How To Pay in Japan: Cash and Cashless Payment Options

Traveling to Japan? Thinking about how much money to bring?  

Wondering if cash is the popular payment method or if credit cards are acceptable?

We all know that cash is a very popular payment method in Japan, but did you know that Japan has other payment options for you to use?

Let’s take a look at the different payment systems and learn how to pay in Japan.

How to pay in Japan: cash is still #1

Cash payments in Japan are very common—a total of 76% of Japan's transactions are cash.

Despite a post-COVID world where many people and places offer cashless options, paying in cash is still commonplace in Japan. Cash is accepted everywhere.

Many big businesses and convenience stores have cash payment options. After scanning your items, you can pay by putting your money into the machine, and the machine will give out your exact change.

How to pay in Japan: 4 cashless payment options

A common sign you will see when checking out at a convenience store, restaurant, etc.

Since 2010, cashless payments in Japan have steadily increased to 36.0% of all transactions. 

Even though cashless payment is less common, Japan has offered various cashless payment methods for you to use.

1. Credit and debit cards

Credit cards are the leading cashless payment method in Japan.

Some payments in Japan are contactless where you can pay with cash or card | Nikkei Asia

Major credit card companies such as Visa and MasterCard are widely accepted in Japan, and I’ve never had issues with my foreign credit card while living in Japan. 

When paying with a credit card, you would want to say, “カードでいいですか (Kaado de ii desu ka).” Then you would tap or insert the credit card to make a payment.

2. IC cards

While IC cards in Japan are mainly used for transportation, you can pay with them. IC cards make about 2% of Japan’s overall cashless payment usage, and it's an amazing option for tourists if they don't want to carry cash around.

Similar to riding a train or bus, simply tap your IC card when checking out and the amount will automatically be deducted. When you receive your receipt, it will tell you how much money is left on your card. If you ever need to top up or recharge your IC card, you can do it at the train station, convience store, or the a 7/11 ATM.

Japanese people make a distinction between credit card and IC card payments, which is why most places will have a sign showing if they will accept IC cards or not.

3. Point cards 

Having a point card is super convenient when living in Japan. Every time you make a purchase, you slowly accumulate points and save money.

Once you have enough points, you can use them to make a purchase. Say, “ポイントでお願いします。(Pointo de onegaishimasu),” to pay with your point cards. Just be aware of which point card is accepted at which store.

4. Smartphone payments

Japan offers payment app options that range from mobile and QR code payments, and around 74% of young Japanese people use this method.

Apple Pay and Google Pay

Apple and Google Pay are super convenient payment methods because who isn’t without their phones these days? The Apple Wallet isn’t just for storing credit cards because you can also add your IC and point cards to your Apple Wallet, which means you don’t need to carry everything with you.

Once you have a card in your digital wallet, simply hover your phone over the contactless reader until the payment is done.

The term you want to use for these types of payments is “Quick Pay.”

QR code payment

Scan the QR code to make a payment with PayPay | PayPay 

There are around 60.6 million users who make payments via QR codes in Japan, with PayPay being the most widely used QR code payment service. There are others such as Rakuten Pay and Line Pay that are commonly used, too. 

After signing up and connecting your bank or card information, you will scan the QR code when checking out. Insert the amount you need to pay, and then show the merchant the finished screen.

QR payments are a great option as it eliminates the need for carrying cash and cards around town.

Frequently asked questions

What are the cashless payment methods in Japan?

Paying with credit cards, debit cards, IC cards, and smartphone payments such as Apple Pay and QR codes are cashless payment methods in Japan.

Does Japan still use cash in 2024?

Yes. Japan is still a cash-based society, but there are efforts in major Japanese cities to have cashless payment options such as contactless card readers and smartphone payments.

How do foreigners pay in Japan?

Most foreigners will do a currency exchange for the Japanese yen when they arrive in Japan. However, credit card payments are available in most major Japanese cities. Foreigners can also insert money into an IC card and use that as a payment method.

In closing 

Knowing how to pay in Japan and the different available options opens the opportunities for travelers, residents, and consumers to pay however they want to.

Despite cash being the most popular payment method for people living here, Japan is making an effort to offer contactless payment options for those who want it. Even though travelers can’t utilize the point card system or pay via QR code, you can still take advantage by using your credit or debit card and IC card to make paying in Japan easy.