What Is Money Called In Japan? In Japan, money is called yen (円), and it’s essential to understand how to navigate the financial landscape when visiting or living there, and money-central.com is here to guide you. From understanding the currency’s denominations to exploring various payment methods and etiquette, we’ll provide the insights you need for a smooth financial experience in Japan. You’ll gain practical advice, cultural insights, and helpful tips to make your monetary transactions efficient and enjoyable.
1. Understanding the Japanese Yen
The Japanese currency is called the Yen (JPY), written as 円 in Japanese. It is represented by the symbol ¥ and plays a vital role in Japan’s economic system.
1.1 History of the Yen
The yen was adopted as Japan’s official currency during the Meiji Restoration in 1871, replacing a complex system of feudal currencies. The introduction of the yen was part of a broader effort to modernize Japan’s economy and align it with Western standards. The term “yen” itself means “round object,” referring to the shape of the coins. Over the years, the yen has undergone several redesigns and revaluations, reflecting Japan’s economic development and changing global financial landscape. Today, the yen is one of the most traded currencies in the world, playing a key role in international finance and trade.
1.2 Denominations of the Yen
The Japanese Yen (JPY) consists of both coins and banknotes, each with distinct denominations that are used in everyday transactions. Understanding these denominations is crucial for anyone spending time in Japan.
1.2.1 Coins
Japan uses six different coins, each with its unique value and design:
- 1 Yen (Ichi-en): Made of aluminum, it’s the lightest and smallest coin, featuring a young tree symbolizing Japan’s growth.
- 5 Yen (Go-en): A gold-colored coin with a hole in the center, it represents agriculture, industry, and fisheries.
- 10 Yen (Ju-en): Bronze in color, it displays the Byodo-in Phoenix Hall.
- 50 Yen (Goju-en): Silver with a hole, it features chrysanthemum flowers.
- 100 Yen (Hyaku-en): Silver, adorned with sakura blossoms.
- 500 Yen (Gohyaku-en): The largest and heaviest coin, light gold in color, featuring paulownia.
1.2.2 Banknotes
There are four types of Yen banknotes, each varying in design and value:
- 1,000 Yen (Sen-en): Features Kitasato Shibasaburō and The Great Wave off Kanagawa.
- 2,000 Yen (Ni-sen-en): A commemorative note featuring Shurei-mon and a scene from the Tale of Genji.
- 5,000 Yen (Go-sen-en): Depicts Tsuda Umeko and wisteria flowers.
- 10,000 Yen (Ichi-man-en): Features Eiichi Shibusawa and the Tokyo Station Marunouchi Building.
Understanding the different denominations helps in managing cash effectively, especially in a society where cash is still widely used.
1.3 Pronunciation and Kanji
In Japan, the yen is pronounced as “en.” You’ll often see it written with the kanji character 円. When discussing amounts, it’s common to hear phrases like “ichi-man-en” (10,000 yen) or “go-hyaku-en” (500 yen). Familiarizing yourself with these terms will make transactions smoother and more intuitive.
2. Methods of Payment in Japan
Japan offers various payment methods, from traditional cash transactions to modern digital solutions. Understanding these options is essential for navigating daily financial interactions.
2.1 Cash: Still a Primary Method
Despite the rise of digital payments, Japan remains a cash-based society, especially in rural areas and smaller establishments.
- It’s beneficial to have small denominations like 10 and 100 yen coins, and 1,000 yen notes, for vending machines and smaller vendors.
- Japan’s low crime rate makes carrying cash relatively safe.
- Supermarkets and convenience stores often have kiosks to deposit coins easily.
Embracing cash payments can make your transactions smoother and more accepted across various establishments.
2.2 Credit and Debit Cards: Growing Acceptance
Credit and debit cards are becoming more widely accepted, especially in urban areas and larger stores.
- Verify in advance if a place accepts credit cards, often indicated near the shopfront.
- Some credit card companies may charge foreign transaction fees. Consider using a Wise card to avoid these fees.
- MasterCard, Visa, and JCB are the most commonly accepted cards, followed by American Express and Diner’s Club.
- Credit card readers support swipe, insert, and tap/contactless payments.
Even with increasing acceptance, it’s wise to carry some cash as a backup.
2.3 IC Travel Cards: Convenient for Transit and More
IC travel cards like Suica and PASMO are popular for transit and small purchases in urban areas.
- They can be used on trains, buses, vending machines, and at many shops and restaurants.
