Japan is one of the world’s most advanced economies, yet when it comes to money, cash still plays a surprisingly big role. While credit cards and mobile payments are becoming more common, many local restaurants, ryokan (traditional inns), and small shops still prefer yen in hand. That’s why understanding currency exchange in Japan is crucial for travelers who want to avoid high fees, poor rates, or awkward payment moments.
This comprehensive guide covers everything you need to know—where to exchange money, how to get the best rates, and smart tips for using cash and cards safely during your trip.
Understanding Currency Basics in Japan
Japanese Yen (JPY)
The official currency of Japan is the Japanese yen (¥ or JPY). It’s available in both coins and bills, and denominations are quite simple:
- Coins: ¥1, ¥5, ¥10, ¥50, ¥100, ¥500
- Bills: ¥1,000, ¥5,000, ¥10,000
💡 Tip: The ¥1,000 bill is the most commonly used for everyday purchases like convenience store snacks or train tickets.
Currency Symbols and Exchange Rate
- The yen symbol (¥) is often written before the amount, e.g., ¥1,000.
- Exchange rates fluctuate daily. As of recent averages, ¥100 ≈ $0.65 USD (always check current rates before traveling).
You can monitor real-time rates using apps like:
- XE Currency Converter
- OANDA
- Google’s currency conversion tool
How Much Cash to Carry
Although Japan is safe and theft is rare, carrying some cash is practical.
- For short trips: ¥20,000–¥30,000 (around $130–$200 USD) is usually enough.
- For rural or onsen trips: Bring extra cash, as many countryside inns don’t accept cards.
Where to Exchange Money in Japan
You’ll find several convenient options for currency exchange in Japan, each with pros and cons. Let’s explore the main ones.
1. Banks and Major Financial Institutions
Banks are reliable for exchanging large amounts but tend to have limited hours.
Pros:
- Trustworthy and secure.
- Official rates, no hidden fees.
Cons:
- Only open during weekdays (typically 9 AM–3 PM).
- Slower process—expect to fill out forms and show your passport.
Recommended Banks:
- MUFG Bank
- Mizuho Bank
- SMBC (Sumitomo Mitsui Banking Corporation)
💡 Tip: Exchange at major city branches, not small-town offices, for better English support.
2. Currency Exchange Counters and Kiosks
Airports, major train stations, and shopping districts all have currency exchange counters (ryōgaejo).
Popular Options:
- Travelex (found at Narita, Haneda, and Kansai airports).
- World Currency Shop (affiliated with banks).
- Sakura Exchange (locations across Tokyo and Osaka).
Pros:
- Convenient locations, open daily.
- Clear signage and exchange rate displays.
Cons:
- Airport rates are usually lower than city rates.
- Some kiosks have service fees (check the small print).
💡 Tip: Exchange just a small amount at the airport for transport, then find a city kiosk with better rates.
3. ATMs (Cash Withdrawal)
This is often the easiest and most cost-effective way to get yen. Most ATMs in Japan accept foreign debit or credit cards, especially those operated by:
- 7-Eleven ATMs (available 24/7 nationwide)
- Japan Post Bank ATMs
- Lawson Bank ATMs
- Aeon Bank ATMs
Pros:
- Convenient and available almost everywhere.
- Usually better exchange rates than airport counters.
Cons:
- Your home bank may charge an international transaction or ATM fee.
- Some ATMs have withdrawal limits (e.g., ¥50,000 per transaction).
💡 Pro Tip: Use debit cards linked to low-fee accounts like Wise, Revolut, or Charles Schwab to minimize extra charges.
4. Hotels and Department Stores
- Many luxury hotels and large department stores (like Takashimaya or Mitsukoshi) offer exchange services for guests.
- Convenient if you’re staying in central Tokyo or Osaka.
Downside: Rates are usually slightly worse than at banks or ATMs.
5. Currency Exchange Machines
Automated exchange machines are popping up in tourist areas. They’re user-friendly and available 24/7.
How They Work:
- Insert foreign currency bills.
- The machine calculates the yen equivalent.
- Confirm the amount and receive yen.
Where to Find Them:
- Shibuya Station, Akihabara, Kyoto Station, and airports.
6. Exchange Before Traveling
If your home country offers good exchange rates, consider getting some yen before departure.
- Ideal for travelers who want to avoid airport stress.
- However, Japanese ATMs usually offer better rates once in Japan.
Best Practices for Saving on Exchange Fees
Currency exchange rates and fees vary significantly depending on the method you use. Here’s how to make your yen go further.
1. Avoid Airport Counters (for Large Exchanges)
- Exchange only enough for transportation (around ¥10,000–¥15,000).
- Once in the city, compare rates at banks or currency kiosks.
2. Use International-Friendly Cards
Cards from these banks and services often waive foreign transaction fees:
- Wise (formerly TransferWise)
- Revolut
- Charles Schwab Debit Card
- Capital One 360 Checking
💡 Tip: Use your card for larger purchases, and withdraw cash only when needed.
