What Currency Does Japan Use in Japan? Your Essential Guide to Japanese Yen

💰 Click here to see Japan Budget Breakdown

💰 Prices updated: May, 2026. Budget figures are estimates — always verify before travel.

Exchange Rate: $1 USD = ¥159.00

Daily Budget (per person)

Shoestring: ¥8,000 – ¥18,000 ($50.31 – $113.21)

Mid-range: ¥15,000 – ¥40,000 ($94.34 – $251.57)

Comfortable: ¥50,000 – ¥100,000 ($314.47 – $628.93)

Accommodation (per night)

Hostel/guesthouse: ¥2,500 – ¥7,000 ($15.72 – $44.03)

Mid-range hotel: ¥8,000 – ¥25,000 ($50.31 – $157.23)

Food (per meal)

Budget meal: ¥800.00 ($5.03)

Mid-range meal: ¥3,000.00 ($18.87)

Upscale meal: ¥15,000.00 ($94.34)

Transport

Single metro/bus trip: ¥200.00 ($1.26)

Monthly transport pass: ¥12,000.00 ($75.47)

Japan‘s currency situation trips up more first-time visitors than almost any other logistical challenge. In 2026, with tourism numbers at record highs and cashless adoption accelerating, the question isn’t simply “what currency does Japan use?” — it’s knowing how to use that currency without getting caught short at a rural ramen shop that doesn’t own a card terminal, or standing confused at a ticket machine at 11pm when your IC card balance hits zero. This guide covers everything: the yen itself, where to get it, how to carry it, and the unwritten rules that will save you from awkward moments at the register.

Japan’s Official Currency: Japanese Yen Explained

Japan’s official currency is the Japanese Yen (JPY), symbolised as ¥. It is the only currency accepted for transactions anywhere in the country. No exceptions — USD, EUR, and other foreign currencies are not accepted at shops, restaurants, or transport systems.

Banknotes

Yen banknotes come in four denominations: ¥1,000, ¥2,000, ¥5,000, and ¥10,000. The ¥2,000 note exists but is genuinely rare — most Japanese people go years without seeing one. Don’t count on receiving or spending it.

In July 2024, Japan released newly designed versions of the ¥1,000, ¥5,000, and ¥10,000 notes. The new ¥10,000 note features industrialist Shibusawa Eiichi, replacing Fukuzawa Yukichi after more than four decades. The ¥5,000 note now shows educator Tsuda Umeko, and the ¥1,000 note features physician Kitasato Shibasaburo. All notes carry updated anti-counterfeiting measures. As of 2026, both old and new series banknotes circulate freely and are equally accepted everywhere — you may get a mix of both from ATMs.

Coins

Six coin denominations are in use: ¥1, ¥5, ¥10, ¥50, ¥100, and ¥500. The ¥5 and ¥50 coins are immediately recognisable because they have a hole punched through the centre. The ¥500 coin, roughly the size of a Euro coin, is the highest-value coin and genuinely useful — worth keeping rather than letting pile up. The ¥1 coin is aluminium, almost weightless, and easy to ignore, but useful for reaching exact prices at markets or small shops.

Take a moment before your trip to look up images of each denomination. At a busy convenience store counter, recognising a ¥100 coin from a ¥500 coin without hesitation makes a real difference.

Why Cash Is Still King in Japan

Japan is not a cashless society — not yet, and not everywhere. Despite strong government pushes toward digital payments since 2020, cash remains dominant at a significant percentage of small and mid-sized businesses in 2026.

The places most likely to be cash-only include: independent ramen shops, soba restaurants, family-run izakayas, traditional ryokan and small guesthouses, local souvenir stalls, temple and shrine admission counters in rural areas, some taxis outside central Tokyo and Osaka, and local buses in smaller towns. Street food vendors and festival stalls are almost universally cash-only.

The standard recommendation is to carry ¥10,000 to ¥30,000 on your person for daily spending. Japan has an extremely low rate of street crime, so carrying cash is genuinely safe. Splitting large bills at convenience stores — buying a small drink with a ¥10,000 note — is a normal practice and cashiers will not frown at it.

IC Cards: Suica, PASMO, and the Smarter Way to Get Around

An IC card is a rechargeable smart card that works as a transit pass and a contactless payment card for small purchases. Tapping in and out of train gates, paying at convenience stores, and buying from vending machines all become frictionless. For most tourists, an IC card handles the majority of day-to-day small transactions.

