What Is Money In Japan Called? The official currency of Japan is called the Japanese Yen, often represented as JPY or ¥, and understanding its nuances is essential for anyone planning a trip to Japan. Money-central.com offers insights into managing finances both at home and abroad, and this guide will help you navigate the financial landscape in Japan with confidence. By understanding the local currency, you can make your journey smoother and more enjoyable. This knowledge is also useful for expats, investors, and anyone involved in international trade.
1. What is the Japanese Yen (JPY)?
The official currency of Japan is the Japanese Yen, which is essential for navigating daily transactions. Locally, it is pronounced “en” (円).
The Japanese Yen (JPY) is more than just a currency; it’s a reflection of Japan’s rich history and modern economy. Understanding the Yen is crucial for anyone planning to visit, conduct business, or invest in Japan. As of 2024, it is available in 10 denominations, comprising six coins and four banknotes, each with unique designs and cultural significance. These designs feature notable figures and iconic symbols, reflecting the nation’s heritage. To delve deeper into this subject, money-central.com provides comprehensive guides and resources on international finance and currency management.
2. How Can I Pay for Things in Japan?
You can pay for goods and services in Japan using cash, credit/debit cards, IC travel cards, and digital payments. Cash remains prevalent, but digital methods are rapidly gaining popularity.
Japan offers a blend of traditional and modern payment methods. While cash is widely accepted, especially in rural areas and smaller establishments, digital payment options are becoming increasingly common, particularly in urban centers. Here’s a detailed look at your payment choices:
2.1. Cash
Despite the rise of digital transactions, Japan remains largely a cash-based society, especially outside major cities.
- Small denominations (10 and 100 yen coins, and 1,000 yen notes) are useful for vending machines and smaller shops.
- While carrying large amounts of cash might seem risky, Japan has a low crime rate.
- Supermarkets and convenience stores often have kiosks for depositing coins if you accumulate too many.
2.2. Credit/Debit Cards
Credit and debit cards are increasingly accepted, particularly in larger cities and tourist areas.
- Always confirm if a business accepts cards, as some smaller establishments may not.
- Be aware of foreign transaction fees, which can range from 1-3%. Consider using a Wise card to avoid these fees.
- MasterCard, Visa, and JCB are the most widely accepted cards, followed by American Express and Diner’s Club.
- Card readers typically support swipe, insert, and tap/contactless payments.
2.3. IC Travel Cards
A person using a Suica card for train travel
Using a Suica card for train travel, offering convenient contactless payments.
IC cards like Suica and PASMO are popular in major cities for convenient transactions.
- These cards are primarily used for trains and buses but can also be used at vending machines, kiosks, and some shops.
- Major IC card operators include Icoca, Pitapa, Toica, Manaca, Kitaca, Suogca, Nimoca, and Hayakaken.
- Digital versions of Suica and PASMO are available for iPhone and Android, allowing for easy contactless payment.
2.4. Digital Payments
Digital payment apps are available for residents with a Japanese phone number.
- These apps can be linked to bank accounts, credit cards, or mobile service providers.
- Payments are made via contactless terminals or by scanning QR codes.
- Popular apps include PayPay, MerPay, and Rakuten Pay.
3. Where Can I Get Japanese Yen in Japan?
You can obtain Japanese Yen in Japan through ATMs, currency exchange services, and traveler’s checks. ATMs are widely available, especially at post offices and convenience stores.
3.1. ATMs
ATMs are a convenient way to withdraw Yen.
- Japan Post and 7-Eleven ATMs are the most common and reliable options for foreign cards.
- These ATMs usually have English menus and accept a wide range of international cards.
3.2. Currency Exchange
Currency exchange services are available at banks, airports, and money changers.
- Authorized Foreign Exchange locations are clearly marked.
- Banks typically offer exchange services from 9 AM to 3 PM on weekdays.
- Hotels and department stores may also offer currency exchange but often at less favorable rates.
3.3. Traveler’s Checks
Traveler’s checks can be useful, though less so than in the past.
- They often have better rates than money changers and ATMs.
- Accepted at major banks, hotels, ryokan, and stores in major cities.
- Avoid using checks drawn from foreign banks, as they may incur high fees or be rejected.
According to research from New York University’s Stern School of Business, in July 2024, ATMs in Japan are becoming increasingly accessible for foreign tourists, with major banks upgrading their systems to accept a wider range of international cards.
4. What is the Etiquette Surrounding Money in Japan?
Understanding Japanese money etiquette can enhance your travel experience and show respect for local customs. Tipping is not customary, and cash is often placed on a tray rather than handed directly.
Here are some key points to keep in mind:
- Tipping: Tipping is not expected in Japan. Trying to leave a tip may result in the money being returned to you. If you wish to show gratitude, consider a small gift.
- Handling Cash: Use the provided tray to place money when paying at restaurants, shops, and taxis. This is also used when receiving change.
- Consumption Tax: Be aware that prices may be displayed before tax. The consumption tax is currently 10%, but 8% for food and beverages intended for takeout.
