I recently had the chance to play tour guide for some visiting family, which meant seeing Japan through a tourist’s eyes for the first time in years. And let me tell you—I was genuinely surprised by how often cash was still needed, even now in 2025! As someone who’s lived in Japan for over a decade, I’ve gotten used to a fairly cashless routine. I use my Icoca, PayPay, or credit card for pretty much everything and rarely carry a lot of cash unless I know I’ll be in a specific situation that still calls for it. But during this trip, I was reminded that cash is still very much a part of life here—not just for tourists, but for residents too.

Japan is famous for its blend of tradition and technology—bullet trains, robot restaurants, vending machines that practically read your mind—but the payment system isn’t quite as futuristic across the board. While digital payments have become way more common in recent years, there are still plenty of places where cash is your only option.

Here are some everyday moments—whether you’re living here or just visiting—when you’ll still want some yen in your wallet:

Small, Local Restaurants – Those cozy, family-run spots or hole-in-the-wall ramen joints? Still likely to be cash-only. Some even use old-school ticket vending machines that only take coins or bills with no staff to check you out. Especially outside major cities like Tokyo or Osaka, many places simply don’t accept cards. Always check for payment stickers near the door or ask: 「〇〇使えますか？」 (Can I use [payment method]?).

Street Food & Festivals – Festival snacks like takoyaki or taiyaki are usually cash-only. Street vendors work with small margins and usually don’t bother with digital payment systems. Plus, there’s something nostalgic about handing over a handful of coins under festival lights.

Shrines and Temples – Whether it’s an entrance fee, buying a lucky charm, drawing a fortune slip, or tossing a coin into the offering box, cash—especially small coins—is essential when visiting spiritual spots.

Taxis – In major cities like Tokyo, Osaka and Sapporo, taxis increasingly accept IC cards, credit cards, or you can even call a Taxi via Uber. But in smaller towns or late at night, you might find yourself in a cash-only ride. Check for stickers on the side of the taxi or ask the driver: 「カード使えますか？」Kado wo tsukaemasuka (Can I use a card?).

Clinics and Dental Offices – Japan’s healthcare is fantastic, but many smaller clinics and dentists still only take cash. Larger hospitals often take cards, and pharmacies usually do, too. In my experience, about half of the clinics I go to only take cash, but pharmacies usually take card or digital payments, so it’s best to bring your insurance card (or My Number card) and around ¥10,000 in cash just in case.

Bills and Fees – Some landlords and real estate agencies still require rent or move-in fees in cash or via bank transfer. Smaller utility companies or local taxes may only be payable with cash or bank transfer as well. In Osaka, I can handle most things digitally, but national health insurance still isn’t credit card-friendly. Fun fact: even PayPay doesn’t work unless your account was topped up with cash or bank transfer.

Coin-Operated Everything – Japan still loves its coins! You’ll run into coin-operated laundromats, capsule toy machines (gachapon), public lockers, onsen showers, and some older vending machines that haven’t made the leap to digital.

So, what’s the takeaway?

Japan’s definitely catching up when it comes to going cashless, especially after COVID sped up the transition. But it’s not 100% there yet—and probably won’t be for a while. Thankfully, convenience store ATMs (like at 7-Eleven, Lawson, or FamilyMart) are everywhere and tourist-card friendly.

My advice? Always keep a little bit of cash on you, just in case:

• A few ¥1,000 bills
• Plenty of ¥100 and ¥500 coins
• Emergency backup cash

Even in 2025, Japan remains a beautiful balance of old and new—and that includes how you pay. So yes, tap your Suica or Icoca or any IC card where you can, but maybe keep that cute coin purse in your bag too. You never know when you’ll need it!