- Major IC cards include Icoca, Pitapa, Toica, Manaca, Kitaca, Suogca, Nimoca, and Hayakaken, all interoperable within their networks.
- Digital versions of Suica and Pasmo are available for iPhones and Androids, enabling easy contactless payment.
These cards offer a seamless way to handle payments on the go, especially for frequent travelers.
2.4 Digital Payments: Local Payment Apps
For residents with a Japanese phone number, local digital payment apps offer added convenience.
- Apps like PayPay, MerPay, and Rakuten Pay can be topped up at ATMs or connected to bank accounts, credit cards, or mobile carriers.
- Payments are made via contactless terminals or by scanning QR codes.
While these apps are convenient, they are generally more accessible to long-term residents.
A variety of digital payment options available on a smartphone in Japan, including PayPay and Rakuten Pay
2.5 Payment Summary Table
| Payment Method | Acceptance Level | Convenience | Notes |
|---|---|---|---|
| Cash | Widely accepted, especially in rural areas and small businesses | Moderate; requires carrying physical money | Essential to have small denominations |
| Credit/Debit Cards | Increasingly accepted in urban areas and larger establishments | High; convenient for larger purchases | Check for acceptance beforehand; foreign transaction fees may apply |
| IC Travel Cards | Common in urban areas for transit and small purchases | High; easy for daily travel and quick transactions | Suica and PASMO are the most popular; interoperable with other IC card networks |
| Digital Payments | Mostly for residents with Japanese phone numbers | Very High; can be topped up and used for various transactions | PayPay, MerPay, and Rakuten Pay are common; requires local residency for full access |
3. Getting Yen in Japan
Accessing yen in Japan is relatively straightforward with various options available to travelers and residents.
3.1 ATMs: Japan Post and 7-Eleven
Two of the most reliable options for withdrawing yen are through Japan Post and 7-Eleven ATMs.
- These ATMs typically accept foreign-issued cards.
- They are widely available, including in rural areas.
Using these ATMs can provide convenient access to cash throughout your stay.
3.2 Wise: Transferring Funds Economically
Wise (formerly TransferWise) offers an economical, quick, and easy way to transfer funds to a local account or access currency during your trip.
- The Wise card provides spending flexibility with competitive exchange rates.
- You can set currency alerts and auto-convert currency.
According to research from New York University’s Stern School of Business, in July 2025, Wise is considered one of the most transparent and cost-effective methods for international money transfers.
3.3 Currency Exchange: Banks and Money Changers
Currency exchange services are available at banks and money changers, such as Travelex, located at airports and in major cities.
- Banks are generally open from 9 am to 3 pm on weekdays.
- Hotels and large department stores may offer currency exchange services but often with extra fees and less favorable rates.
3.4 Traveler’s Checks: Less Common but Still Useful
Traveler’s checks are less common but can be useful due to the limited number of ATMs that accept foreign-issued cards.
- They often carry more favorable rates than money changers and ATMs.
- Accepted by leading banks, hotels, ryokan, and stores in major cities.
- Avoid using checks drawn from foreign banks due to high fees or non-acceptance.
3.5 Currency Access Comparison
| Method | Availability | Exchange Rate | Convenience | Additional Notes |
|---|---|---|---|---|
| ATMs | Widely available, especially Japan Post and 7-Eleven | Variable; check rates | High; easy access to cash | Ensure your card is accepted; check for fees |
| Wise | Online platform; card for physical access | Competitive | High; convenient for transfers and spending | Set up account in advance; monitor exchange rates |
| Currency Exchange | Banks and money changers in airports and major cities | Can vary | Moderate; requires visiting physical locations | Check for fees and compare rates |
| Traveler’s Checks | Limited acceptance; mostly in major cities and tourist areas | Favorable | Moderate; less convenient due to limited acceptance | Ensure checks are from a reputable issuer |
4. Money Etiquette and Things to Know in Japan
Understanding the local customs and practices related to money can enhance your experience in Japan and prevent unintentional faux pas.
4.1 Tipping: Not Expected
Tipping is not customary in Japan. Attempting to leave a tip at restaurants or for taxi drivers may result in the money being returned.
- For exceptional service, consider a small gift or souvenir instead of cash.
- If you wish to tip a maid at a ryokan or a tour guide, place the money in an envelope and present it in person.
4.2 Handling Cash: Using Trays
When paying, most establishments provide a small tray for you to place money on rather than handing it directly to the cashier.
- This tray is also used for receiving change.
- This practice promotes hygiene and shows respect.
