For years, Japan was primarily a cash economy. People preferred physical banknotes over cashless transactions. In fact, back in 2021 cashless payments were just 15.1% of total transactions and only rising slowly1.
According to its roadmap, the percentage of cashless payments in Japan rose from 13.2% in 2010 to 32.5% in 2021. This is slow compared to other Asian countries: South Korea, China and Singapore all had higher percentages in 2020, at 93.6%, 83%, and 60.4%, respectively.
In 2023, Sweden is proudly becoming the first cashless nation in the world, with an economy that goes 100 percent digital.
Most major credit cards are accepted for purchases in larger stores and restaurants. However, be aware that shrines and other locations in rural areas might only take cash.
While there are ATMs all over Japan, not all of them accept foreign cards which makes it sometimes hard to make withdrawals. Also keep in mind that most banks will charge a foreign transaction fee if you're using your Australian debit card. And you might find there is an ATM access fee.
She explains that in Japan, tipping is similar to giving a child an allowance, or as it's referred to in Japan, an “okozukai.” So giving a working adult something akin to an allowance comes across as condescending.
Assessing the reasons why Japanese consumers prefer cash, Statista notes its security and reliability are highly valued. Over 55 percent of respondents cited concerns over personal information leakage as being a major drawback of cashless options.
Exchange at the Airport
Depending on where you are traveling from, it might be beneficial to exchange money before arriving. For instance, you will get a better exchange rate for yen in Southeast Asian countries than in Japan. But if you are traveling from the United States, definitely wait to exchange your money.
Many experts believe the conclusion of cash will happen as early as 2024. There are many reasons for this shift – here we will discuss just a few of them. One of the biggest factors driving Australia towards a cashless future is the growth of online and mobile payments.
Cashless 'tap' options raising spending concerns
The annual Global Payments Report predicts that in Australia, cash will account for only two per cent of value from all point-of-sale transactions by 2025.
Two small private Chinese banks announced last month that they would no longer provide services involving banknotes or coins, in the latest sign that the country is accelerating its march towards a totally cashless society.
Modern banknotes were first released by the Bank of Japan in 1885, three years after the Japanese government established a centralized bank. Throughout their history, the denominations have ranged from 0.05 yen to 10,000 yen. All of notes worth more than 1 yen, and printed since 1946 are still legal tender.
Japan is a cash society, but credit cards and debit cards are accepted in most places in Japanese cities. Establishments such as local restaurants, markets and rural inns (ryokans) are cash-only. In the places where you can use your card, you may have issues if your card doesn't have your name on the front.
Credit, debit and prepaid cards of international brands are generally accepted throughout the country. There will be instances where stores may not display the symbols of the cards they accept, so ask the salesperson if you can use your card.
Currency. If you are carrying cash or other means of payment exceeding 1 million yen （*0.1 million JPY in a case that you are bound for North Korea）, you are required to declare to Customs. Please ask a Customs officer at a seaport/ airport for a blank form.
There is no limit on the total amount of money and other means of payment that may be brought into or taken out of Japan.
Though use of credit cards and e-currency has increased in recent years, Japan is still largely a cash-based society. The national currency of Japan is the Japanese Yen (¥). It's best to get some cash converted before you leave home so you have change handy to catch the train to your destination once you arrive.
Japanese people's fear of fraud keeps credit card usage from being the main channel of payment when making purchases. Many of them are afraid of credit card scams and are hesitant to use them unless they are required to.
When going up to a restaurants or other stores register counter, there's always a cash tray ("carton" in Japanese) placed for you. But what exactly is this cash tray? This is a place to put your cash to pay without having to directly touch the other person and causing any awkward atmosphere.
Many people choose to supplement their wages with a tip on delivery. While opinions and habits vary, always keep in mind that in Australia, tipping is entirely up to you.
Others are manner rules universal: don't speak with your mouth full, and close your mouth while you are chewing. What's special for Japanese food is perhaps the use of chopsticks. Please avoid holding food with two pairs of chopsticks.