Why do Japanese like to use cash?

Because the number of pick pockets, break-ins, and overall theft is low, people don't feel uncomfortable walking around with tens or even hundreds of thousands of yen (hundreds or thousands of dollars). Even if a wallet is lost, it is most often returned with all the cash still inside.



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Cash-based country For years, Japan was primarily a cash economy. People preferred physical banknotes over cashless transactions. In fact, back in 2021 cashless payments were just 15.1% of total transactions and only rising slowly. Comparatively, in the UK this statistic was 27% in the same year.

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A Line Pay spokesperson agrees that the pandemic has had an impact. “In general, Japan is still a very cash-based society, relative to other markets, which is why people can still get by with cash with nearly all transactions.

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Most major credit cards are accepted for purchases in larger stores and restaurants. However, be aware that shrines and other locations in rural areas might only take cash.

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Payment Options in Japanese Supermarkets These options usually include cash, credit card, IC cards, point cards, and various “cashless” phone apps (e.g., PayPay, LinePay, etc). However, it is always a good idea to have cash on you in case you end up in a supermarket that does not accept your preferred form of payment.

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Luckily, it's a very safe country (one of our favorite things about Japan), and the biggest risk is probably losing or misplacing your cash. Regardless, of course, be smart and take reasonable precautions if carrying large sums of money.

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Yes, drinking water from taps in Japan is safe. For environmental reasons, try to use a refillable water bottle rather than buying bottled water in Japan. Metro train stations have public water fountains, but otherwise these can be hard to find (this is the land of vending machines after all).

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When travelling in Japan, a person will likely come across many of the following banknotes: 1,000 yen – This roughly equates to an American $10 bill and is the lowest value of any Japanese banknote in circulation. This bill is typically used by office workers to pay for lunch.

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