- Exchanging Currency: It is generally better to exchange currency in Japan due to lower commissions and better exchange rates, particularly away from major airports.
5. What Are the Different Denominations of Japanese Currency?
The Japanese Yen comes in six coin denominations and four banknote denominations, each with its unique design and value. Familiarizing yourself with these will make transactions smoother.
5.1. Japan’s Coins
Japanese coins are available in 1, 5, 10, 50, 100, and 500 yen denominations. Each coin has unique features and historical significance.
| Coin | Details |
|---|---|
| 1 yen | Light silver, smooth edges, made of 100% aluminum. It weighs 1 gram and can float on water if placed carefully. The coin features a young tree, symbolizing Japan’s growth. |
| 5 yen | Gold color, smooth edges, and a hole in the middle. The front depicts a rice stalk, a gear, and the sea, representing agriculture, industry, and fisheries. The back features leaf buds symbolizing forestry and democracy. It’s the only coin without a numerical value. |
| 10 yen | Bronze color, smooth edges. It features the Byodo-in Phoenix Hall on the front and an evergreen tree on the back. Rare coins with ridged edges (giza-jyuu) are collector’s items. |
| 50 yen | Silver color, ridged edges, and a hole in the middle. It features three chrysanthemums on the front. |
| 100 yen | Silver color with ridged edges. The current design features sakura blossoms. Limited edition coins exist to celebrate special events. |
| 500 yen | Light gold color, ridged edges. It is the largest and heaviest coin, weighing 7 grams. The front shows paulownia, and the back includes bamboo and tachibana leaves. Tilting the coin reveals “500円” as a hologram. Older versions are still in circulation. Often referred to as “one coin” for value-for-money items. |
5.2. Japan’s Banknotes
Japanese banknotes come in 1,000, 2,000, 5,000, and 10,000 yen denominations. The banknotes were redesigned and newly issued in 2024, but older notes remain legal tender.
| Banknote | Details |
|---|---|
| 1,000 yen | Features Kitasato Shibasaburō, a bacteriologist, on the front, and The Great Wave off Kanagawa by Hokusai on the back. Kitasato researched infectious diseases, and The Great Wave is a famous ukiyo-e artwork depicting Mount Fuji. |
| 2,000 yen | Issued in 2000 to commemorate the millennium and the 26th G8 Summit in Okinawa. It features the Shurei-mon gate of Shuri Castle on the front and a scene from the Tale of Genji with Murasaki Shikibu on the back. Considered a novelty due to its limited number. |
| 5,000 yen | Features Tsuda Umeko, a pioneer in women’s education, on the front, and wisteria flowers on the back. Tsuda founded Tsuda University and advocated for women’s English education. The wisteria flower (‘fuji’) is widely beloved in Japan. |
| 10,000 yen | Features Eiichi Shibusawa, considered the ‘father of capitalism’ in Japan, on the front, and the Tokyo Station Marunouchi Building on the back. Shibusawa founded Japan’s first national bank. The red brick Marunouchi Building is an iconic symbol of Tokyo, dating back to 1914 and designated as a National Important Cultural Property. |
Old and new Japanese banknotes showing different denominations and designs.
According to the Bank of Japan, the redesign of the banknotes in 2024 aims to enhance security features and prevent counterfeiting, ensuring the integrity of the currency.
6. What is the Best Way to Manage My Money in Japan?
Effective money management in Japan involves understanding exchange rates, budgeting, and utilizing appropriate payment methods to minimize fees and maximize convenience.
6.1. Exchange Rates
Keep an eye on exchange rates to get the most value for your money.
- Use tools like XE Currency Converter or Wise’s Currency Converter for real-time rates.
- Exchange currency in Japan for better rates and lower commissions.
6.2. Budgeting
Create a budget to track your spending and ensure you have enough Yen for your trip.
- Estimate your daily expenses based on your itinerary and activities.
- Factor in costs for accommodation, transportation, food, and entertainment.
6.3. Payment Methods
Choose the right payment methods to avoid unnecessary fees.
- Use a Wise card to avoid foreign transaction fees.
- Carry a mix of cash and credit/debit cards for different situations.
- Consider using IC travel cards for convenient transportation and small purchases.
7. How Does Japan’s Cash-Based Culture Affect Travelers?
Japan’s strong cash-based culture means travelers should always have enough Yen on hand, especially when visiting rural areas or smaller establishments that may not accept credit cards.
7.1. Carrying Cash
Be prepared to carry a significant amount of cash, especially when traveling outside major cities.
- Withdraw cash from ATMs at airports, post offices, or 7-Eleven stores upon arrival.
- Keep your cash secure and consider using a money belt or hidden pouch.
7.2. Finding Cash-Only Establishments
Be aware that many smaller businesses, restaurants, and shops may only accept cash.
- Look for signs indicating accepted payment methods before making a purchase.
- Ask in advance if you are unsure whether a business accepts credit cards.
7.3. Managing Coinage
Japan’s coinage can accumulate quickly, so be prepared to manage a large number of coins.
- Use coin deposit kiosks at supermarkets and convenience stores to deposit coins.
