When traveling to Japan, understanding the country’s payment system is crucial for a smooth experience. Japan has a reputation for being a cash-centric society, but recent years have seen a significant rise in cashless payments. With mobile payment apps like PayPay Japan and the growing adoption of credit cards and IC cards, tourists have more payment options than ever before.
This guide explores cashless payment trends in Japan, the use of Japanese yen coins, and answers important questions like What percentage of Japanese payments are cashless? and What is the most popular payment method in Japan?. By the end of this article, you’ll have a clear understanding of how to pay in Japan and what to expect when shopping, dining, or using public transportation.
1. Is Japan Mostly Cashless? A Look at the Trends
Despite its advanced technology, Japan has historically relied on cash for daily transactions. However, cashless payments have been gaining traction in recent years due to government initiatives, fintech innovations, and changes in consumer behavior.
Cashless Payments in Japan: The Current Landscape
- In 2023, cashless payments accounted for over one-third of all spending in Japan.
- The Japanese government aims to increase cashless payment adoption to 40% by 2025 and 80% in the future.
- The rise of mobile payment services like PayPay Japan, LINE Pay, and Rakuten Pay is making digital transactions more convenient.
- International credit cards such as Visa, Mastercard, and American Express are widely accepted in urban areas but may not work everywhere.
- Many small businesses, rural shops, and traditional markets still prefer cash.
Overall, Japan is moving towards a cashless society, but cash remains a dominant payment method in many situations.
2. What Percentage of Japanese Payments Are Cashless?
According to recent studies, cashless payments accounted for approximately 39% of total spending in Japan in 2023. Compared to countries like South Korea (94%) or China (86%), Japan still has a long way to go in adopting a fully digital payment system.
Breakdown of Payment Methods in Japan (2023 Data):
Payment Method | Percentage of Total Transactions |
Cash | 61% |
Credit/Debit Cards | 34% |
Mobile Payments | 3% |
IC Cards (Suica, Pasmo, etc.) | 2% |
While the cashless payment ratio is growing, cash remains the most used form of payment for many everyday purchases.
3. The Role of Japanese Yen Coins in Daily Transactions
Even as cashless payments grow, Japanese yen coins remain essential for travelers. Here’s why:
- Coin-operated vending machines and lockers are common, and many do not accept cashless payments.
- Small purchases at convenience stores, local shops, and shrines may require coins.
- Public transportation systems often accept IC cards but may still require cash for certain rural bus routes.
- Capsule toy machines and arcades primarily accept 100-yen coins.
Denominations of Japanese Yen Coins:
Coin | Value |
1 yen | Lightweight aluminum coin, rarely used in major transactions |
5 yen | Has a hole in the center & Considered lucky; commonly used for temple donations |
10 yen | Frequently used in vending machines and small transactions |
50 yen | Has a hole in the center; useful for various purchases |
100 yen | Most commonly used for everyday transactions |
500 yen | High-value coin, accepted in many machines and stores |
4. The Limitations of PayPay Japan and Other Digital Wallets for Foreign Tourists
Many visitors to Japan may have heard of PayPay Japan, a popular digital wallet launched in 2018. However, it is important to note that PayPay and similar services are not accessible to most travelers from Western countries.
Why Can’t Most Foreign Tourists Use PayPay Japan?
- PayPay and other QR-based payment apps require a Japanese bank account or credit card.
- Some services, such as AliPay and WeChat Pay, cater mainly to visitors from China and other Asian countries.
- Foreign credit or debit cards cannot be linked to these services.
- Registration often requires a Japanese phone number, making it inaccessible to short-term visitors.
Alternative Payment Methods for Western Travelers
For tourists from Europe, North America, and other non-Asian countries, the most reliable cashless payment methods in Japan are:
- Credit and Debit Cards: Visa, Mastercard, and AMEX are widely accepted in urban areas, department stores, and hotels.