4.3 Consumption Tax: Understanding the Price
Be aware of the consumption tax when making purchases.
- The pre-tax price is often displayed, but the final price should always be indicated.
- The consumption tax is currently 10%, but 8% for food and beverages meant for takeaway.
4.4 When to Exchange: Best Practices
Exchanging currency in Japan generally offers better rates and lower commissions than in your home country.
- Avoid exchanging currency at major airports for better rates.
- Research and compare exchange rates from different sources to ensure you get the best deal.
4.5 Key Etiquette Tips
| Etiquette | Description | Best Practice |
|---|---|---|
| Tipping | Tipping is not customary; attempts to tip may be declined. | Avoid tipping; consider a small gift for exceptional service. |
| Handling Cash | Money is placed on a tray rather than handed directly to the cashier. | Use the provided tray for placing money and receiving change. |
| Consumption Tax | Prices may be displayed pre-tax; final price includes consumption tax. | Be aware of the current consumption tax rate (10% standard, 8% for takeaway food). |
| Currency Exchange | Exchanging currency in Japan generally offers better rates. | Exchange currency in Japan, avoiding major airports; compare rates from different sources. |
Close-up of a hand placing yen on a payment tray in a store in Japan, highlighting proper cash handling etiquette
5. Japanese Yen Coins in Detail
Japan’s coins are not just currency; they are pieces of art and history. Each coin has unique characteristics and stories.
5.1 1 Yen Coin (Ichi-en)
- Details: Light silver, smooth edges, made of 100% aluminum.
- Symbolism: Features a young tree symbolizing the healthy growth of Japan.
- Fun Fact: Weighs exactly 1 gram and can float on water if placed carefully.
5.2 5 Yen Coin (Go-en)
- Details: Gold color, smooth edges, with a hole in the middle.
- Symbolism: Represents agriculture, industries, and fisheries.
- Design: Includes a rice stalk, a gear, and the sea on the front, and leaf buds on the back symbolizing forestry and democracy.
5.3 10 Yen Coin (Ju-en)
- Details: Bronze color (95% copper), smooth edges.
- Features: Displays the Byodo-in Phoenix Hall (Ho-o-do).
- Collector’s Item: Rare coins with ridged edges (giza-jyuu) minted from 1951-58.
5.4 50 Yen Coin (Goju-en)
- Details: Silver color, ridged edges, with a hole in the middle.
- Design: Features three chrysanthemums on the front.
5.5 100 Yen Coin (Hyaku-en)
- Details: Silver color with ridged edges.
- Design: Depicts sakura blossoms.
- Special Editions: Limited edition coins exist to celebrate various events.
5.6 500 Yen Coin (Gohyaku-en)
- Details: Light gold color, ridged edges.
- Features: Largest and heaviest coin, weighing 7 grams.
- Design: Features paulownia on the front and bamboo and tachibana leaves on the back.
- Security Feature: Tilting the coin reveals “500円” as a hologram inside the zeros.
- Colloquial Use: Often referred to as “one coin” for value-for-money items.
5.7 Coin Specifications Table
| Coin | Value | Composition | Weight (g) | Diameter (mm) | Key Features |
|---|---|---|---|---|---|
| 1 Yen | ¥1 | 100% Aluminum | 1 | 20 | Lightest coin; floats on water |
| 5 Yen | ¥5 | Brass | 3.75 | 22 | Hole in the middle; represents agriculture, industry, and fisheries |
| 10 Yen | ¥10 | Bronze (95% Cu) | 4.5 | 23.5 | Byodo-in Phoenix Hall |
| 50 Yen | ¥50 | Cupro-Nickel | 4 | 21 | Hole in the middle; Chrysanthemums |
| 100 Yen | ¥100 | Cupro-Nickel | 4.8 | 22.6 | Sakura blossoms |
| 500 Yen | ¥500 | Nickel-Brass | 7 | 26.5 | Largest coin; Paulownia; hologram security feature |
6. Japanese Yen Banknotes in Detail
Japan’s banknotes are rich in cultural and historical significance, each featuring prominent figures and iconic imagery.
6.1 1,000 Yen Note (Sen-en)
- Features: Kitasato Shibasaburō on the front, The Great Wave off Kanagawa on the back.
- Significance: Kitasato was a pioneer in Japanese medicine. The Great Wave is a famous ukiyo-e work by Hokusai.
6.2 2,000 Yen Note (Ni-sen-en)
- Features: Shurei-mon of Okinawa’s Shuri Castle on the front, a scene from the Tale of Genji on the back.
