Ella 
Traveling to Japan is an exciting experience, full of cultural richness, technological marvels, and natural beauty. However, navigating financial matters—like currency, exchange rates, and payment methods—can be challenging, especially for first-time visitors. Japan is known for being both modern and traditional when it comes to money. While credit card use is increasing, Japan still relies heavily on cash, especially in rural areas and small businesses. This article provides essential tips on handling money in Japan and explores various currency exchange options to help you manage your finances with confidence during your trip.
Understanding Japanese Currency
The Japanese Yen (JPY)
The official currency of Japan is the Japanese Yen, abbreviated as JPY and symbolized as ¥. Coins come in denominations of ¥1, ¥5, ¥10, ¥50, ¥100, and ¥500, while banknotes include ¥1,000, ¥2,000 (rare), ¥5,000, and ¥10,000.
Yen banknotes feature distinguished historical figures and are widely accepted throughout the country. While many countries are moving toward cashless transactions, cash remains king in Japan, especially for everyday purchases and in traditional areas.
Tips for Handling Money in Japan
1. Carry Cash
Despite Japan’s advanced technology, cash is still the preferred method of payment in many settings. Street vendors, family-run inns (ryokan), small restaurants, shrines, and rural shops may not accept cards. It’s wise to carry enough cash to cover daily expenses, including meals, transportation, and entrance fees.
Pro Tip: Many convenience stores and train station lockers only accept coins or small denomination notes.
2. Use a Coin Purse
Japanese currency involves a lot of coins. A coin purse can help you keep your change organized and accessible, especially since coins are used frequently for vending machines, bus fares, and small transactions.
3. Don’t Rely Solely on Credit Cards
While credit cards like Visa, MasterCard, and American Express are gaining wider acceptance in cities, they may not be accepted everywhere. Places that cater to tourists, such as hotels and department stores, usually take cards. However, traditional markets and rural areas may be cash-only.
Note: Japan’s card terminals often require chip and PIN. Swipe-only cards might not work.
4. Know Your Daily Budget
Japan can be expensive depending on your travel style. Budgeting for transportation, food, shopping, and sightseeing is essential. A typical daily expense (excluding accommodation) may range from ¥5,000 to ¥15,000.
5. Keep Small Denominations
Many places in Japan won’t accept large bills for small purchases. Always try to break down larger notes into smaller denominations at convenience stores, train stations, or banks.
Where to Exchange Currency
Exchanging money before or during your trip is important for ensuring you have sufficient yen. Here are the most common ways to exchange currency for your trip to Japan.
1. Exchange at Home
You can order yen from your local bank or currency exchange service before traveling. This is often the most convenient method and allows you to arrive in Japan with local currency in hand.
Pros:
Convenient and safe
No need to look for exchange services immediately upon arrival
Cons:
Exchange rates might not be the most favorable
Advance notice may be required
2. Currency Exchange at Airports
Major Japanese airports like Narita, Haneda, Kansai, and Chubu have currency exchange counters and machines. These are ideal for travelers who need cash immediately upon arrival.
Pros:
Easy and convenient
Multilingual support
Cons:
Exchange rates may include higher margins and service fees
3. ATMs in Japan
Using international ATMs is one of the easiest and most cost-effective ways to obtain yen. Not all ATMs accept foreign cards, but several do, including:
7-Eleven ATMs
Japan Post Bank ATMs
Lawson and FamilyMart ATMs
Aeon Bank ATMs
These machines typically offer English instructions and are available 24/7 in many locations.
Tip: Check with your home bank about international ATM fees and withdrawal limits before traveling.
4. Currency Exchange Bureaus
Cities like Tokyo, Osaka, and Kyoto have dedicated money exchange shops, often offering better rates than banks and airports. Well-known bureaus include Travelex, Sakura Exchange, and World Currency Shop.
Pros:
Competitive rates
Widely available in tourist areas
Cons:
Not always open late or on weekends
May require passport for transactions
Using Credit and Debit Cards in Japan
While cash is essential, credit and debit cards can be useful in many situations, especially for larger transactions.
Tips for Using Cards:
Enable international use before leaving your home country.
Inform your bank of your travel dates to avoid card blocks.
Use cards primarily in hotels, department stores, chain restaurants, and transportation hubs.
Expect dynamic currency conversion (DCC) at some terminals; always choose to be charged in yen for better rates.
Prepaid Travel Cards
An increasingly popular option is using prepaid travel cards or multi-currency debit cards, such as Wise, Revolut, or Travelex Money Card.
Benefits include:
Favorable exchange rates
Easy top-ups via mobile app
Widely accepted where cards are used
Drawbacks:
Limited cash withdrawal options
Not accepted everywhere in Japan
Mobile Payments in Japan
Japan is gradually adopting mobile payment systems, though it’s still behind countries like China or South Korea in this regard. Popular mobile wallets include:
PayPay
Line Pay
Rakuten Pay
Apple Pay (linked to a Japan-issued card)
Foreign travelers may have difficulty using mobile payment systems unless they have a Japanese bank account or SIM card.
Money Etiquette in Japan
Japanese culture emphasizes respect and politeness, even when handling money.
Dos:
Use both hands when giving or receiving money or cards.
Place cash on the small tray provided at the counter instead of handing it directly to the cashier.
Accept change carefully and say “Arigatou gozaimasu” (Thank you very much).
Don’ts:
Don’t crumple or throw yen notes.
Don’t count money in front of others disrespectfully.
Avoid excessive tipping—tipping is not customary in Japan and may even cause confusion.
Conclusion: Planning Ahead Is Key
Managing money wisely in Japan can greatly enhance your travel experience. While Japan remains a largely cash-based society, especially outside major cities, you can take advantage of modern conveniences like international ATMs, prepaid travel cards, and credit cards in many areas.
Plan ahead by carrying enough yen, keeping small denominations, and understanding your best currency exchange options. Whether you’re exploring the temples of Kyoto, shopping in Tokyo, or enjoying local cuisine in Osaka, a little financial preparedness goes a long way toward a smooth and enjoyable journey in Japan.
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