Japanese Yen Needed? Overview of Japan’s Use of Cash and Electronic Payments
While Japan boasts a highly modern infrastructure, cash remains king in many parts of the country, especially outside urban areas. Although major cities like Tokyo and Osaka are increasingly adopting electronic payments such as credit cards, mobile apps, and IC cards, cash is still the preferred method for many small businesses, local restaurants, and rural shops.
Even in the countryside, big chain stores generally accept credit cards, but smaller establishments—including family-run shops, street vendors, and traditional inns—often deal exclusively in cash. Carrying some yen with you is essential, especially if you plan to explore off-the-beaten-path locations or dine at local eateries. Since our tours focus on discovering the countryside and immersing in local culture, having cash on hand is crucial to fully enjoy the experience.
Is It Better to Exchange Money in Japan?
Finding the most favorable rates for exchanging your money depends on the currency you hold. For example, if you are traveling from the U.S., it is advisable to wait to exchange your dollars for yen until you have arrived in Japan. However, you might get better rates for yen in Southeast Asian countries rather than in Japan.
How to Withdraw Cash Easily
Japan’s convenience stores offer a simple and accessible way to withdraw cash during your travels. Major convenience store chains, such as 7-Eleven, Lawson, and Family Mart, all have ATMs that accept international cards. You can find more information and locate ATMs on their respective websites:
While stopping by a convenience store ATM is a convenient option, it may not always be the cheapest, especially if your card provider or the ATM operator charges additional fees.
Note:
- Not every convenience store has ATMs that handle international currency withdrawals.
- For cards issued overseas, the limit for each withdrawal is about 50,000 – 100,000 yen.
- Currency is withdrawn in multiples of 10,000 yen at some ATMs.
- Service and usage charges vary according to the card and bank(s) used.
- There may be additional fees charged by your card issuer.
- ATMs may not be available due to system maintenance, etc.
Tips for Minimizing Fees in Japan
Choose Local Currency: ATMs may offer you the option to be charged in your home currency (e.g., USD), which might seem convenient, but it’s always best to choose to be charged in the local currency (JPY). Being charged in yen helps you avoid hidden fees, ensuring you get the best possible exchange rate. If you choose to be charged in your home currency, the ATM may apply an unfavorable exchange rate, resulting in extra costs.
Use an International Travel Card: Consider using a travel card specifically designed for international use, such as the Wise card. With the Wise card, you can withdraw up to 200 EUR a month (max. 2 withdrawals) from overseas ATMs without fees. Just ensure the ATM operator itself doesn’t charge extra fees. When withdrawing, always opt for the local currency (JPY) to benefit from mid-market exchange rates and avoid costly mark-ups.