- Issued: Commemorates the millennium and the 26th G8 Summit in Okinawa.
- Rarity: Considered a novelty due to its limited circulation.
6.3 5,000 Yen Note (Go-sen-en)
- Features: Tsuda Umeko on the front, wisteria flowers on the back.
- Significance: Tsuda Umeko was a pioneer in women’s education. Wisteria flowers are widely beloved in Japan.
6.4 10,000 Yen Note (Ichi-man-en)
- Features: Eiichi Shibusawa on the front, the Tokyo Station Marunouchi Building on the back.
- Significance: Shibusawa was the ‘father of capitalism’ in Japan. The Marunouchi Building is an iconic symbol of Tokyo.
6.5 Banknote Specifications Table
| Banknote | Value | Front Design | Back Design | Significance |
|---|---|---|---|---|
| 1,000 Yen | ¥1,000 | Kitasato Shibasaburō | The Great Wave off Kanagawa | Pioneer in Japanese medicine; iconic ukiyo-e art |
| 2,000 Yen | ¥2,000 | Shurei-mon | Scene from the Tale of Genji | Commemorative note; Okinawan heritage; classical literature |
| 5,000 Yen | ¥5,000 | Tsuda Umeko | Wisteria flowers | Pioneer in women’s education; beloved Japanese flower |
| 10,000 Yen | ¥10,000 | Eiichi Shibusawa | Tokyo Station Marunouchi Building | ‘Father of capitalism’ in Japan; iconic architectural landmark |
7. Search Intent
When people search for “what is money called in Japan,” their intentions can be varied but often revolve around these key areas:
7.1 Basic Information
Many searchers simply want to know the name of the currency used in Japan, which is the yen. This is a straightforward informational query.
7.2 Travel Planning
Travelers planning a trip to Japan need to understand the local currency for budgeting and financial transactions.
7.3 Financial Transactions
Individuals might need to send or receive money to or from Japan and need to know the correct currency to use.
7.4 Cultural Understanding
Some searchers may be interested in the cultural and historical context of the Japanese yen, including its significance and usage.
7.5 Education and Research
Students or researchers may need this information for academic purposes, such as economic studies or comparative currency analysis.
8. Practical Tips for Managing Money in Japan
Effectively managing your finances while in Japan involves understanding exchange rates, budgeting, and using the most cost-effective payment methods.
8.1 Understanding Exchange Rates
Stay informed about the current exchange rates between your home currency and the Japanese yen.
- Use online currency converters like XE Currency Converter or Wise’s Currency Converter for up-to-date information.
- Monitor exchange rate trends to identify favorable times to exchange currency.
8.2 Budgeting for Your Trip
Create a detailed budget to manage your expenses effectively.
- Estimate daily costs for accommodation, food, transportation, and activities.
- Allocate extra funds for unexpected expenses.
8.3 Choosing the Right Payment Methods
Select the most cost-effective and convenient payment methods.
- Use credit cards for larger purchases, but be mindful of foreign transaction fees.
- Carry a Wise card to avoid foreign transaction fees and get competitive exchange rates.
- Use IC travel cards for efficient and easy transit payments.
8.4 Using ATMs Wisely
Withdraw cash from ATMs strategically.
- Japan Post and 7-Eleven ATMs are reliable options for foreign-issued cards.
- Be aware of potential withdrawal fees from your bank and the ATM provider.
8.5 Avoiding Unnecessary Fees
Minimize unnecessary fees to maximize your budget.
- Avoid exchanging currency at airports, where rates are typically less favorable.
- Be cautious of hidden fees when using currency exchange services.
8.6 Financial Planning Tips
| Tip | Description | Benefit |
|---|---|---|
| Stay Informed on Rates | Regularly check exchange rates using reliable online converters. | Helps you make informed decisions on when to exchange currency. |
| Detailed Budgeting | Plan your expenses by estimating daily costs for various categories. | Ensures you stay within your financial limits and avoid overspending. |
| Optimal Payment Methods | Use credit cards for larger purchases and IC cards for transit, while being mindful of fees. | Maximizes convenience and minimizes transaction costs. |
| Strategic ATM Use | Use Japan Post and 7-Eleven ATMs for reliable access, but be aware of potential fees. | Provides easy access to cash when needed while minimizing fees. |
| Avoid Unnecessary Fees | Exchange currency in Japan rather than at airports and be cautious of hidden fees at exchange services. | Maximizes your budget by avoiding unnecessary costs. |
9. Common Mistakes to Avoid When Handling Money in Japan
Navigating the financial landscape in Japan can be smoother by avoiding common mistakes that tourists and newcomers often make.
