Money Matters: What Every Traveler Needs to Know About Cash & Currency in Japan

Japan is a country of contrasts—robot cafes and thousand-year-old shrines, futuristic trains and ancient tea ceremonies. But one thing surprises many travelers: in this high-tech paradise, cash is still king.

If you’re planning a trip to Japan, understanding how money works here is key to avoiding awkward situations, budgeting smartly, and enjoying a smooth, stress-free adventure. Here's everything you need to know:

1. The Japanese Yen (¥ / JPY)

The official currency of Japan is the yen. You’ll see it written as ¥100 or 100円 (hyaku-en). The most common bills are:

• ¥1,000 – the most used

• ¥5,000

• ¥10,000 – like the $100 bill of Japan

And coins:

• ¥1, ¥5 (has a hole), ¥10, ¥50 (also has a hole), ¥100, and ¥500

💡 Tip: Carry a small coin purse! You’ll get lots of change and need coins often for vending machines, trains, and even temples.

2. Cash Is Still the Standard

Despite being ultra-modern, Japan is still a cash-based society, especially in rural areas and small businesses. Restaurants, street vendors, temples, taxis, and traditional inns (ryokan) may not accept cards.

✅ Always have cash on hand—especially when visiting places like Kyoto, Mount Fuji, or smaller islands.

3. ATMs Aren’t Everywhere—but These Are Safe Bets

Not all ATMs in Japan accept foreign cards. Luckily, these do:

• 7-Eleven ATMs (found everywhere)

• Japan Post Bank ATMs (located in post offices)

• Lawson convenience stores

• Aeon Bank ATMs

Make sure your debit/credit card has international access and enable it for overseas use before you leave.

🔸 ATMs are safe, English-friendly, and usually open 24/7 in convenience stores.

4. Cards Are Growing—But Don’t Rely on Them

Credit cards are becoming more common, especially in major cities and touristy spots—but you still can’t count on them everywhere.

✅ Visa and Mastercard are most widely accepted.
❌ American Express and Discover may not work in many places.
❌ Some stores have a minimum charge for cards, or accept only cash.

5. Tipping Isn’t a Thing (Seriously)

Don’t tip. Really. Tipping is not customary in Japan, and trying to leave extra cash can cause confusion or even offense.

Instead, show your appreciation with a bow and a sincere “arigatou gozaimasu” (thank you very much). Excellent service is expected—and included in the price.

6. IC Cards: The Digital Wallet of Japan

Cards like Suica, Pasmo, and ICOCA are rechargeable contactless cards you can use for:

• Subways and trains

• Convenience stores

• Vending machines

• Some restaurants and shops

📲 You can even link some to your smartphone or smart watch!

They aren’t a replacement for full cash or credit cards—but they’re a super convenient way to pay for everyday things.

7. How Much Should You Budget?

Here’s a rough daily estimate based on travel style:

• Backpacker/Budget: ¥6,000–¥10,000 ($40–$65 USD)

• Mid-range: ¥12,000–¥20,000 ($80–$130 USD)

• Luxury: ¥25,000+ ($160+ USD)

🍣 Street food can cost ¥300–¥700 per item
🚄 A Shinkansen ride from Tokyo to Kyoto costs about ¥14,000
🛌 Business hotels: ¥5,000–¥9,000/night
🎟️ Temples, museums, and attractions: ¥300–¥1,500 entry

8. Don’t Forget Departure Cash

You’ll likely want to keep about ¥1,000–¥3,000 for airport food, final souvenirs, or transit back to the airport. Exchanging yen back to your home currency after the trip usually gives you a worse rate.

9. Currency Exchange Tips

Exchanging large amounts of money at the airport is convenient—but often comes with worse rates.

✅ Better options:

• Order yen from your bank before your trip

• Use a trusted exchange shop in Japan (like Travelex or Sakura Exchange)

• Withdraw from ATMs once you arrive for a fair rate

Final Tips:

✅ Break large bills at convenience stores—they never mind
✅ Watch out for vending machines and restaurants that are cash only
✅ Keep small bills and coins for temples, lockers, and rural train stations
✅ Always have a backup payment method (card or extra cash) just in case

In Summary:
Japan may be futuristic in many ways, but when it comes to money, it's still a cash-first country. Stay prepared with yen in your pocket, an IC card for quick taps, and the knowledge to avoid common tourist mistakes.

Understanding Japan's money system helped me manage expenses and budget my trip effectively. Great information!

Emily J.

The insights on currency exchange and local transaction methods made my journey much smoother and enjoyable.

Mark T.

★★★★★

★★★★★