In recent years, mobile payments have become widely accepted in major cities and large shopping malls. However, the most commonly used payment methods are still a combination of cash and credit cards, so it’s important to carry some coins and banknotes when traveling in Japan.
1. Japanese Yen
The currency unit in Japan is the yen, which comes in both banknotes and coins. The banknotes in circulation are 1,000, 2,000, 5,000, and 10,000 yen. The coins come in six denominations: 1, 5, 10, 50, 100, and 500 yen.
2. Exchange Rates
It’s important to understand the exchange rate between the yen and your home currency. To get the best value when exchanging money, you should frequently check the real-time currency exchange rates.
3. Currency Exchange
You can exchange yen before you leave your home country to benefit from relatively favorable exchange rates.
Upon arriving in Japan, you can also exchange money at bustling shopping streets, convenience stores, and major department stores, where automatic currency exchange machines are available. These machines allow you to withdraw cash based on real-time exchange rates with a small fee.
In popular tourist cities like Tokyo and Osaka, you can visit currency exchange offices marked with “Foreign Currency Exchange” signs. Sometimes, these exchange offices offer better rates than banks.
4. Payment Methods
Cash Payments: Japan has a well-developed and reliable cash payment system. Many convenient facilities, such as vending machines, subway stations, and temporary storage lockers, only accept cash.
Credit Card Payments: Credit card usage is quite widespread in Japan, but some older or smaller businesses may still not accept them due to processing fees and billing cycles. Many credit cards offer rewards and discounts, making them advantageous for larger purchases. Even for smaller items like ice cream, you can conveniently use your card in major cities and shopping centers.
Mobile Payments: In recent years, mobile payments in Japan have rapidly developed. You can use services like Alipay and WeChat Pay, or choose to use local Japanese mobile payment options. For example, QUICPay, developed by JCB, is a contactless payment service available at over one million terminals across Japan. iPhone users can easily link Apple Pay to a JCB credit card and make payments at stores and vending machines displaying the QUICPay logo. Additionally, PayPay, Japan’s largest mobile payment platform, has about 5 million partner stores, including many small businesses. Using PayPay is not only convenient but often comes with discounts or reward points, making it a great option if available.
IC Cards: Purchase a Japanese contactless transportation IC card, such as Suica or PASMO. These cards are not only useful for transportation but also for shopping, greatly enhancing daily convenience. IC cards are widely accepted throughout Japan, from large department stores and restaurants to convenience stores, vending machines, and claw machines. With an IC card, you won’t have to worry about finding or exchanging change, leading to a smoother shopping experience.
