Japan has its own brand of luxury. Let’s set the scene: you are in Hakone, a spa town near Tokyo. In a ryokan, with your very own private balcony and onsen. Views of the hills, Instagram-worthy and mist-wreathed during the chilly mornings. It’s peaceful. Nothing like your usual commute.
The attendant knocks at your door to check on you. You see, in a ryokan, it’s often customary to offer kokorozuke, a cash-based token of gratitude, a long-standing custom.
Cards and platforms like Apple Pay are widely used in Japan, so you thought you’d be fine with just your credit card and a bit of change for emergencies.
According to the 2025 data from the Ministry of Economy, Trade and Industry (METI), cashless payments account for 58% of consumer spending. As expected, Tokyo is higher than this average. In Japan’s capital, the Tokyo Metropolitan Government puts it at 62%+. In most cases, your cards will work fine.
Tips are not usually a thing in Japan. But then there’s a bit of a luxury paradox. In certain scenarios, like with kokorozuke, for instance, a ‘tip-esque’ gesture may be necessary.
Kokorozuke loosely translates as “coming from the heart” and isn't a tip in the way we Westerners understand it. First, it’s entirely optional. It is reserved for situations of exceptional hospitality. It’s an exchange of respect and gratitude, not a simple, crude cash transaction.
For a ryokan, you get a dedicated room attendant, also known as the nakai-san who will often be with you for your entire stay. You will want to give approximately ¥3,000 (around AUD $27) to ¥5,000 (around AUD $45). You give kokorozuke at the start of your stay, not the end like we are used to.
Finally, you will want to present pristine notes only, placed inside a small envelope (a pochi-bukuro). Remember, Japan is very much a ceremonial society, and presentation is perhaps even more important than the amount within the envelope.
Luxury ryokan will take international credit cards without a hitch (except the kokorozuke, of course), but town bathhouses (sotoyu) tend to be cash-only, so it’s a good idea to have plenty of ¥100 to ¥500 coins. Bath entry fees usually range from ¥500 to ¥1,000, about AUD $4.50 to $9. Open-air footbaths (ashi-yu) are usually free, though you’ll want a few coins for a small towel or the occasional donation box.
If you frequent markets when abroad, you also know cash is standard. In Japan, tap-and-pay is still far from universal.
Japanese vending machines aren’t like those in Western countries. Some sell seasonal hot teas and artisan coffees. Others sell trendy toys, almost a Pokémon-esque ‘collect them all’ exercise. You can even get a full, hot meal in some of these machines. Some older ones are still cash-only.
In Japan, some of the best experiences are often had in rural and/or family-run establishments. They tend to cater to a single family or group; the attention to detail is like nothing you have ever experienced. For these stays, the booking is done by card. For (mostly) everything else, you will need cash. For example, a glass of wine in the evening, or a taxi to a tour.
Many sacred sites, shrines, temples, Zen gardens, or even master artisan ateliers do not have cash machines or ways to pay with your card or Apple/Google Pay.
The admission tends to be very affordable, typically ¥400 to ¥1,000, which is roughly AUD $3,60 to $9. Inside, you can purchase a wide selection of protective amulets called omamori. Or the wooden ema votive prayer tablets. These can vary in price, but trust us, you will end up buying more than you think!
Japan is a card+cash destination, unlike China, which is digital even at local markets. Have around ¥15,000 to ¥20,000 (around AUD $135-180) in cash per person, per travel day outside of Tokyo.
To make things easy, buy Japanese yen before you arrive. In many countries, like the U.K., Australia and New Zealand, you can do this at the post office or by ordering online. In the USA, a personal bank or credit union is probably your best option. This also has the advantage of ensuring clean, undamaged bills suitable for kokorozuke.
Don’t be worried about carrying much of this on your person, as crime rates are very low in Japan. You're more likely to lose it than be robbed!
