Money and payments in Japan

The yen comes in four banknotes and six coins; the note designs were renewed in July 2024 with portraits of the industrialist Shibusawa Eiichi, the educator Tsuda Umeko and the bacteriologist Kitasato Shibasaburō, while older notes remain legal tender. Coins are used heavily for small amounts, and a coin purse is useful.

Cash is still expected at many small family-run restaurants and izakaya, at temple and shrine offices, at food stalls and markets, in rural buses and shops, and for some ticket machines. In shops, money is placed on a small tray at the till rather than handed over directly.

Visa and Mastercard are accepted in most hotels, department stores, chain restaurants, supermarkets, convenience stores and for train tickets; JCB, Japan's own card network, and American Express are also common. Contactless payment by card or smartphone wallet has spread rapidly. A growing number of railways and buses also accept contactless credit cards directly at the gate.

When paying by card, terminals sometimes offer to charge in the card's home currency; choosing yen normally avoids an unfavourable exchange rate. Some small shops set a minimum amount for card payments.

Transport IC cards such as Suica and ICOCA double as an electronic purse in convenience stores, vending machines, station shops, coin lockers and many chain outlets. QR-code payment apps such as PayPay are very widespread among residents, but most require a Japanese bank account or phone number. Some shops accept international QR wallets such as Alipay+ and WeChat Pay.

Not all Japanese ATMs accept foreign cards. Those that reliably do are the Seven Bank ATMs in 7-Eleven stores, Japan Post Bank ATMs in post offices, and the ATMs in many other convenience store chains and at airports, with menus in English. Fees depend on the ATM operator and the card issuer.

Currency can be exchanged at airports, banks and exchange counters in the cities; rates for yen are usually better in Japan than in Europe. Travellers carrying cash or equivalent instruments above a set value must declare it on entry or departure.

Consumption tax is levied at 10 per cent, with a reduced 8 per cent on food and non-alcoholic drinks for takeaway. Shops must display tax-inclusive prices, though the pre-tax amount is sometimes shown more prominently. Visitors can buy goods free of consumption tax at registered shops; from 1 November 2026 this system changes to a refund model, in which tax is paid in the shop and refunded after export is confirmed at departure.

Tipping is not part of Japanese culture. Service is included, and leaving money on the table usually leads to staff running after the guest to return it. Some upscale restaurants and hotels add a service charge to the bill.