Currency exchange, Japan travel guide.

When you’re planning a trip to the Land of the Rising Sun, figuring out your spending strategy is just as important as booking your Shinkansen tickets. In a high-tech metropolis like Tokyo, you might be surprised to find a mix of payment worlds—from cash-only ramen bars and old-school ticket machines to contactless payments at convenience stores.

This guide walks you through exactly when to exchange your yen, which ATM fees to watch out for, and how to navigate the “Suica shortage” so you’re not left fumbling for coins at the station. For a smoother journey, you can also check out Volarsky’s eSIM plans to ensure you have the high-speed connection needed to top up your travel cards and check exchange rates on the go.

Japan’s mobile payment landscape is fragmented, and what works at home might not work here.

Exchange Strategy—Before You Go vs. Upon Arrival

“Should I exchange money before I leave?” is the #1 question. The answer is a hybrid strategy.

The Smart Timeline

1. Before Flying (Home): Exchange a small amount (¥20,000 – ¥30,000) at your local bank.
   • Purpose: You need this for the initial train ride, buying an IC card at the airport, or emergencies if airport systems are down.
2. In Japan (The Best Rates): Withdraw cash from ATMs.
   • Where: 7-Eleven (Seven Bank), Lawson, or FamilyMart.
   • Why: They operate 24/7, have English interfaces, and offer fair market rates compared to airport kiosks.
   • Pro Tip for Westerners: Use travel cards like Wise, Revolut, or Charles Schwab. These cards save you huge amounts on foreign transaction fees.
   • Avoid: Airport Currency Exchange Counters (often “tourist traps” with hidden fees).

The IC Card Crisis (Suica & Pasmo)

Due to a global semiconductor shortage, buying a physical Suica or Pasmo card in Tokyo is currently very difficult.

Solutions for Travelers

• iPhone Users (Best Option): Add a Suica directly to your Apple Wallet. Top up instantly using Mastercard or Amex. This is the true “Apple Pay” of Japan.
• The “Osaka Hack”: If you land in Osaka (Kansai Airport), you can buy a physical ICOCA card. It works perfectly in Tokyo trains and convenience stores.
• The Tourist Card: Look for the red “Welcome Suica” at Haneda/Narita airports. It requires no deposit but expires in 28 days.

Mobile Payments—East vs. West

Japan’s mobile payment landscape is fragmented, and what works at home might not work here.

For Western Travelers (NFC & Apple Pay)

• The Issue: Japan uses a unique NFC standard called FeliCa. Your foreign credit card’s “contactless” feature works in big chains (7-Eleven, McDonald’s) but fails in older shops.
• The Fix: Don’t rely solely on tapping your Visa/Mastercard. Use your Mobile Suica on your phone instead—it’s faster and accepted everywhere.

For Asian Travelers (Alipay+ Integration)

Japan’s PayPay QR codes are now compatible with the Alipay+ network.

• Apps: Alipay (China), KakaoPay (Korea), GCash, TrueMoney, etc.
• Usage: Simply scan the PayPay merchant code with your home app. It often provides better exchange rates than cash.

Payment Scenarios & DCC Trap

Japan has a split personality: high-tech in some places, analog in others. Here is how to pay for everything.

The DCC Trap (Crucial Warning)

When paying with a credit card at department stores or hotels, the machine might ask: “Pay in JPY or [Your Home Currency]?”

• ALWAYS SELECT JPY.
• Why: Selecting your home currency triggers Dynamic Currency Conversion (DCC), where the merchant sets a terrible exchange rate, costing you an extra 5-10%.

Scenario Breakdown

Summary: Pros & Cons of Each Method

• Cash (Yen): Essential for rural areas and old shops, but heavy to carry (coins).
• IC Card (Suica): The ultimate convenience for travel, but hard to get physical cards.
• Credit Cards: Great for points and large purchases, but watch out for DCC fees.