Let me tell you about the time I learned a hard lesson by relying solely on my credit card in Japan.
Back in Korea, I'm someone who can't live without a card, but I was caught off guard the moment I arrived in Japan. Convenience stores, small eateries, and even street vendors at popular tourist sites! There were far more places that only accepted cash than I ever imagined. I still have vivid memories of my exchanged money running out and having to search high and low for an ATM. That's when it hit me: Japan is still very much a cash-based society!
Why Does Japan Still Cling to Cash?
Japan has long been a society where cash payments are the norm.
I've heard that the adoption of digital devices among the elderly is low, and there's still a resistance to card transaction fees. Of course, the government has recently been promoting cashless payments, but many shops still prefer cash payments. This is especially true for small, independent shops and long-established businesses.
In fact, Japan's cashless payment rate was only about 36% as of 2023. Compared to South Korea's rate of over 90%, it's clear there's still a long way to go.
Pros of Cash Payment
Easily track spending to prevent overspending. Secure, with no risk of personal data leaks.
Pros of Card Payment
Earn points, enjoy convenient payments. Can save on currency exchange fees.
Where Will You Need Cash?
You won't need cash everywhere.
Most large shopping malls, department stores, and chain restaurants accept credit cards. However, be aware that many places like transit card top-up machines, vending machines, small local eateries, traditional markets, and for entrance fees at shrines and temples often only accept cash.
Practical Tips for Travelers
Exchanging money for Japanese Yen before your trip is essential. But carrying too much cash can be risky, right?
Before your trip, consider getting a prepaid travel card like Travel Wallet or TraveLog. You can conveniently top them up with Yen as needed, which also helps save on exchange fees. We also recommend carrying a moderate amount of cash for emergencies. Having around 5,000 to 10,000 yen on hand should give you peace of mind. Lastly, don't forget to jot down the lost/stolen card hotline number on the back of your credit card, just in case!