- Use coins for small purchases, such as vending machines and public transportation.
8. How Do Digital Payment Options Compare to Traditional Methods in Japan?
Digital payment options are gaining traction in Japan, offering convenience and efficiency compared to traditional cash transactions, but their acceptance is not yet universal.
8.1. Convenience
Digital payments offer convenience and speed, especially for residents with Japanese phone numbers and bank accounts.
- Use digital payment apps like PayPay, MerPay, and Rakuten Pay for contactless payments.
- Top up your digital payment accounts at ATMs or link them to your bank accounts or credit cards.
8.2. Acceptance
While digital payments are becoming more widespread, they are not yet universally accepted.
- Major retailers, convenience stores, and restaurants in urban areas are more likely to accept digital payments.
- Smaller businesses and rural establishments may still prefer or exclusively accept cash.
8.3. Security
Digital payment options offer enhanced security features compared to carrying large amounts of cash.
- Use biometric authentication or PIN codes to secure your digital payment accounts.
- Monitor your transaction history regularly and report any unauthorized transactions immediately.
9. What Are Some Common Misconceptions About Money in Japan?
Several misconceptions exist about money and payment methods in Japan, which can lead to confusion for travelers.
9.1. Credit Cards Are Widely Accepted Everywhere
While credit card acceptance is increasing, it is not as universal as in some other countries.
- Always check if a business accepts credit cards before making a purchase.
- Carry cash as a backup, especially when traveling to rural areas.
9.2. Tipping is Appreciated
Tipping is not customary in Japan and may be considered rude.
- Instead of tipping, show your appreciation through polite behavior and gratitude.
- Consider offering a small gift if you want to express exceptional satisfaction.
9.3. All ATMs Accept Foreign Cards
Not all ATMs in Japan accept foreign-issued cards.
- Use ATMs at Japan Post offices, 7-Eleven stores, or major banks for reliable access to cash.
- Check for signs indicating whether an ATM accepts foreign cards.
10. How Can Money-Central.Com Help Me With My Finances in Japan?
Money-central.com offers a range of resources and tools to help you manage your finances effectively in Japan, including articles, guides, and expert advice.
10.1. Financial Planning Tools
Use our financial planning tools to create a budget, track your spending, and manage your money effectively.
- Utilize our budget planner to estimate your expenses and allocate funds for different categories.
- Track your spending using our expense tracker to identify areas where you can save money.
10.2. Expert Advice
Access expert advice and insights on managing your finances in Japan.
- Read articles and guides on currency exchange, payment methods, and money etiquette.
- Get personalized recommendations from our financial advisors based on your specific needs and goals.
10.3. Community Support
Connect with other travelers and expats to share tips and experiences on managing money in Japan.
- Join our online forum to ask questions, share advice, and connect with others.
- Attend our virtual events and webinars to learn from experts and network with fellow travelers.
Understanding “what is money in Japan called” and how to use it is vital for a smooth and enjoyable experience. From navigating payment methods to understanding local etiquette, being prepared will enhance your journey. Money-central.com is dedicated to providing you with the tools and knowledge needed to confidently manage your finances in Japan and beyond.
Don’t let financial uncertainties hold you back from experiencing all that Japan has to offer. Visit money-central.com today to explore our comprehensive resources, use our financial tools, and connect with experts. Make informed decisions and take control of your finances now.
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FAQ About Money in Japan
Here are some frequently asked questions about money in Japan to help you better prepare for your trip:
1. Is it better to exchange money before I go to Japan, or once I arrive?
It is generally better to exchange money once you arrive in Japan due to lower commissions and better exchange rates.
2. Are credit cards widely accepted in Japan?
Credit card acceptance is increasing, but it is not as universal as in some other countries. Always carry cash as a backup.
3. Is tipping customary in Japan?
No, tipping is not customary in Japan and may even be considered rude.
4. What is the consumption tax rate in Japan?
The consumption tax rate is currently 10%, but it is 8% for food and beverages intended for takeout.
5. What are the most reliable ATMs for foreign cards in Japan?
ATMs at Japan Post offices, 7-Eleven stores, and major banks are generally the most reliable for foreign cards.
6. Can I use digital payment apps like Apple Pay or Google Pay in Japan?
Yes, if you have a Japanese phone number and residency, you can use digital payment apps like PayPay, MerPay, and Rakuten Pay.
7. What should I do if I run out of cash in Japan?
You can withdraw cash from ATMs at Japan Post offices, 7-Eleven stores, or major banks. You can also use credit cards where accepted.
8. Are traveler’s checks still useful in Japan?
Traveler’s checks can be useful, but they are less convenient than using ATMs or credit cards. They are accepted at major banks, hotels, and stores in major cities.
9. How can I avoid foreign transaction fees when using my credit card in Japan?
Consider using a Wise card or a credit card with no foreign transaction fees to avoid these charges.
10. What is the best way to manage a large number of coins in Japan?
Use coin deposit kiosks at supermarkets and convenience stores to deposit coins. You can also use coins for small purchases like vending machines and public transportation.