Which Cards Exist and Where They Work

Suica (issued by JR East) and PASMO (issued by Tokyo’s private railways and subways) are the two most relevant cards for tourists. They are functionally interchangeable across Japan — usable on JR lines, subways, private railways, and buses nationwide, as well as at most convenience stores and vending machines. Visitors to western Japan will also encounter ICOCA (issued by JR West), which works on the same interoperable network.

Physical Cards in 2026: A Known Complication

Due to a global semiconductor shortage, the sale of standard new Suica and PASMO cards to tourists was suspended in 2023. The situation is expected to ease by 2026, but availability cannot be guaranteed. Two tourist-specific physical card options exist as reliable fallbacks:

• Welcome Suica — issued by JR East. Costs ¥500 (non-refundable purchase fee, no deposit). Valid for 28 days from purchase. Available at Narita Airport Terminal 1, 2, and 3 stations, Haneda Airport Terminal 3 station, and major JR East Travel Service Centers.
• PASMO PASSPORT — issued by Tokyo’s private railway consortium. Also costs ¥500 (non-refundable), no deposit, valid for 28 days. Available at major stations in the Tokyo metropolitan area including Narita and Haneda airports.

If a regular Suica or PASMO card is available to you, it requires a ¥500 refundable deposit. When you surrender it at a designated station office, you receive the ¥500 back, minus a ¥220 handling fee if any balance remains on the card.

Mobile IC Cards: The Recommended Option

For most tourists with a compatible smartphone, Mobile Suica or Mobile PASMO via Apple Pay or Google Wallet is the easiest solution. No physical card, no deposit, no queuing at a machine.

iPhone setup via Apple Pay:

1. Open the Wallet app and tap the + sign.



2. Select “Transit Card,” then choose Suica or PASMO.
3. Select a new card and choose your initial top-up amount (minimum ¥1,000).
4. Confirm payment using a credit or debit card already linked to Apple Pay.
5. Top up at any time directly from the Wallet app.

Android setup via Google Wallet:

1. Download the Mobile Suica or Mobile PASMO app from the Google Play Store.
2. Register an account within the app.
3. Follow prompts to create a new card and link a credit or debit card for top-ups.
4. Use Google Wallet to tap at gates and readers.

Top-ups can also be done at any JR or private railway ticket machine and at the counter of any 7-Eleven, Lawson, or FamilyMart — just say the card name and the top-up amount to the cashier.

Credit and Contactless Cards in Japan

Credit card acceptance in Japan has expanded meaningfully since 2020, driven by government cashless promotion policies and evolving consumer habits. In 2026, major urban areas are substantially more card-friendly than they were five years ago.

Visa and Mastercard are the most widely accepted international card networks. JCB (a Japanese network) is accepted almost everywhere. American Express and Diners Club work at larger hotels, department stores, and upmarket restaurants, but not reliably at mid-range or independent spots.

Cards are reliably accepted at: major hotels, department stores (Takashimaya, Isetan, Loft), electronics chains (Yodobashi, Bic Camera), chain restaurants and izakayas (Yoshinoya, Sushiro, Gusto), JR ticket counters for Shinkansen tickets, most taxis in central Tokyo and Osaka, and convenience stores.

Contactless payment — tap-to-pay using Visa payWave, Mastercard Contactless, Apple Pay, or Google Pay — is increasingly available at the same outlets, particularly convenience stores and chain retailers. Look for the contactless symbol on the terminal.

The best international cards for Japan in 2026 are those with zero foreign transaction fees. Cards from Wise, Revolut, Charles Schwab, and similar fintechs are consistently recommended by long-term Japan travellers because they convert at interbank rates and don’t charge the typical 1.5–3% foreign transaction fee that traditional bank cards apply.

Finding ATMs That Actually Work With Your Card

Not every ATM in Japan accepts international cards. Bank-branded ATMs on the street frequently do not. Knowing exactly which machines to use saves real frustration.

The Reliable Networks

• Seven Bank ATMs (inside 7-Eleven stores) — the gold standard for tourists. Found in almost every 7-Eleven nationwide, operating 24 hours, with clear English-language menus. Accepts a wide range of international Visa, Mastercard, Maestro, Cirrus, and American Express cards.
• Lawson Bank ATMs — similar reliability and interface to Seven Bank, located inside Lawson convenience stores.
• Japan Post Bank ATMs — located at post offices and some supermarkets. Reliable for international cards, but operating hours vary (post offices typically close evenings and weekends).
• Aeon Bank ATMs — found in Aeon malls and some shopping centres. A solid option if you’re near one.