9.1 Relying Solely on Credit Cards
While credit cards are becoming more accepted, many smaller establishments still prefer cash.
- Always carry some cash as a backup to avoid being caught off guard.
- Research the acceptance of credit cards at your destinations in advance.
9.2 Not Having Small Denominations
Vending machines and smaller vendors may not accept large bills.
- Keep a supply of 1,000 yen notes and smaller coins for these situations.
- Use supermarkets and convenience stores with coin deposit kiosks to manage your change.
9.3 Exchanging Currency at the Airport
Airport exchange rates are typically less favorable.
- Exchange currency at banks or reputable money changers in major cities.
- Consider using a service like Wise for better rates and convenience.
9.4 Ignoring Transaction Fees
Foreign transaction fees can add up quickly.
- Use credit cards that waive foreign transaction fees.
- Consider using a Wise card for more transparent and competitive rates.
9.5 Tipping
Tipping is not customary and can be considered rude.
- Refrain from leaving tips at restaurants, taxis, or other service providers.
- If you wish to show appreciation, offer a small gift or souvenir instead.
9.6 Financial Mistake Avoidance Tips
| Mistake | Description | Avoidance Strategy |
|---|---|---|
| Sole Credit Card Reliance | Expecting all establishments to accept credit cards, which isn’t always the case. | Always carry cash as a backup; research payment options at destinations. |
| Lack of Small Denominations | Not having smaller bills and coins for vending machines and small vendors. | Keep 1,000 yen notes and smaller coins on hand; use coin deposit kiosks at supermarkets. |
| Airport Currency Exchange | Exchanging currency at the airport results in less favorable rates. | Exchange currency at banks or money changers in major cities; use services like Wise for better rates. |
| Ignoring Transaction Fees | Overlooking foreign transaction fees can significantly increase expenses. | Use credit cards with waived fees; consider using a Wise card for transparent rates. |
| Tipping Errors | Attempting to tip in situations where it’s not customary can be awkward or offensive. | Refrain from tipping; offer small gifts or souvenirs as a token of appreciation. |
10. Frequently Asked Questions (FAQ) About Money in Japan
Here are some frequently asked questions to help you better understand and manage money in Japan.
10.1 What is the currency of Japan?
The currency of Japan is the Japanese Yen (JPY), symbolized as ¥.
10.2 Where can I exchange money in Japan?
You can exchange money at banks, currency exchange services like Travelex, and some hotels. It’s generally better to do this in major cities rather than at airports for better rates.
10.3 Are credit cards widely accepted in Japan?
Credit cards are increasingly accepted, especially in urban areas and larger establishments. However, smaller businesses and rural areas often prefer cash.
10.4 Is tipping customary in Japan?
No, tipping is not customary in Japan and can sometimes be seen as rude.
10.5 What are IC travel cards and how do I use them?
IC travel cards like Suica and PASMO are used for easy payment on trains, buses, and at vending machines and stores. You can load them with money and tap them at payment terminals.
10.6 Can I use my foreign debit card at ATMs in Japan?
Yes, many ATMs, especially those at Japan Post offices and 7-Eleven stores, accept foreign debit cards.
10.7 Is it better to exchange money before I travel to Japan?
Generally, it’s better to exchange money in Japan, where you can often get better exchange rates and lower commissions.
10.8 What should I do if I run out of cash in Japan?
You can withdraw cash from ATMs that accept foreign cards or use a service like Wise to transfer funds to a local account.
10.9 Are there any digital payment apps I can use in Japan?
Yes, popular digital payment apps include PayPay, MerPay, and Rakuten Pay, but these often require a Japanese phone number and residency.
10.10 What is the consumption tax rate in Japan?
The standard consumption tax rate in Japan is 10%, but it is 8% for food and beverages meant for takeaway.
Understanding the financial system in Japan, including the use of the yen, payment methods, and local etiquette, can significantly enhance your experience, and money-central.com is here to provide continuous assistance. By grasping these essential aspects, you can confidently navigate daily transactions and enjoy all that Japan has to offer. Whether you’re planning a visit or managing your finances from afar, money-central.com is your go-to resource for reliable and comprehensive financial guidance. Check out our other articles, use our tools, and consult our experts to take control of your financial journey today.
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