Why Japan Still Uses Cash

Despite being one of the most technologically advanced countries in the world, Japan still relies heavily on cash — but why? In this video, we explore the cultural, economic, and historical reasons behind Japan’s deep-rooted preference for paper money. From low crime rates and trust in physical currency to the challenges of adopting digital payments in a society that values privacy and tradition, discover the story behind Japan’s cash culture.

[artbanks]

A better question is why everyone is going cashless? 🤔

[davidarroyo]

Japan has it right, keeps transactions private and keeps over spending down

[Richmon]

One thing you failed to mention is before credit cards, the American public depended on using checks for accepting your payCHECK, paying bills, and shopping. Japan never adopted using checks.

[Neko-san]

This is good for privacy. Nobody knows what's being bought with your money besides the seller. Also, you make sure the money is yours, not just some random numbers in a bank account.

[Nefus]

cash = no big banks or govt watching you

[ventusth]

As an MBA, I say cash is better because money is form of a promise to compensate for the product or service. Paying with cash is immediately fulfilling the promise without the electronic barrier.

[mr.ashuda]

Cash, because no banks can leech out YOUR own money when you make a transaction, because no government can deduct taxes directly when you use your OWN money.

[jimmypark]

Maybe some Japanese realize that using cash means a rejection of allowing banks and financial institutions to profit from EVERY transaction to the tune of billions of dollars a year. These companies are not in the business of replacing cash for the convenience to customers. They're doing it to make money off of you in the form of increased costs to businesses which are then passed on to consumers.

[WhatWhoWhere]

I go to Japan at least once a year. One of the reasons I love to go to Japan is …they are STILL using CASH. I don’t like my bank to know what, where I spend my money, and I don’t have to pay credit card fees (no credit card debt).

During my last trip, I noticed there were stores that were selling and buying gold and silver bullions. Another big plus.

[hbaldinr]

Card is ultra convenient, but cash is just beautiful

[womp]

Why should Japanese businesses give money to a foreign company for every transaction? I think Japanese are quite conscious of how ridiculous that is.

[QXDJfn]

Cash is good, cash should stay. Iceland is like 99% cashless, Spain over the last few years has also majorly developed in terms of cashless transactions.

[sun-groupecommunications]

cash is as simple as it is, no need to think on a mobile phone and set apps, it is instant !

[do]

In Japan, the fees paid by stores for credit card transactions are generally 3% to 5%, which is slightly higher than the average fees (1.5% to 2.5%) in Europe and the United States (e.g., the U.S.). This commission is a significant burden for stores, and as a result may be passed on to the price (selling price) of goods and services.
They believe that it is also in the consumer's best interest to induce them to transact in cash rather than pay the fee.
Cash as a Disaster-Resistant Means of Payment
Japan is a country prone to natural disasters such as earthquakes and typhoons. During disasters, electronic payment systems may become unusable due to power outages or communication problems. In such emergencies, cash works reliably without the need for electricity or Internet connection, giving people a sense of security and a reason to prefer cash.

[Kuzaus]

One more thing to add.
Japanese are encouraged to always have some cash, due to earthquakes and other disasters.
When the electricity goes out, cash is the only way to buy things.

Yes, people come and help for free. But we still try to save ourselves.
If we can, we will buy our food and water. We will pay for what we can, because everyone needs help.
If paying for our stuff can save someone with nothing, I believe it's worth it.

[daniellewis]

Operating by cash is key to your security and privacy as a human being.

[from.memories]

As someone living in Japan, the only places I use cash are my local dry cleaner, and the occasional ramen shop. Even then most are slowly changing to cashless payment options.

Japan has a lot of options for cashless payments at most places, the more local or family run places sometimes haven’t made the transition yet but otherwise it’s not really an issue.

[robgillon]

I live in a small town in Japan and I rarely use cash. I also run a business and 90% of my customers pay by card, touch payments or cashless apps.

[soonny]

I just thought cash was harder to track and, therefore, harder to tax.

[exploshaun]

In big cities, I tend to find that cash is only required for arcades, pachinko, vending machines, shrines, paying utilities, recharging IC cards