Summary

The Japanese currency is called the “Yen” (En, Yen) and its international currency code is “JPY”. The Japanese yen consists of both banknotes and coins.

Banknotes

There are four types of banknotes.

• 1,000-yen bill - the smallest denomination, often used in everyday transactions.
• 2,000 yen bill - relatively rare and not often seen in everyday transactions.
• 5,000-yen bill - medium denomination bill, used primarily for medium-sized payments.
• 10,000-yen bill - the largest denomination bill, used for high value transactions and to save money.

Coins

There are six types of coins

• 1 yen coins - the smallest coin, made of aluminum.
• 5 yen coins - These coins have a hole in them and are made of brass. It is considered good luck.
• 10 yen coins - This coin is made of copper and is used for small daily transactions.
• 50 yen coins - This coin also has a hole in it and is made of white copper.
• 100 yen coins - This coin is made of nickel and is one of the most commonly used coins.
• 500 yen coins - the most expensive coin, made of two different metals (white copper and nickel brass).

How to use

Cash transactions are still very common in Japan. However, credit cards and electronic money (Suica, Pasmo, PayPay, etc.) are becoming increasingly popular these days. It is useful for foreign visitors to have Japanese yen ready and to check where credit and debit cards are accepted.

Reasons why cash transactions are common in Japan

1. cultural factors
Cash transactions have been the norm in Japan throughout its long history. There is a strong sense of trust and security associated with it, and there is little resistance to using cash. Because cash is visible and can actually be held in one's hand, there is a sense of security.
2. security and trust
Japan is a relatively safe country, and there is little concern about carrying cash around. In addition, Japanese banknotes and coins have very high anti-counterfeiting technology, and there is little counterfeit currency in circulation, so there is a high level of trust in cash.
3. Infrastructure
With the large number of ATMs in Japan, many of which are available 24 hours a day, cash withdrawals are very convenient. In addition, cash is widely accepted in retail stores, restaurants, and transportation systems, making cash payments a smooth process.
4. Support for Small Shops
Smaller stores and privately owned stores often use cash-only transactions due to the high cost of installing credit cards and electronic money. Especially in rural areas, cash-only transactions are common.
5. influence of the elderly
One factor is that the elderly are accustomed to cash transactions and are highly resistant to digital payments. They feel that using cash is the norm, which is one of the reasons for the slow diffusion of digital payments.
6. disaster preparedness
Japan is a country prone to natural disasters such as earthquakes and typhoons. If power outages or communication failures occur during a disaster, electronic payments may not be available. This is one reason why having cash on hand provides peace of mind and makes it easier to respond to emergencies.
7. Signs of Change
In recent years, however, cashless payments have become increasingly popular. The use of QR code payments and electronic money has been increasing due to the government's policy of promoting cashless transactions and the widespread use of smartphones. Especially in urban areas, the use of credit cards and electronic money is spreading, making it easier for foreign tourists to use them.

important point

For cash transactions

1. Amount of cash to carry
Although Japan is a relatively safe country, it is best to avoid carrying large amounts of cash. Especially in tourist areas, pickpocketing and other crimes can occur, so carry the minimum amount of cash you need.
2. Prepare small change
Since small change is often used in Japan, it is helpful to have an appropriate supply of 1 yen, 5 yen, 10 yen, 50 yen, 100 yen, and 500 yen coins. Change is especially needed at vending machines, coin lockers, and small stores.
3. Using ATMs
Since ATMs that accept international credit and debit cards are limited, it is recommended that you use ATMs at major banks and post offices. ATMs at convenience stores are also convenient.

For cashless payment

1. Confirmation of stores that accept
Check in advance which stores accept credit cards and electronic money (Suica, Pasmo, PayPay, etc.). Many stores, especially in rural areas or small stores, are cash-only.
2. Internet Connection
Some cashless payment applications require an Internet connection. International visitors may find it useful to have mobile Wi-Fi or a SIM card available.
3. Check for fees
Fees may apply when using overseas credit or debit cards. Check with your card issuer in advance to find out what fees they charge.
4. In case of emergency
It is recommended that you carry a certain amount of cash with you in case you are unable to use cashless payment methods. Cashless payments may not be available in the event of a disaster or system failure.

Other points to note

1. Timing of Currency Exchange
Currency exchange at airports and hotels often offers poor rates. You can often get a better rate by exchanging money at a city currency exchange or bank.
2. Security measures
When handling cash or cards, be careful not to be visible to others, and be aware of your surroundings when withdrawing money from an ATM.
3. Identification and Usage
Knowing the types of Japanese banknotes and coins in advance and familiarizing yourself with their use will help smooth transactions.

Paying attention to these points will make your payments in Japan go more smoothly.

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