Japan is a very popular destination for tourists due to its beautiful scenery, cultural amenities and technological development. However, as with any trip abroad, you need to know how to pay safely in Japan. In this article, we will explain what forms of payment are available for tourists in Japan: from cash, to credit cards, to electronic funds transfer. We will also discuss the advantages and disadvantages of each form of payment and the ways to prevent identity theft. Furthermore, this paper will compare and contrast the payment systems in Japan and other countries, and provide suggestions for tourists who are not familiar with the Japanese currency and payment systems.
Table of Contents
YEN – All About Japan’s Stable Currency
The Japanese currency is the Japanese yen (JPY) in its common form as notes and coins. Coins are in 1, 5, 10, 50, 100 and 500 yen; notes are 1000, 2000, 5000, and 10,000 yen. The yen is a decimal based currency with the centesimal subdivision being the yen.
The yen is one of the most powerful and most stable currencies in the world and it is accepted in many other countries, especially in East and Southeast Asia. However, it is very important to note that the value of the yen can rise or drop on account of socio-economic and political factors hence it is advisable to check the current exchange rate when making any money exchange or when making a large purchase.
When in Japan, it is advisable to have some cash with you especially for small purchases or in case you get to a shop which does not accept credit or debit cards. You can get money from banks, currency exchange offices, or ATMs, or you can use a credit card or a prepaid travel card for the bigger amounts. It is only you to be aware of the exchange rate and other charges that may be included.
Cashless in Japan – Load Your Electronic Cash Cards
Japan is frequently portrayed as a cashless nation; many people and businesses utilize electronic payment tools in the course of their business. In fact, according to the survey conducted by the Bank of Japan, cash was used in 43% of the personal consumption expenditures in 2019, which is much lower than the 63% recorded in 2000. This change in the payment systems has been inspired by the security and efficiency of these systems as well as the availability of payment infrastructure such as the POS terminals and ATMs.
Therefore, it is possible that during your visit to Japan you will be paying for your purchases with electronic means like credit cards, prepaid travel cards or smart cards rather than with cash. Nevertheless, it is still advisable to bring some cash with you since not all companies may accept electronic payments.
Top 8 Tipps for Safe Payment in Japan
- Bring some cash
It is advisable to have some cash with you when travelling in Japan because some shops or even vending machines do not accept credit or debit cards. It is also wise to have some cash with you in case of emergencies. When making the exchange, it is advised to know the current exchange rate and do not exchange money at hotels or airports since they offer uncompetitive rates. You may want to bring a small amount of cash with you when you arrive in Japan and then use ATMs to get more funds as needed. - Use a credit card
Credit cards are widely accepted in Japan, and many establishments include cards from international brands such as Visa, MasterCard, and American Express. However, it is worth noting that some small businesses or vending machines may accept only Japanese credit cards, so it is always good to have some cash with you. When using a credit card it is advisable to keep track of the spending and clear the balance each month to avoid incurring interest charges. - Consider using a prepaid travel card
Prepaid travel cards are a very convenient and secure way of making payments while in Japan. These are the cards which are purchased and loaded with a certain amount of money before they can be used to make purchases and can be used in most of the businesses that accept credit cards. It also reduces the risk of being carried around large amounts of cash. When using a prepaid travel card, it is advisable to check the balance and replenish the card when the balance is low. - Use electronic payment systems
Tourists in Japan prefer using the following electronic payment systems. The most common of these is Suica, a smart card that is purchased and topped up with money to be used on trains, buses and to make purchases from vending machines and shops. Other forms of payment including Pasmo and Icoca which are also acceptable on trains and buses. To use these systems, you have to buy a prepaid card and load money into it. These systems are convenient and easy to use and provide the additional security of not carrying cash. - Be aware of exchange rates
If you are using a credit card or a prepaid travel card, you should know the exchange rate that will be made on your purchase. This can vary depending on the card issuer so it is wise to check with your bank or credit card company before leaving for Japan. You can also use online converters or applications to check the current exchange rate so that you would know more or less how much you are spending in your local currency. - Keep track of your spending
It is very easy to be spendthrift during a vacation so it is worthwhile to keep track of the spendings to avoid overcharging your credit card or running out of cash. It may be useful to set some budget for the trip and keep the track of expenses to stick to the budget. You can use apps or online tools for this or you can just write everything down in a paper or on your phone. - How to Use ATMs Correctly
ATMs are easily found in Japan, but it is important to use them properly. It is better to use ATMs in the well-lit areas and when there is people around. Do not use ATMs that look old or damaged and do not give your card or PIN to anyone. When using ATMs, it is advisable to cover your personal information and it is recommended to use ATMs connected to the bank in order to avoid fraud. - Protect your personal information
When making payments, it is very important to protect your personal information. Do not reveal your credit card details or PIN code to anyone and be careful when entering these details while making a payment or while using a PoS terminal. There are some rules that you should follow when buying something on the Internet: use only secure sites; if you can – use a virtual credit card or a prepaid card; instead of your credit card. It is also wise to put your credit cards and other important documents in a safe place while travelling.
Follow these tips and you will have a smooth and worry free payment while on a trip to Japan. Depending on your preference, there are many ways to pay and they will all be available to you in Japan.
The 3 Biggest Banks in Japan
As for the types of payments available to tourists in Japan, it is also useful to know the major banks of the country. The banking sector in Japan is well developed and organized and there are several big and powerful banks for the provision of financial services to individuals, firms and the government. Some of the most important banks in Japan include:
Mizuho Bank
Mizuho Bank is one of the biggest banks in Japan and has total assets of JPY 106 trillion (about $1 billion). It was established in 2002 through the combination of three big banks and is situated in Tokyo. Mizuho Bank provides banking and financial services such as savings and current accounts, loans, credit cards and investment products.
Bank of Tokyo-Mitsubishi UFJ
Another major bank in Japan is Bank of Tokyo-Mitsubishi UFJ with total assets of JPY 95 trillion (about $900 billion). It was established in 2006 by the merger of Bank of Tokyo-Mitsubishi and UFJ Bank and is located in Tokyo. The bank provides a number of banking services such as savings and current accounts, loans, credit cards and investment products.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation is the third largest bank in Japan with total assets of JPY 75 trillion (about $700 billion). It was created in 2002 by the combination of Sumitomo Bank and Sakura Bank and is located in Tokyo.
Payment Tipps for Tourists in Japan
If you follow the tips and advice that are provided in this article then you can have a smooth and problem free payment experience while travelling in Japan.
Whether you are more comfortable with cash, credit cards or electronic money, there are ways to do it in Japan. It is advisable to find out more about the payment systems and options before you get to Japan. Watch your spending, protect your personal information, and use ATMs wisely to make your trip go as smoothly as possible. With a bit of a planning and a precaution, it is possible to enjoy all the wonders of Japan without a worry about the payment.
Hopefully these payment tipps will enhance your enjoyable visit to Japan with its beautiful nature