Japan continues to stand out among wealthy nations for its enduring preference for physical cash. While contactless IC cards like Suica and Pasmo have become standard for public transport and convenience store purchases, a majority of everyday transactions outside these specific use cases are still settled in cash.
Analysts point to several cultural and structural factors: a historically low crime rate that makes carrying cash low-risk, an aging population less inclined to adopt new payment technology, and deep public trust in the physical yen itself. Japanese consumers have also expressed consistent preference for the privacy that cash transactions offer compared to traceable digital payments.
The Japanese government has set targets to increase the cashless payment ratio in past years, with measurable but gradual progress. For visitors, the practical guidance remains unchanged: always carry cash as a backup, even in Tokyo.