Carrying Cash

In Japan, carrying cash is common and quite safe due to the country's low crime rate. However, using a money belt or a secure wallet is always a good idea to keep your cash safe. The Japanese yen is available in both coins and banknotes, so it's helpful to have a coin purse as well.

Yen Denominations: Yen banknotes are available in 1,000, 2,000, 5,000, and 10,000 yen, and coins come in 1, 5, 10, 50, 100, and 500 yen. It's wise to carry smaller denominations for convenience in everyday transactions.

Money, Japanese yen banknotes, and calculator on wood table

Cash Etiquette

Japan has specific etiquette when it comes to handling cash. Here's what you need to know:

  • Using Trays: In many stores and restaurants, small trays are available at the cash register. Instead of handing your cash or card directly to the cashier, place it on the tray.
  • Respecting the Yen: Keep your bills neat and avoid crumpling them. It's common to see people using a wallet designed to keep bills flat.

 

The Currencies They Accept

As an overseas traveler, you might wonder if you can use your home currency in Japan. Here's what you need to know:

Limited Acceptance: Euros, Australian or US dollars are not widely accepted in Japan. Unlike some countries that might take major foreign currencies in tourist-heavy areas, Japan typically requires transactions to be conducted in Japanese yen. This applies to everything from hotel stays to restaurant bills and shopping.

 

Updated: Posted on