Are you planning to travel to Japan? Before flying to the Land of the Rising Sun and visiting Tokyo, Osaka or Kyoto, it is necessary to familiarize yourself with the yen, the Japanese currency. Find out where and at what rate to change your pounds into yen, where to make cash withdrawals and by which payment methods to pay for your purchases once you are there, in order to avoid unpleasant surprises and unnecessary fees.
In this guide, find out everything you need to know about currency in Japan (payment methods, withdrawals and exchange) to fly with peace of mind.
What is the currency in Japan?
The yen has been the currency of Japan since 1871, issued by Nippon Ginko, the central bank of Japan:
- The yen symbol is: ¥
- Its abbreviation is JPY (Japanese Yen)
- Each yen can be divided into 100 sen and 1,000 rin (subdivisions abandoned in 1953)
Note: the yen is now the third most traded currency in the world.
What are the Japanese coins?
Japanese currency consists of different bills and coins, ranging from 1 yen to 10,000 yen:
- Japanese coins: 1, 5, 10, 50, 100, and 500 yen
- Japanese banknotes: 1,000, 2,000, 5,000 and 10,000 yen.
Note: a new 500-yen coin was put into circulation on November 1, 2021, and a new series of 1,000, 5,000 and 10,000 yen notes on July 3, 2024, with new historical and iconic faces: Eiichi Shibusawa (figure of Japanese capitalism), Umeko Tsuda (professor) and Shibasaburo Kitasato (bacteriologist). Old banknotes and coins remain valid.
Send money to Japan with Western Union
With Western Union, you can send money to Japan in just a few clicks at a very attractive rate.
How do I pay in Japan?
Cash remains the preferred means of payment in Japan, followed by credit card payment. Nevertheless, a transition to cashless payments, led by the Ministry of the Economy, has been underway since 2018. Thus, in 2024, 42.8% of commercial transactions were cashless, mainly carried out by bank card.
Compared to Asian neighbors such as China or South Korea, Japan has long maintained a very deep-rooted cash culture. While the trend has been reversed in large cities such as Tokyo and tourist destinations, small shops and more rural areas still mainly accept payments in coins and notes.
Pay in cash in Japan
Even though Japan is moving towards cashless payments, cash is still the preferred method of payment outside urban areas. In temples, traditional ryokans, local markets, small neighborhood restaurants, cash is often the only accepted form of payment. As Japan is ranked among the safest countries, it is not uncommon for Japanese people to carry relatively large sums of cash on them daily (between 30,000 and 50,000 yen).
For your payments, all Japanese notes and coins are accepted, including 10,000-yen notes. Only the 2,000-yen denominations are rarer. So, you won’t have to break your big bills to pay for your purchases.
Pay by credit or debit card
Bank card payments (debit or credit) have grown significantly in Japan since 2022. International Mastercard or Visa cards are accepted in most hotels, high-end restaurants, shops and tourist places. However, American Express cards are less often accepted.
On the other hand, as mentioned above, small independent shops, public transport or street food stalls mainly take cash. So, remember to carry Japanese notes and coins with you. In addition, remember to notify your bank of your trip so that they do not block your card.
Japan also offers IC card payment, such as Suica and Pasmo. This prepaid card was initially dedicated to paying for public transport, but since 2004, it has also been used as electronic money. Initially usable in station shops, it is now accepted in konbinis and in a growing number of shops accept them.
When the prepaid amount loaded on the card is exhausted, the IC card can be reloaded with cash, directly from the ATMs marked IC. To top up the mobile versions of the IC card (Mobile Suica, Apple or Google Wallet), payment is made by credit card.
Mobile payments in Japan
In recent years, mobile payments have been growing in Japan. As a tourist, you can take advantage of the Welcome Suica Mobile app that you can use to pay for your train travels in Japan. There are also several local mobile payment applications, via smartphone or QR code. Be careful, however: signing up for these apps often requires a Japanese phone number, and for some, a bank account or residence in Japan. As a traveler, you may not be able to create an account without at least a Japanese SIM or eSIM.
Can I pay in pounds in Japan?
No, it is generally not possible to pay in euros/pounds in Japan. The vast majority of shops, restaurants, transport, and services only accept the yen. Only a few rare high-end hotels or very touristy boutiques can accept foreign currency, at an often-unfavorable exchange rate.
Therefore, it is important for you to know how to exchange currency in Japan.
Where to exchange money in Japan?
You can exchange your money in Japan:
- In approved or private exchange offices, many of which are in town
- At exchange offices at the airport and ports
- In the banks
- In high-end hotels
- In some touristic places
Exchanging your euros into the Japanese currency at the airport or at your hotel can be convenient when you arrive and need to make your first expenses. Nevertheless, the exchange rates charged can be less competitive than in the city.
Currency exchange offices located in cities offer convenient solutions to easily exchange money in Japan, at rates that can often be competitive. The Shinjuku district of Tokyo offers a very large number of exchange offices. To change Japanese money, you will usually need your passport or ID. Also remember to recount your bills before leaving the exchange office.
Here are some best practices to remember and implement when exchanging your money in Japan:
- Check the exchange rate and feel free to compare, as rates may vary depending on the property.
- Remember to ask about possible variables or fixed fees related to exchange as well as commissions that may be hidden and always ask for a receipt at the end of each transaction.
Pick up Cash in Japan
With Western Union you can send money to yourself for cash pickup in Japan. Before your travel you can lock-in a favorable exchange rate and have Japanese yen waiting for you when you land. This way you do not have to travel with large amounts of cash and do not rely on exchange offices.
Download the Western Union app to start your transaction and collect your money in Japanese yen at one of numerous Western Union locations in Japan.
Where to withdraw money in Japan?
You can withdraw money in Japan from the ATMs of konbinis (mini-markets open 24 hours a day), airports, post offices, or Japanese banks. The withdrawal limit is usually ¥100,000 per day at Seven Bank ATMs (7-Eleven convenience stores in particular) and ¥500,000 per day or per transaction at Japan Post Bank ATMs.
Most of these ATMs accept international cards such as Visa, Mastercard and sometimes American Express. If you have a magnetic stripe withdrawal card, your daily withdrawal limit may be lower (¥30,000 at Seven Bank for example).
Several banks allow you to withdraw money in Japan safely with your international card, such as Japan Post Bank, Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation. Pay attention to the opening hours, which are often restricted. Bank counters are generally open from 9 a.m. to 3 p.m. on weekdays and are closed on weekends and holidays.
Each of your currency withdrawals in Japan is potentially accompanied by fees from your banking institution the UK (exchange rate commission and withdrawal fees). Depending on the distributor, a commission may be added. For example, the Japan Post charges around 110 to 220 yen per withdrawal (more on weekends). Since these fees are usually fixed per transaction, it is better to make less frequent but larger withdrawals.
FAQ
Yes, any amount or means of payment with a value of more than 1 million yen must be declared to Japanese customs using a specific form. For smaller amounts, you don’t have to declare anything.
Yes, the US dollar is a foreign currency accepted in almost all exchange offices in Japan, just like the euro/pound. The rate can sometimes even be more favorable when you change dollars and not euros/pounds.
With Western Union, you can easily send money to Japan from the UK
- Online in a few clicks, via com,
- With the Western Union app,
- In person, visit a Western Union location.
Your recipient will be able to receive the money in cash or in their account (via their Japanese IBAN).
This blog post is provided for informational purposes only and does not constitute legal advice. Although we strive to ensure accuracy, the information provided may change. For advice tailored to your particular situation, please consult a qualified legal or professional advisor and refer to official sources.
