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The Cash Conundrum: Why Japan Loves Paper Money

By Bella Booysen

September 18, 2024

The Cash Conundrum: Why Japan Loves Paper Money

Despite being a global leader in technology, Japan is still a bit old-school when it comes to money. Imagine a place where even the fanciest gadgets and sleekest robots don't quite overshadow the simple appeal of cash. That's Japan for you! Around 60% of all transactions in the country are still made with good ol' paper money and coins. Why, you ask? Well, cash is seen as super reliable—no worries about data breaches or tech glitches here.

  • Japan, despite being a tech-savvy nation, still holds on to its traditional cash-based transactions, with around 60% of purchases made using paper money and coins. 
  • Travelers should be aware of Japan's unique cash etiquette.
  • While many places in cities like Tokyo accept cards, small businesses, local eateries, and cultural sites often only take cash. 
  • Keeping smaller bills and coins handy is essential, especially for vending machines or making offerings at shrines. 
  • Though contactless payments are becoming more common, they're still not widespread, making cash an important part of everyday life in Japan.

Cash Etiquette: Mastering the Art of Paying Up

People at a landmark in Tokyo

Before you go stuffing your wallet with yen, there are a few quirky customs you should know. First off, tipping is a big no-no in Japan. Yep, you heard that right! While tipping might be a thing where you're from, in Japan, it can be seen as a bit...awkward. If you really feel the need to leave a tip, maybe after a stellar experience, be discreet—pop it in an envelope and hand it over with both hands like you're giving a gift. It's all about respect here.

When it's time to pay for your ramen or that cute souvenir, don't just hand your cash over. Instead, place your money on the little tray by the register. The cashier will return your change the same way. It might feel a bit formal, but hey, it's part of the fun of immersing yourself in Japanese culture.

And a pro tip: Keep a stash of smaller bills and coins handy. Japan loves its vending machines (seriously, they're everywhere!), but they don't always take large bills. Plus, having smaller denominations means you can make a quick purchase without causing a queue behind you. 

Learn more about etiquette and manners in Japan here!

When Cash is a Must: Where You'll Need Yen

People at a restaurant in Tokyo

Even in a city as modern as Tokyo, there are times when cash is your best friend. For instance, many of Japan's historic landmarks, like those serene temples and majestic shrines, are cash-only zones. You wouldn't want to miss out on these cultural gems just because you didn't bring enough yen, would you?

And here's a fun fact: If you visit a Shinto shrine, it's customary to toss a 5-yen coin into the offering box. Why 5 yen? Well, in Japanese, "5 yen" sounds a lot like the word for "good fortune," so it's kind of like making a wish. Trust me, you'll want that coin ready for the moment!

Card-Friendly Tokyo: When Plastic Rules

People eating outside

Now, if you're sticking to the bustling streets of Tokyo, your credit or debit card will come in handy at most places. It's super convenient, especially if you're staying for just a few days and don't want to deal with leftover yen at the end of your trip. From trendy boutiques in Shibuya to swanky restaurants in Ginza, you can swipe your card without a hitch.

But here's the catch—Tokyo is full of surprises, and not every little ramen shop or quirky bar accepts cards. So, it's always wise to carry a bit of cash just in case. You never know when you might stumble upon a hidden gem that only takes yen!

Going Contactless: A Touch of Modern Japan

People holding hands and praying

Japan might be a bit behind the curve when it comes to contactless payments, but they're catching up. You'll spot the contactless symbol at some stores in Tokyo, so if you're used to tapping your card or phone to pay, you might be in luck. However, it's not everywhere yet, so don't rely on it entirely. If you're tech-savvy and prefer to go digital, a Wise card could be your best bet, offering contactless transactions without the foreign transaction fees.

All of this information is great to have, but if you're looking for an immersive experience, our Kickstart Tokyo experience is the best way to learn on the go. And the best part? You'll have a local by your side showing you the way. It's the best way to understand the cash systems of Japan!

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