- IC Cards (Suica, Pasmo, ICOCA): These prepaid transportation cards can be used for public transport, convenience stores, and vending machines.
- Contactless Payments: Many retailers accept NFC-based payment methods like Apple Pay and Google Pay, provided they are linked to a supported credit card.
What Should Tourists Do?
- Bring a credit/debit card with international compatibility (Visa or Mastercard recommended).
- Obtain an IC card like Suica or Pasmo for convenient public transport and small purchases.
- Carry some cash for smaller shops, local markets, and rural areas.
5. NFC-Compatible Devices and Contactless Payments for Travelers
NFC (Near Field Communication) technology is widely used in Japan for cashless payments. Many travelers can make payments using their NFC-compatible devices without needing additional equipment. However, it is important to note that Japan uses a different NFC standard (FeliCa) compared to other countries.
What Are NFC-Compatible Devices?
- Smartphones: Most modern iPhones support both global NFC standards and Japan’s FeliCa system. However, some Android smartphones sold outside Japan may lack FeliCa support, meaning they cannot use Suica or Pasmo.
- Smartwatches: Devices like Apple Watch and some Samsung Galaxy Watch models support NFC payments, but again, FeliCa compatibility is required for Suica and similar services.
- IC Cards (Suica, Pasmo, ICOCA): Prepaid transportation cards that also work at convenience stores, vending machines, and restaurants.
- Contactless Credit/Debit Cards: Visa, Mastercard, and AMEX cards with NFC technology are widely accepted.
Potential Limitations for International Visitors
- Some Android smartphones from overseas may not support Japan’s FeliCa-based NFC payments, meaning they cannot use mobile Suica or other transit cards.
- If your device only supports standard NFC (ISO/IEC 14443) but not FeliCa, you will need to rely on physical IC cards instead of mobile payments.
Check your device specifications before traveling to Japan to ensure compatibility.
6. Suggestions from the Research
Bring credit cards that are widely accepted in Japan, such as VISA or MasterCard. While American Express and Diners Club cards are also usable, they are not accepted everywhere.
That said, it’s wise to carry at least five 1,000-yen bills. Buses, subways, and trains, especially for short-distance travel, often require cash for small fare adjustments. On buses, in particular, change for larger bills (10,000 or 5,000 yen) is often unavailable.
Upon arriving in Japan, purchase an IC card, which works on most public transportation systems. Topping up the card allows you to tap at gates for JR, subways, buses, and more. However, keep an eye on your balance, since cash is needed to top it up if the balance runs low.
Research Conditions
- This research is not specific to any smartphone model or traveler demographic.
- The information is based on publicly available internet sources as of December 2024, but conditions may change—check the provided links for updates.
- If credit card types are unclear, we assumed they were not accepted.
- When only Japanese-issued credit cards were explicitly accepted, we treated them as unavailable for international travelers. Please note that credit card acceptance may differ between online and in-person purchases in Japan. Since cash is often required for direct purchases, it’s best to book or purchase online in advance whenever possible.
IC Cards
IC Cards for Public Transport and Everyday Convenience
IC cards are available for international travelers visiting Japan. Simply tap the card on a ticket gate to pass through, and the fare will be automatically deducted. These cards can be used not only on public transportation but also at most convenience stores and even vending machines, making them incredibly convenient. For JR trains, subways, buses, and more, simply touch the card to the gate to travel. Your remaining balance briefly appears on the gate display after you tap.
IC cards are issued by various companies, including JR. Each company has its own card with different names, such as Kitaca, PASMO, Suica, manaca, TOICA, PiTaPa, and ICOCA. These companies have partnerships that allow the cards to be used within each other’s operating areas. However, these cards cannot be used for travel across different companies’ service areas, so be mindful of each company’s operating zones.
These cards can be purchased from multi-function vending machines or staffed ticket counters at stations. Each card requires a 500-yen deposit.
