How to Pay in Japan - IC, Credit, Debit Card, Cash, Apple Pay (EMV Contactless), Wise

Tips to save money in Japan
Use Wise card to withdraw from ATM. Exchange and store Yen in Wise account for best rates and to avoid high fee.
Register your Wise account here: https://shorturl.at/oX0iY

0:08 - IC card
In terms of convenience and broad acceptance, IC cards are the preferred payment method in Japan for everyday use. In Tokyo and many other parts of Japan, Pasmo and Suica are popular prepaid IC cards that can be used for public transportation as well as for payments such as at stores, restaurants, and vending machines. The two cards are functionally interchangeable. Physical IC cards require a refundable deposit and must be topped up manually with cash.

The nine iC cards are valid on virtually all trains, subways, buses and monorails in most of Japan's major cities, including Tokyo, Osaka, Kyoto, Nagoya, Fukuoka, Sapporo
Note that IC cards cannot be used for travel outside designated areas and are only valid on select Shinkansen lines, which usually requires separate express ticket. some rural buses and trains as well as most long distance buses don't accept IC cards. Many taxis now support IC card payment.

Alternatively, you can add an IC card to your iPhone and recharge it directly with a payment card, making it much more convenient and it's also deposit-free. On Android devices, this feature is available only on phones sold in Japan with NFC that supports FeliCa.

1:56 - Credit and Debit/ Wise Card
widely accepted throughout Japan, especially in cities and tourist areas. Many travelers choose credit cards to earn reward points when spending overseas, though these cards often include a foreign transaction fee. Others opt for credit cards with no or low fees, which usually don’t offer points.
The Wise international debit card has no foreign transaction fee but charges a foreign exchange fee starting from 0.43%.

When asked to select the currency, always select the local currency Japanese Yen. Choosing your home currency triggers dynamic currency conversion, where the merchant’s payment processor sets the rate, typically 3–5% worse than the card network’s rate.

In major cities, credit cards are commonly used including many taxis. However, they may not be accepted at places like street stalls, small shops, and some ticket machines in train stations. Contactless credit card tap-to-ride for public transportation is still less common than IC cards, though its availability is gradually expanding.

3:16 - Cash
Cash remains the most commonly accepted payment method.
It’s best to carry some cash, around ¥10,000 per person for one week, since some small shops, temples, and rural areas still operate on a cash-only basis.
For withdrawing yen, ATMs at 7-Eleven, Japan Post Bank, family mart and AEON Bank are foreigner-friendly. They accept major international cards such as Visa, Mastercard, Cirrus, Plus. To save on fees, plan the withdrawal in one go. Using a debit card is better than a credit card, as withdrawals may incur:
• Bank’s ATM withdrawal fee (per transaction)
• Foreign transaction fee (~1%)
• Local ATM fee (¥110–¥220 per withdrawal)
Selected cards do offer fee waivers.

On top of that, Credit cards charge cash advance fees and immediate interest charges, making them costly for cash withdrawals.
You’ll generally find better exchange rates at ATMs or urban currency exchange offices than at airports. If you want to lock in the best rate, exchanging some yen in your home country before your trip is a good strategy.

https://en.namu.wiki/w/EMV%20Contactless

4:27 - EMV Contactless/ Apple Pay
Apple Pay, Google Pay and similar services use EMV contactless with NFC Type A/B, which is not as widely accepted in Japan because some payment terminals still don’t support it. A large portion of merchants still rely on FeliCa (NFC Type F), Japan’s fast local contactless system used by transit cards like Suica and Pasmo, and e-money brands like iD and QUICPay, which is not compatible with international EMV contactless.

A physical international credit card can often still be used by falling back to contact EMV - chip insert or, in some cases, a magstripe swipe.

EMV contactless acceptance is spreading quickly in Japan.

While most Japanese transit gates still use FeliCa, selected train and bus lines now support EMV contactless, allowing you to tap in directly with an Apple Pay or physical credit card that uses EMV.

To improve your chances of a smooth payment, tell the cashier you’re using Visa Touch (or Mastercard Contactless) or point to the wave logo, as some staff may not recognize the term “Apple Pay.” QUICPay terminals often work too.

An IC pre-paid card in a mobile wallet is stored on your device using FeliCa technology. It works instantly without an internet connection or bank authorization at the moment of tap, because the balance is stored on the card itself. EMV contactless credit/debit cards, in contrast, require real-time bank approval at the point of payment.