Japan currency guide for smarter travel

Beyond the excitement of planning your Japan itinerary, knowing how currency and payments work is important to make your travels smoother. Japan primarily uses the Japanese Yen (JPY, ¥), with cash still common but digital payments rising. This guide will help you understand currency in Japan, payment methods, and useful money-saving tips for your trip.

List of currency notes in Japan

The currency of Japan Yen (JPY, ¥) consists of banknotes and coins. Banknotes come in 1,000, 2,000, 5,000, and 10,000 yen denominations, while coins include 1, 5, 10, 50, 100, and 500 yen. However, a 2,000 yen note is rare and not commonly found in circulation. The Yen is widely used, though digital payments are becoming increasingly popular across Japan.

Using Indian currency

If you travel from India, you must exchange your Indian Rupees (INR) for Japanese Yen (JPY). Here are some ways to exchange Indian currency in Japan:

• Currency exchange counters: For currency exchange, Japan has dedicated kiosks at airports, banks, and major train stations.
• ATMs: International ATMs at post offices and 7-Eleven stores allow withdrawals using an international debit/credit card.
• Online forex services: Some Indian banks and forex services let you order JPY in advance.
• Credit/debit cards: Payment through Visa, MasterCard, and Amex cards are acceptable.

Methods of payment in Japan

While Japan has a reputation for being a cash-based society, digital payment methods are growing in popularity. Here are the primary payment methods in Japan:

1. Cash (Japanese Yen): It is still the most commonly used payment method in rural areas. Many small shops, street vendors, and certain restaurants operate on a cash-only basis.
2. Credit and debit cards: You can credit or debit cards at hotels, department stores, and large restaurants. MasterCard, Visa, and American Express are the most commonly accepted cards.
3. Integrated Circuit cards (IC cards)/prepaid travel cards: Suica, Pasmo, and ICOCA are rechargeable cards used for public transport, vending machines, and some stores.
4. Mobile payments: PayPay, Line Pay, and Rakuten Pay are popular digital wallets in Japan. Apple Pay and Google Pay are also accepted in some places.

Tips to save money when travelling in Japan

Japan can be expensive, but smart planning can help you save money. Here are some useful tips:

1. Use public transport wisely: You can get a Japan Rail Pass for travel between cities. Use the IC cards (Suica, Pasmo) for convenient and discounted travel. Don't forget to take advantage of local bus and metro day passes.
2. Eat like a local: You can visit convenience stores like 7-Eleven or FamilyMart for affordable meals. For budget meals, choose conveyor belt sushi restaurants or ramen shops.
3. Stay in budget accommodation: Capsule hotels and guesthouses are much cheaper than regular hotels.

FAQs

1. Can I use US dollars or Indian Rupees in Japan?

No, only the Japanese Yen is accepted.

2. Are credit cards widely accepted in Japan?

Credit cards are accepted in major stores, hotels, and restaurants, but smaller shops and local restaurants may only accept cash.

3. Where can I exchange Indian Rupees for Japanese Yen?

You can exchange INR at Japan's banks, airports, and forex exchange counters.

4. What is the best way to carry money in Japan?

Carrying a mix of cash and a travel card (like Suica or Pasmo) is recommended. Having a credit or debit card for emergencies is also useful.

5. Are ATMs easily available for foreign cards?

ATMs at 7-Eleven, FamilyMart, and post offices accept international cards.

Conclusion

Understanding Japan's currency and payment methods will make your trip smoother and stress-free. While Japan is still a cash-friendly country, digital payments are growing. Be prepared by exchanging enough cash, carrying a travel card, and using cost-saving strategies.

In addition to managing your money, securing travel insurance for Japan is essential. Events like medical emergencies, lost baggage, or flight cancellations can lead to unnecessary stress. A good travel insurance plan will help you avoid financial strain and handle any travel disruptions quickly, ensuring a worry-free journey.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.