Fees to Expect

Two layers of fees apply to international ATM withdrawals in Japan. First, the Japanese ATM operator’s fee: Seven Bank and Lawson Bank typically charge around ¥110 to ¥220 per transaction for international card withdrawals. Second, your own bank’s fees: most traditional banks charge a flat ATM fee of ¥300–¥600 equivalent plus a foreign transaction fee of 1.5–3%. Using a no-fee card like Wise or Schwab eliminates the second layer entirely.

Withdrawal limits typically sit between ¥50,000 and ¥100,000 per transaction. If you need more, run a second transaction.

Step-by-Step: Using a 7-Eleven ATM

1. Enter any 7-Eleven and locate the Seven Bank ATM (distinct orange and white branding).
2. Insert your card.
3. Select “English” or “International Card” on the touchscreen.
4. Choose “Withdrawal” and enter your PIN.



5. Select the amount and confirm.
6. Collect your cash, card, and receipt.

Tax-Free Shopping: How Tourists Save 10%

Japan’s consumption tax is 10%. As a tourist, you are eligible to purchase goods tax-free at designated stores — a legitimate and easy saving that adds up quickly on electronics or clothing purchases.

Who Qualifies

Non-residents staying in Japan for less than six months. You must present your original passport at the point of purchase — photocopies are not accepted.

Minimum Spend Thresholds

• General goods (clothing, electronics, bags, accessories): ¥5,000 or more at a single store on a single day.
• Consumable goods (food, cosmetics, medicine, tobacco, beverages): ¥5,000 to ¥500,000. These must remain sealed in a special tax-free bag and cannot be opened or used inside Japan before departure.
• Combined purchases of general and consumable goods can be combined to meet the ¥5,000 threshold under specific conditions.

How the Process Works

1. Look for stores displaying the “Tax-Free” logo or signage. Department stores, electronics retailers (Yodobashi Camera, Bic Camera), and many souvenir shops participate.
2. At the checkout or a dedicated tax-refund counter, present your passport and the items you wish to buy tax-free.
3. The store deducts the 10% consumption tax directly from your purchase price, or provides a cash refund.
4. A “Record of Purchase” slip is attached to your passport. Do not remove it before you leave Japan.
5. At your departure airport or port, present your passport with the attached slips to customs officials. They may inspect the items.

Note: services are not eligible. Hotel stays, restaurant meals, train tickets, and attraction entry fees do not qualify for tax-free treatment. Only physical goods purchased for personal use count.

Efforts to digitise the tax-free record system have been ongoing since 2024, and some larger retailers are piloting digital processes that reduce reliance on physical passport slips. As of 2026, both digital and paper systems coexist depending on the retailer.

2026 Budget Reality: What Everything Actually Costs in JPY

Exchange rates shift, but as of 2026, most Western currencies buy meaningfully more yen than they did in 2019 — a favourable position for inbound tourists, though local prices have also edged up. Here’s a realistic breakdown by spending tier.

Budget Traveller (hostels, convenience store meals, local transit)

• Dormitory hostel bed: ¥2,500–¥4,500 per night
• Convenience store meal (onigiri + drink + snack): ¥500–¥800
• Ramen at a local shop: ¥900–¥1,300
• Single subway or metro ride: ¥180–¥260
• Day of local transit on IC card: ¥800–¥1,500
• Typical daily spend (excluding accommodation): ¥3,000–¥5,000

Mid-Range Traveller (private hotel rooms, sit-down meals, mix of transit)

• Business hotel (single room): ¥8,000–¥15,000 per night
• Set lunch at a mid-range restaurant: ¥1,000–¥2,000
• Dinner at an izakaya (food and drinks): ¥2,500–¥5,000 per person
• Tokyo to Kyoto Shinkansen (reserved seat, one way): ¥14,000–¥15,000
• Typical daily spend (excluding accommodation and intercity travel): ¥6,000–¥12,000

Comfortable Traveller (boutique hotels, quality dining, taxis where convenient)

• Boutique hotel or mid-range ryokan: ¥18,000–¥45,000 per night
• Sushi omakase dinner: ¥15,000–¥40,000 per person
• Taxi across central Tokyo: ¥1,500–¥3,000
• Department store lunch set: ¥2,000–¥4,000
• Typical daily spend (excluding accommodation): ¥20,000–¥40,000

One practical note: Japan’s consumption tax is included in displayed prices at most shops and restaurants since the 2021 pricing rules took effect. The price you see on the tag is what you pay.

