If there is one thing that has changed the most for people living in Japan from 2019 to 2025, it’s how little physical cash you actually need to carry now. Before 2019, Japan was famously cash-heavy—credit cards were accepted at convenience stores, big supermarkets, and major chain retailers, but small restaurants, local specialty shops, and many 100-yen stores were strictly cash-only. For travelers, this often meant carrying a thick wallet of coins and bills everywhere.

And if it were just banknotes, it might still be manageable. But Japan uses coins for anything below ¥1,000—¥1, ¥5, ¥10, ¥50, ¥100, and ¥500—so your wallet would get heavy fast. That was everyday life for a long time.

So what does the mobile payment / electronic payment scene look like now in 2025? And is cash still essential when traveling around Japan?

How Much Cash to Bring for Japan Travel? Essential Guide for Travelers

Payment before 2019 ……

As mentioned before, up until 2019 Japan was firmly in its cash-first era. People relied heavily on cash, supplemented by credit cards, and electronic payments barely existed. If you stepped outside without cash, there was a high chance you’d run into trouble at some point—this was so common that Japanese language schools even taught dialogues like:

Waiter: Hello, the total is 3,000 yen.
Customer: Oh no, I don’t have any cash with me. Is there a bank nearby? I’ll go get some money from the ATM, okay?
Waiter: Yes, there’s a bank to the left outside the door.

The reasons were simple: Japanese yen is extremely secure (counterfeits are practically nonexistent), cash flow is stable, and Japan is safe enough that even carrying large amounts of cash doesn’t feel risky. Cash transactions were convenient, trusted, and culturally ingrained.

However, in 2019 the Japanese government announced a national goal to raise the cashless payment ratio to 40% by 2025—partly to modernize the economy and partly to prepare for the Tokyo 2020 Olympics.

Changes to electronic payment from 2020

Under normal circumstances, Japan’s deeply rooted habits might have kept the cash-first culture going for many more years. But in early 2020, everything changed. The COVID-19 pandemic forced a dramatic shift—face-to-face transactions dropped sharply, online shopping surged, and people were suddenly pushed toward cashless options.

With the first state of emergency in April 2020, cash circulation slowed significantly, while demand for online shopping and delivery services exploded. Japan’s restaurant industry was hit hard—many shops closed, while others pivoted to takeout for the first time. Delivery apps, which barely existed in 2019, suddenly became essential.

Uber Eats, Demaekan, and several new competitors entered the market. By 2021, Tokyo alone had more than seven active delivery platforms, and the industry grew over 50% in 2020—ten times faster than the previous year.

Every part of this shift—online shopping, delivery orders, takeout—depended on electronic payments. As a result, Japan’s cashless usage jumped dramatically from 27% in 2019 to around 36% in 2020. The government’s 40% target for 2025 suddenly felt very achievable.

In short: Japan finally entered a “smartphone-only travel” era where you could navigate life with little to no physical money.

Common electronic payment methods in Japan  (Updated for 2025)

Here are the most common electronic and mobile payment methods you’ll encounter in Japan today. If you are planning a trip, you’ll see these everywhere—and most of them are even more convenient now than they were back in 2021.

Credit Card / Debit Card

Most stores in Japan accept Visa and Mastercard, and acceptance has grown steadily through 2025. Even small and mid-size shops that were once cash-only have started supporting card payments.

If you’re using a foreign-issued card, be aware that your bank may charge currency conversion or overseas purchase fees—check ahead if possible.

Convenience stores in Japan allow cash withdrawals from many foreign cards, but fees apply, so swiping or tapping your card is usually more cost-efficient.

Transportation IC cards: Suica / Pasmo (and Welcome Suica)

If you’ve been to Japan, you’ve probably used a Suica or Pasmo card to ride trains. What many travelers overlook is that these IC cards double as e-wallets—they work at convenience stores, vending machines, station kiosks, and many restaurants.

Compared with credit cards, IC cards help you avoid foreign card fees and are extremely fast to use. Most major station ticket machines now support English, Chinese, and Korean interfaces, making them easy to charge or purchase.

Traditional Suica/Pasmo cards require a ¥500 deposit, refundable upon return at a staffed counter. However, since 2023 the tourist-friendly Welcome Suica has become more common—it has no deposit and is valid for 28 days, making it ideal for short trips. Note that some refunds may incur processing fees, so it’s best to use up the remaining balance before returning the card.

PayPay

PayPay—launched by SoftBank and Yahoo!—has grown into Japan’s largest QR-code payment method. As of 2025, millions of shops accept it nationwide, from convenience stores to local restaurants and even small market stalls.

PayPay also supports peer-to-peer transfers, making it a popular way for locals to split bills. However, it still requires a Japanese phone number for registration. This means tourists generally cannot fully use PayPay unless they register after arriving in Japan.

That said, many PayPay merchants now support Alipay+, allowing foreign travelers with Alipay to pay simply by scanning the same QR code—no PayPay account needed.

PayPay: Enjoy Cashless Shopping in Japan!

LINE Pay (Discontinued in Japan)

Update: LINE Pay officially ended its service in Japan on April 30, 2025. Any balances were required to be withdrawn or transferred before the shutdown. Because the service is no longer available, LINE Pay should not be considered a payment option for travelers visiting Japan.

For international visitors who want to use mobile payments in Japan, here are more reliable and traveler-friendly alternatives that actually work in Japan in 2025:

• Apple Pay & Google Pay: The easiest and most reliable method for tourists. When linked to an international credit card, Apple Pay and Google Pay work at most major chains, convenience stores, restaurants, and many taxis.
• Suica or PASMO (Transit IC Cards): You can add a Suica or PASMO card directly to your Apple Wallet or Google Wallet. These can be used for trains, buses, convenience stores, vending machines, and many shops. They’re one of the most convenient options for travelers.
• PayPay (Limited for Tourists): Extremely popular among Japanese locals, but registration often requires a Japanese phone number. Some travelers can still use PayPay through foreign-issued cards, but compatibility is inconsistent.
• Credit Cards: Visa, Mastercard, and AMEX are widely accepted in Tokyo and major cities. Smaller towns may still prefer cash.

In short, LINE Pay is gone, and the most convenient payment options for travelers in 2025 are Apple Pay, Google Pay, Suica/PASMO in your mobile wallet, and a physical credit card as backup.

iD / Apple Pay / Google Pay

These three are technically different services, but in daily life they function very similarly: tap-and-go contactless payments using your phone or smartwatch. Among all e-payment types in Japan, this has become one of the most convenient for international travelers.

Apple Pay and Google Pay on foreign phones work at many NFC terminals, as long as your card supports global contactless networks (Visa Touch, Mastercard Contactless, etc.). When paying in Japan, you may need to tell the cashier “iD” or “QUICPay,” depending on the terminal type.

In the post-pandemic years, contactless usage increased dramatically, and by 2025 most major chains, cafés, supermarkets, and many independent shops accept tap payments.

If a cashier looks confused when you say “Apple Pay” or “Google Pay,” simply say “iD” and then tap your phone—the system will handle it automatically.