Why You Need to Use Cash in Japan as a Tourist
It is quite ironic that in a country usually associated with high technology, the culture of cash has not been completely eroded.
Cash is still king in Japan, with 80% of consumer transactions made in cash. This is because people in Japan have embraced cash usage, and the country's low crime rate makes it safe to carry cash.
Do You Need Cash in Japan?
Japan is one of the most developed countries in the world, but surprisingly, cash is most commonly still used as a form of payment in Japan. Although credit cards and digital payment systems are becoming more common, especially in big cities, cash remains essential in Japan.

When and Where to Use Cash in Japan
There are still cases where you can only use cash even in cities:
- Markets & Food Stalls: Traditional markets, local food vendors, and festivals typically operate on a cash-only basis.
- Small Restaurants & Cafés: The majority of small businesses are family-owned and thus prefer cash transactions.
- Public Transport: In major cities, transit systems accept prepaid IC cards, while rural buses and train lines often require cash payments.
- Public Toilets: Some public restrooms, particularly in rural areas or at tourist sites, may charge a small fee, payable only in cash.
Carrying Cash Safely
While Japan is known for its low crime rate, it’s still wise to keep your cash secure. Use a secure wallet or money belt to keep your cash safe and organized. Since Japanese yen includes both bills and coins, having a coin purse can be very handy for everyday transactions.
Yen Denominations:
Banknotes: ¥1,000, ¥2,000, ¥5,000, and ¥10,000
Coins: ¥1, ¥5, ¥10, ¥50, ¥100, and ¥500
Small denominations are especially useful for vending machines, transportation, and making small purchases.
Cash Etiquette in Japan
In Japan, people are very particular about cash and how it is handled. These customs reflect proper manners and should be followed by everyone:
Using Trays: It is better to place your cash on the tray provided at the register rather than handing it directly to the cashier.
Keeping Bills Neat: Avoid folding or crumpling bills. Many locals use wallets designed to keep bills straight.
Currencies Accepted in Japan
Japanese Yen Only: Foreign currencies like US dollars or euros are rarely accepted, even in tourist-heavy areas. Be prepared to pay for accommodations, shopping, and other expenses in yen.
By understanding these key points, you can navigate Japan's cash-based economy with ease and enjoy your vacation.