The No-Tipping Rule and Other Payment Customs

Tipping is not practised in Japan. Not at restaurants. Not at hotels. Not in taxis. Not at spas or after a guided tour. Leaving cash on the table at the end of a meal — a reflex for many Western travellers — will cause genuine confusion. Staff may chase you down the street thinking you forgot your change. In some contexts, offering a tip can read as slightly condescending, implying the server needed an extra incentive to do their job well.

Excellent service in Japan is standard, not exceptional. The price you pay already reflects the full cost of that service.

The rare exception is in very specific high-end private hospitality settings — a personal tour guide hired privately for a full day, or a traditional tea ceremony host in an intimate setting — where a small, thoughtfully wrapped gift (not loose cash) might be appreciated as a cultural gesture. Even then, it is not expected.

Other Payment Customs Worth Knowing

• Paying at the register, not the table: In most Japanese restaurants, you take your bill to the register near the entrance to pay, rather than handing money or a card to your server at the table.
• The tray: Many cashiers place a small tray on the counter. Put your cash or card on the tray, not directly into the cashier’s hand. They will return your change and receipt the same way.
• Splitting bills: Japan has no strong tradition of splitting bills the way Western countries do. Asking to split a restaurant bill between multiple cards is unusual and may not be possible at smaller places. One person often pays and gets reimbursed separately. Cash makes this simple.

Common Money Mistakes Tourists Make in Japan

Even well-prepared travellers make predictable errors. These are the ones that come up again and again.

• Arriving with no yen and no plan to get cash quickly. Airport exchange rates are poor, but it is worth exchanging a small amount (¥5,000–¥10,000) before you clear arrivals, just to cover transit to your hotel. The Seven Bank ATM at the airport is a better option, but queues can be long on busy arrival days.
• Relying entirely on cards. A traveller who spends a week in Japan using only a credit card will miss many of the best small restaurants, local markets, and neighbourhood experiences that are cash-only.



• Ignoring IC card balance. Train gates reject a card with insufficient balance. Top up regularly rather than letting it run close to zero — ¥1,000 is the minimum top-up in most cases.
• Using a card with foreign transaction fees at ATMs. Stacking your bank’s 3% foreign transaction fee on top of Seven Bank’s ¥220 ATM fee adds up over a two-week trip. A Wise or equivalent card used at Seven Bank ATMs significantly reduces this cost.
• Trying to use IC cards for Shinkansen travel. IC cards work for local and regional trains, but not for reserved or unreserved Shinkansen seats (except on certain short IC-compatible routes). Buy Shinkansen tickets at the JR ticket counter or via the Smart EX or Ekinet apps before boarding.
• Leaving Japan with unspent yen and nowhere to exchange. Spend down your IC card balance at convenience stores before departure. Use remaining cash at the airport. Currency exchange desks at international airports take yen back, but rates going out are also not generous.

Frequently Asked Questions

What currency does Japan use?

Japan uses the Japanese Yen (JPY, ¥) exclusively. No other currency is accepted for purchases anywhere in the country. Banknotes come in ¥1,000, ¥2,000 (rare), ¥5,000, and ¥10,000 denominations. Coins run from ¥1 to ¥500. Always have yen on hand — foreign currencies cannot be spent directly at shops or restaurants.

Can I use my credit card everywhere in Japan?

Not everywhere. Major hotels, chain restaurants, department stores, and large retailers in cities accept Visa and Mastercard reliably. However, many smaller independent restaurants, rural guesthouses, local shops, and some taxis remain cash-only in 2026. Always carry at least ¥10,000–¥20,000 in cash as a backup, even if you plan to use cards primarily.

Where is the best place to withdraw yen in Japan?

Seven Bank ATMs inside 7-Eleven convenience stores are the most reliable option for international cardholders. They operate 24 hours, have English menus, and accept most major international cards. Japan Post Bank ATMs and Lawson Bank ATMs are solid alternatives. Standard bank ATMs on the street frequently do not accept foreign cards — avoid them.

Do I need to tip in Japan?

No. Tipping is not customary in Japan at restaurants, hotels, taxis, or anywhere else. Attempting to tip can cause confusion or mild awkwardness, and staff may refuse or return the money. Service quality in Japan is consistently high because it is a professional standard, not something incentivised by gratuities. Simply say arigatou gozaimashita — that is enough.

What is tax-free shopping in Japan and how does it work?

Tourist visitors staying less than six months can buy eligible goods tax-free, saving Japan’s 10% consumption tax. You need your original passport at the point of purchase. The minimum spend is ¥5,000 at a single store per day. Look for the “Tax-Free” logo at participating shops. A purchase record slip is attached to your passport and checked by customs on departure.

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📷 Featured image by Juan Montano on Unsplash.