If your card balance is insufficient, you’ll need to pay the difference in cash. If you don’t have enough cash on hand, you’ll need to ask station staff for assistance or find a way to get more. This can be time-consuming, so it’s best to monitor your balance regularly.
IC Card for Travelers Staying Up to 28 Days
If you arrive first at Narita Airport, Haneda Airport, or within Tokyo, consider the Welcome Suica, an IC card offered by JR East that doesn’t require a deposit. The card is valid for 28 days from the date of purchase. Learn more here.
The Welcome Suica can be purchased at JR EAST Travel Service Centers located at Narita Airport, Haneda Airport, JR Tokyo Station, JR Shinagawa Station, JR Shibuya Station, JR Shinjuku Station, JR Ikebukuro Station, and JR Ueno Station.
Types of Credit Cards Accepted
Convenience Stores
In Japan, convenience stores are ubiquitous and incredibly well-stocked—so much so that you might not even need to visit a restaurant during your stay.
There are seven major convenience store chains in Japan, and all of them accept Visa, Mastercard, JCB, American Express, Diners Club, and Discover.
Railways
For short-distance travel on JR, private railways, and subways, ticket vending machines typically do not accept credit cards.
For long-distance travel on JR, major stations offer multi-function vending machines that accept credit cards, including Visa, Mastercard, JCB, American Express, Diners Club, and Discover. You can also use credit cards at staffed ticket counters.
Subways across Japan are increasingly installing automatic gates that support contactless credit cards. These gates accept Visa, Mastercard, JCB, American Express, Diners Club, and Discover.
Some private railways are also adopting contactless credit card gates, but ticket vending machines remain widely used. Particularly in rural areas, it’s advisable to carry cash just in case.
Buses
For long-distance buses, tickets can be purchased at counters or online, and credit cards are usually accepted.
For local buses used for short-distance travel, payment is limited to IC cards or cash. In rural areas, IC cards may not be usable, so carrying cash is recommended. Additionally, large bills (10,000 yen or 5,000 yen) are often not accepted, so having 1,000 yen notes on hand is advisable.
Taxis
There are many taxi companies in Japan, but in rural areas, it’s more common for cash to be the only accepted payment method.
Many taxis, however, do accept credit cards. You can easily confirm this by checking for stickers on the door indicating the accepted card types.
Taxi fares in Japan can be quite expensive over long distances. If you’re unsure whether your card will be accepted or have concerns about using an international card, it’s a good idea to show it to the driver before starting your trip.
Air Travel
There are 15 major airlines offering long-distance flights within Japan, all of which accept Visa and MasterCard. However, some may not accept other credit cards, so please check the list below for details. [Research List]
In addition, helicopter sightseeing tours are available in various regions. For example, you can find options like those listed below. These tours can be easily found online and booked through their websites using a credit card.
Car Rentals
After researching 28 major car rental companies, we found notable differences in the types of credit cards they accept. Some companies only accept cash, so it’s important to check this when making your reservation.
When using rental cars, you may need to use highways. While most accept credit cards, some routes do not. Given the large number of highways, we couldn’t investigate all of them, but you can easily check specific routes online. [Research List]
Ferries
In our research on 43 major ferry companies, we found significant variation in the types of credit cards they accept. Many companies accept only cash, so it’s advisable to check each company’s website for specific details. [Research List]
Note: IC cards are accepted on the JR West Miyajima Ferry.
