Although Japan is known as a technologically advanced country, the paradox is that cash still plays an important role in people's lives here. Japanese people value privacy and prefer to pay by cash to avoid leaving a personal spending trail. Using cards or electronic payment apps can reveal financial information and shopping habits that they do not want to share.
Compared to other countries, Japan's card payment system is developing slowly. Many small stores, especially in rural areas, are still not equipped with POS machines to accept cards.
Vending machines are an integral part of Japanese culture.
Credit cards are easy to pay for in Tokyo's bustling shopping districts like Omotesando and Ginza. However, cash is still the main method of payment in many other places. Izakaya (traditional bars), ryokan (traditional inns) and Shinto shrines often only accept cash. Even though card payments are common in big cities like Tokyo and Osaka, visitors should still carry yen when visiting other areas.
Japan recently issued new banknotes for the first time in 20 years, largely to combat counterfeiting. But the move has created a dilemma: the new notes may not be widely accepted.
Japan recently issued a new currency to combat counterfeiting.
The Bank of Japan said that while cashless payments are growing in popularity, it predicted that "demand for cash, which can be used easily by anyone, anywhere and at any time, is likely to continue to play an important role as a means of payment".
The problem is that Japan’s aging machinery is not designed to recognize the new notes. These devices, including vending machines, ticket machines, and other devices, need to be upgraded. According to the Japan Vending Machine Manufacturers Association, nearly 80% of vending machines nationwide need to be upgraded to accept the new notes.
The contradiction between the old machines and the new banknotes causes many disadvantages.
Most vending machines in Japan are old models and have not been updated to accept new banknotes. People have difficulty paying for purchases at vending machines, especially in areas far from the city center.
Japan's new banknotes incorporate high-tech anti-counterfeiting features, including a 3D portrait that rotates when tilted. This leaves older vending machines without the proper technology to authenticate the new notes. It will take time and money to adapt the millions of vending machines in Japan to handle the new notes, Business Insider said.
People hope the government will soon fix this situation so that it does not affect their daily lives too much.
Local tour guides often encourage visitors to bring cash for convenience in using vending machines.
Since the start of the year, international tourists have flocked to Japan due to the weak yen, which fell to its lowest level in 38 years against the dollar in the first week of July.
