Paying in Japan: The Tap Card, the Coin Tray and the Cash You Still Need

Updated October 15, 2026 | By Tokyo Paul

The first surprise at a Japanese shop counter is the little tray. You do not hand your money across; you set it down on a small dish, and the cashier counts it back with a quiet bow. The second surprise comes at a tiny ramen shop, where a vending machine in the doorway swallows a 1,000 yen note and returns a paper ticket. Japan is famous for technology, yet much of daily life still runs on cash. Knowing which payment tool belongs where saves you time, fees and one or two awkward moments at a register.

The government's own figures show the mix. Japan's trade ministry reported that cashless payments reached 42.8 percent of consumer spending in 2024, passing a 40 percent target, which means a little over half of spending still happened in cash. Of the cashless total, credit cards made up about 83 percent, QR code payments about 10 percent and e-money about 4 percent. This guide covers what to carry, how IC cards work, where cash still wins, and the tax-free shopping rules that change on 1 November 2026.

The Tap Card: Suica, Pasmo and Friends

An IC card (a rechargeable contactless card) is the most useful payment tool a visitor can own. Suica, run by JR East, launched in November 2001, and Pasmo, from Tokyo-area private railways and subways, followed in 2007. Since 2013 the major regional cards, including Suica, Pasmo and Kansai's ICOCA, have worked across each other's networks. You tap at ticket gates, then tap again at convenience stores, vending machines, coin lockers and many casual restaurants. Balances are loaded with cash at station machines or, on mobile versions, with a credit card.

A physical Suica has carried a refundable 500 yen deposit, but supply has been uneven since a chip shortage led JR East to pause sales in 2023; unregistered cards returned in March 2025. For many visitors the easier options are Welcome Suica, a deposit-free card for international visitors that expires 28 days after purchase and is not refundable, or a mobile Suica added to Apple Wallet or a compatible Android phone. Availability and terms can change, so check the JR East website before you land.

Credit Cards and Phone Wallets

Major hotels, department stores, chain restaurants, convenience stores and rail ticket offices accept Visa and Mastercard. Contactless tap payment is increasingly common, and Apple Pay and Google Pay work wherever the terminal supports them. American Express and Diners Club are accepted in fewer places, so carry a Visa or Mastercard as your main card. Credit cards account for the great bulk of Japan's cashless spending, which is why a card is welcome in most mid-sized and large businesses and is the natural choice for hotels, train tickets and shopping.

Before you leave, tell your bank you are traveling, confirm your card works with a PIN or signature, and check the foreign transaction fee, which can add a percent or two to each purchase. When a terminal asks whether to charge you in yen or your home currency, choose yen; the conversion offered by the shop usually has a worse rate. Keep a second card in a different place from the first, so a lost wallet does not leave you with no way to pay at all.

QR Codes and Mobile Apps

QR code payments are real in Japan, accounting for roughly 10 percent of cashless spending in 2024. PayPay is the best-known app, and you will see its red logo and the logos of rival apps at small shops, markets and taxis. For visitors, the difficulty is setup: many local apps want a Japanese phone number or bank account. Some foreign wallets, including ones from China and elsewhere in Asia, are accepted at tourist-focused stores. Treat QR payment as a bonus when it works rather than as your plan for the day.

Rather than download several apps, load a mobile Suica or Pasmo onto your phone and add a credit card to Apple Pay or Google Pay. That covers trains, convenience stores, vending machines and a surprising number of restaurants with a single tap. One practical note: a phone wallet needs a working phone. Carry a spare card and some cash in case your battery dies at a ticket gate, and keep a power bank in your bag on long sightseeing days.

Where Cash Still Wins

Cash remains the default at many small businesses: ramen counters with ticket machines, neighborhood izakaya (casual pubs), old-fashioned coffee shops (kissaten), market stalls, festival food stands and some rural inns. Shrines and temples expect coins as offerings (saisen), and charms and fortune slips (omikuji) are usually bought with small cash. Some small ryokan (traditional inns) and mountain huts also ask for cash. Even in cities, a tiny shop may accept cards only above a minimum amount, so a few notes in your pocket is always sensible.

The coin system rewards a little attention. Japan has six coin denominations: 1, 5, 10, 50, 100 and 500 yen, and the 5 yen and 50 yen coins have holes in the middle. Prices are usually displayed with tax included, and the consumption tax is 10 percent, with a reduced rate of 8 percent on most food bought to take away. Use the coin tray at the register, do not tip, and carry a small coin purse, because change builds up fast. Tipping is not expected in ordinary restaurants and taxis.

Finding Cash: Japanese ATMs

Foreign cards work best at ATMs inside convenience stores, especially 7-Eleven (7-Bank) and Lawson, and at Japan Post Bank machines in post offices. Both usually offer English menus. Machines at many regional banks may reject foreign cards, so do not rely on them. Withdrawal fees often run a couple of hundred yen on top of whatever your home bank charges, and daily limits are set by the ATM and your card issuer. Some machines are not available around the clock, particularly post office ones, so do not leave your cash run to the last evening.

A reasonable rule of thumb is to keep around 10,000 to 20,000 yen (roughly $65 to $135) in notes and coins for a day of mixed travel, refilling as it drops. That is a suggestion, not an official figure, so adjust it for rural trips and small-shop days. Carry plenty of 1,000 yen notes and 100 yen coins, which fit most ticket machines, coin lockers and offering boxes. Larger notes can be awkward for small purchases at early-morning markets or vending machines.

Tax-Free Shopping Changes on 1 November 2026

Until 31 October 2026, tax-free shopping works as it long has: spend at least 5,000 yen before tax at a participating shop in one day, show your passport, and the cashier removes the 10 percent consumption tax at the register. From 1 November 2026, a refund system takes over. You pay the full tax-inclusive price, the shop records the purchase against your passport, and you claim the tax back at the airport before you leave. Some retailers may begin parts of the new process early, so ask at the counter which system they are using.

At the airport, scan your passport at a tax-free terminal in the international departure area before checking your bags, within 90 days of purchase. A green result means you are done; a red one sends you to a customs inspection with your goods. Each receipt is processed separately, so keep the items accessible for inspection. The old sealed-bag rule for food and cosmetics is gone, but anything you use up in Japan is not eligible. Some retailers keep a handling fee, so your final refund can be slightly less than the full 10 percent.

The Takeaway

Pack a Visa or Mastercard, a mobile or physical IC card, and a cash cushion. Keep the IC card topped up for transit and small purchases, use the card for hotels and larger bills, and use cash for shrines, ticket-machine restaurants and anything that looks small and family-run. Expect the coin tray at the register. It is simply good manners in practice, and not something to work around.

Rules change quickly in this area, especially around IC card sales and the new tax-free system. For the official explanation of the November 2026 changes, read the Japan National Tourism Organization page linked below, and confirm details with JR East, your card issuer and the shop before you rely on any figure in this article. Exchange rates move, so the dollar amounts here are only rough guides.