Research List
Air Travel
| NAME | AREA | VISA | MASTER CARD | AMERICAN EXPRESS | DINERS CLUB | DISCOVER |
|---|---|---|---|---|---|---|
| Peach Aviation Limited | v | v | v | v | v | |
| AIRDO Co., Ltd. | Hokkaido | v | v | v | v | |
| All Nippon Airways Co., Ltd. | v | v | v | v | ||
| Amakusa Airlines Co., Ltd. | Amakusa | v | v | v | v | |
| Fuji Dream Airlines Co., Ltd. | Chube | v | v | v | v | |
| Ibex Airlines Co., Ltd. | Tohoku,Kanto | v | v | v | v | |
| New Central Airservice Co., Ltd. | Remote Island | v | v | v | v | |
| Oriental Air Bridge Co., Ltd. | Nagasaki | v | v | v | v | |
| Skymark Airlines Inc. | v | v | v | v | ||
| Solaseed Air Inc. | Kyusyu, Okinawa | v | v | v | v | |
| Star Flyer Inc. | Kyusyu, Kanto | v | v | v | v | |
| Jetstar Japan Co., Ltd. | v | v | v | |||
| Spring Airlines Japan Co., Ltd. | v | v | v | |||
| Japan Airlines Co., Ltd. | v | v | ||||
| Toki Air Co., Ltd. | Niigata | v | v |
Car Rentals
| NAME | AREA | VISA | MASTER CARD | AMERICAN EXPRESS | DINERS CLUB | DISCOVER |
|---|---|---|---|---|---|---|
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
| Awashima Ferry | Niigata | v | v | v | v | v |
Ferries
| NAME | AREA | VISA | MASTER CARD | AMERICAN EXPRESS | DINERS CLUB | DISCOVER |
|---|---|---|---|---|---|---|
| Awashima Ferry | Niigata | v | v | v | v | v |
| International Ryobi Ferry | Shikoku - Okayama | v | v | v | v | v |
| Kokudo Kyushi Ferry | Ehime - Ohita | v | v | v | v | v |
| Kumamoto Ferry | Kumamoto - Shimabara | v | v | v | v | v |
| Orange Ferry | Shikoku - Kansai, Ehime - Ohita | v | v | v | v | v |
| Suonada Ferry | Yamaguchi - Ohita | v | v | v | v | v |
| Uwajima Unyu Ferries | Shikoku - Kyushu, Ehime - Ohita | v | v | v | v | v |
| Heartland Ferry | Hokkaido | v | v | v | v | |
| Nankai Ferry | Wakayama - Tokushima | v | v | v | v | |
| Ocean Tokyu Ferry | Kansai - Shikoku | v | v | v | v | |
| Sado Kisen | Niigata | v | v | v | v | |
| Seikan Ferry | Aomori - Hokkaido | v | v | v | v | |
| Setonaikai Cruises Co., Ltd. | Seto Inland Sea | v | v | v | v | |
| Silver Ferry | Aomori - Hokkaido | v | v | v | v | |
| Sun Flower | Kanto - Hokkaido, Kansai - Kyushu, Kanto - Kyushu | v | v | v | v | |
| Tsugaru Kaikyo Ferry | Aomori - Hokkaido | v | v | v | v | |
| Shin Nihonkai Ferry | Hokuriku - Hokkaido | v | v | v | ||
| Shodoshima Ferry | Shikoku - Okayama | v | v | v | ||
| Taiheiyo Ferry | Chubu - Hokkaido | v | v | v | ||
| Tokyo Wan Ferry | Tokyo Bay | v | v | |||
| JR West Miyajima Ferry | Miyajima | |||||
| Haboro Enkai Ferry | Hokkaido | |||||
| Mutsu Bay Ferry | Aomori | |||||
| Oshima Kisen | Miyagi | |||||
| Ajishima Line | Miyagi | |||||
| Shinshin Ferry | Izu | |||||
| Dream Ferry | Suruga Bay | |||||
| Isewan Ferry | Ise Bay | |||||
| Jumbo Ferry | Kobe - Takamatsu | |||||
| Shodoshima Teshima Ferry | Shikoku - Okayama | |||||
| Shikoku Kisen | Kagawa | |||||
| Miyajima Matsudai Steamship | Miyajima | |||||
| Oki Kisen | Shimane | |||||
| Ariake Ferry | Kyushu |