3. Withdraw Larger Amounts at Once
Each withdrawal usually incurs a fixed international fee. Taking out ¥30,000–¥50,000 in one go reduces the per-yen cost.
4. Avoid Dynamic Currency Conversion
When paying by card, you might be asked:
“Would you like to pay in your home currency?”
Always choose “Pay in Japanese yen.”
Paying in your home currency adds a poor exchange rate and extra fees.
5. Compare Exchange Rates
Use live rate-checking tools before exchanging:
- XE Currency App
- Google Search (“USD to JPY”)
- OANDA Currency Converter
💡 Tip: Rates fluctuate daily, so monitor trends if you’re exchanging large sums.
6. Consider Prepaid Travel Cards
Prepaid cards like Wise, Revolut, or ANA Travel Card let you:
- Load multiple currencies before departure.
- Lock in rates.
- Withdraw cash directly from ATMs.
These are safer than carrying large amounts of cash and often cheaper than using a traditional bank card.
Cash vs. Card Usage in Japan
Despite being a tech-savvy country, Japan’s payment culture still heavily relies on cash. Understanding when to use cash or card can save both time and frustration.
When Cash is Preferred
- Small Restaurants and Izakayas: Many local eateries don’t accept cards.
- Temples and Shrines: Donation boxes and entry fees often require coins or small bills.
- Rural Areas: Cash remains king outside big cities.
- Vending Machines and Coin Lockers: Still primarily cash-operated, though IC cards are expanding.
💡 Tip: Keep plenty of ¥100 and ¥10 coins handy—they’re essential for daily life.
When Cards Are Accepted
- Hotels, Department Stores, and Chain Restaurants: Visa, MasterCard, and JCB widely accepted.
- Train Stations: Suica and Pasmo cards can be topped up via credit card.
- Tourist Attractions: Increasingly accept cards, especially in Tokyo, Osaka, and Kyoto.
IC Cards for Convenience
Japan’s rechargeable IC cards (like Suica, Pasmo, and Icoca) are game changers.
- Can be used for trains, buses, convenience stores, and even vending machines.
- Load them with cash or link to mobile wallets like Apple Pay.
Mobile Payments
Services like PayPay, LINE Pay, and Rakuten Pay are popular among locals but not always accessible for foreign travelers without a Japanese phone number or bank account.
Safety Tips for Handling Money in Japan
Japan is one of the safest countries in the world, but smart money habits still matter—especially when carrying cash.
1. Use a Money Belt or Hidden Pouch
Keep large sums secure and separate from your wallet.
2. Store Cash in Multiple Places
- Keep a small amount in your wallet for daily use.
- Store the rest in your luggage or hotel safe.
3. Keep Receipts from Exchanges
Exchange receipts may be required to reconvert leftover yen at the airport.
4. Stay Aware in Crowded Areas
Pickpocketing is rare but possible in busy stations or festivals.
5. Check Bills Before Leaving the Counter
Japanese yen bills look similar in color—double-check denominations to avoid confusion.
6. Plan for Emergencies
Keep an emergency fund of around ¥10,000 in cash for unexpected situations (power outages, lost cards, etc.).
Example Scenarios for Travelers
Here are practical examples to illustrate how to manage currency exchange in Japan effectively.
Example 1: The Budget Traveler
- Exchanges $100 USD at the airport for transport (gets ~¥14,000).
- Uses a Wise debit card for withdrawals at 7-Eleven ATMs as needed.
- Pays for hotels and JR Pass with a credit card.
Result: Saves on fees and avoids carrying too much cash.
Example 2: The Family Traveler
- Withdraws ¥50,000 (~$330 USD) at a Japan Post ATM for convenience.
- Uses cash for meals and sightseeing.
- Keeps emergency yen at the hotel.
Result: Easy budgeting and fewer transaction worries.
Example 3: The Luxury Traveler
- Exchanges currency at an airport VIP counter for convenience.
- Uses premium travel cards (like Amex Platinum) for hotel stays.
- Keeps a small amount of yen for tipping and temple visits.
Result: Smooth experience with minimal cash handling.
Conclusion
Mastering currency exchange in Japan is one of the easiest ways to make your trip stress-free and budget-friendly. With a bit of preparation—knowing where to exchange, how to minimize fees, and when to use cash versus cards—you’ll be ready to explore Japan confidently.
Here’s a quick summary:
- Exchange small amounts at airports, then use ATMs or city kiosks for better rates.
- Carry some cash—Japan still values the tactile nature of yen.
- Use digital tools and low-fee cards to save money.
- Always choose “Pay in Yen” when using foreign cards to avoid conversion markups.
Japan’s blend of modern efficiency and traditional hospitality extends to its money system too. Once you understand how to handle yen, you’ll feel right at home—whether you’re buying sushi in Tokyo, souvenirs in Kyoto, or ramen in Fukuoka.
👉 : Compare current yen exchange rates here
👉 : Book travel cards with no foreign fees
👉 : Find the best ATMs for international travelers in Japan