When I go to Japan, I always exchange 100% of my money. I tend to use cash more than cards. There's a perception that Japan is a cash-based society, and when you actually go, you often find stores that don't accept cards. It also gives me peace of mind without worrying about card loss or fraud.
But every time I go to Japan, there's one thing that confuses me: the dilemma of "how much cash should I carry today?" when leaving my accommodation in the morning. Carrying too much is a burden, and carrying too little means getting flustered when you enter a ramen shop for lunch and are told, "Cash only."
It's really strange how it varies by store, and sometimes even by time of day at the same store. Like, cash only for lunch, but cards OK for dinner. I looked into why this is, and it turns out there are unique Japanese circumstances. So, I've put together this summary. I hope it helps you when you're preparing cash at your accommodation for your next trip to Japan.
"Japan = Cash Society" is Only Half True
In the past, it was truly cash-centric. It was hard to find stores that accepted cards. But things have changed a bit recently. In cities like Tokyo, Osaka, and Kyoto, it's rare to find a store without a PayPay sticker. QR payments like Rakuten Pay, d Pay, and Merpay are also common.
Convenience stores, drugstores, and chain stores generally accept cards well. Chain restaurants like Sushiro, Matsuya, and Yoshinoya accept cards and QR payments regardless of the time of day.
So, the common belief that "Japan is always cash-only" is an old story. However, there are exceptions: lunch specials and small local restaurants. Always carry both cards and cash just in case to avoid problems.
Why is it cash-only for lunch?
This is the core. There's a real reason why the policy differs by time of day at the same store. In Japan, credit card merchant fees are much higher than in Korea. While Korea's are usually around 1-2%, Japan's are typically 3-5%. This is a significant burden for businesses.
This is combined with the characteristics of Japanese lunch specials. Lunch menus are usually priced cheaply, between 800-1,200 yen. They operate on a low-margin, high-volume strategy to attract many customers. If a 1,000-yen set meal has a 30-50 yen card fee deducted, it's a really significant portion for the restaurant.
So, for lunch, it's "cash only," but in the evening, when the average customer spend goes up to 3,000-5,000 yen, cards are OK. It's the same store, same owner, but they change the policy based on the time of day. This can be considered a peculiar aspect of the Japanese dining industry.
How can I know before I go?
Fortunately, there are clues you can look for on the store's exterior or menu beforehand.
Stores with a ticket vending machine are almost 100% cash-only. If you see a ticket vending machine at the entrance, you'll immediately know, "Ah, this place is cash-only." Most vending machines don't have card slots. Occasionally, newer machines might accept cards or QR, but it's rare.
If there are PayPay or Rakuten Pay stickers on the menu or at the entrance, QR payment is OK. Japanese sticker designs are clean and easy to spot. If you see these, they often accept cards as well.
Ramen shops, set meal restaurants, soba shops, and udon shops have a high percentage of being cash-only for lunch. This is especially true for small local restaurants tucked away in alleys. Main street tourist areas might be different, but the atmosphere changes just one block in.
Chain restaurants are OK regardless of the time of day. Places like Sushiro, Kura Sushi, Matsuya, Yoshinoya, Katsuya, and Saizeriya accept cards and QR payments for both lunch and dinner.
Finally, Google Maps reviews are also a good clue. If you search for a restaurant in Korean, you'll often find reviews saying, "Cash only." If you've decided on a restaurant beforehand, I recommend searching for it once.
So, how much should I carry when leaving my accommodation?
This is the main point, the question you ponder every morning at your accommodation.
For downtown Tokyo, Osaka, or Kyoto, around 5,000-10,000 yen per day is usually sufficient. Since many places accept cards and QR, cash is mostly used for lunch, small restaurants, vending machines, and shrine entrance fees.
When going to small cities or rural areas, it's better to carry more, around 15,000-20,000 yen. The smaller the town, the fewer ATMs there are, and the higher the percentage of cash-only stores. When I went to Yonago, I carried a bit more cash than when I went to a big city.
If you have meal plans, add that amount. For example, if you budget 1,000 yen for lunch and 3,000 yen for dinner, carry an extra 4,000 yen. Small local cafes and dessert shops might also be cash-only, so keep an extra 1,000 yen for those.
If you run out, you can withdraw money from an Aeon ATM with Travel Wallet. You can withdraw in 1,000 yen increments, so there's no burden. The exchange rate is better than exchange offices, and there are no fees, so many people prefer to exchange a small amount in Korea and withdraw as needed locally.
I usually carry 10,000 yen when traveling in cities and 15,000 yen when going to small cities. If I run out, I withdraw from an ATM. This amount ensures I don't get flustered if I hear "cash only" at lunch.
Conclusion
Japan is not a completely cash-based society. Cards and QR payments are widely accepted in cities. However, lunch specials and small local restaurants are exceptions. This is the part that always confuses Korean travelers. If you see a ticket vending machine in front of a store, it's cash-only; if you see a PayPay sticker, cards are OK. Remembering these two things will help you decide almost every time. And when leaving your accommodation, carrying 5,000-10,000 yen for cities and 15,000 yen for small cities will allow you to travel with peace of mind.
If you run out, you can withdraw from an Aeon ATM as needed, so there's no need to carry too much cash. I hope this article helps those who wonder every morning at their accommodation in Japan, "How much cash should I carry today?"