People in Japan traditionally prefer cash for transactions, but digital payment apps are becoming more popular. The percentage of cashless transactions increased from 24.1% in 2018 to 39.3% in 2023. There are many options to choose from, including PayPayt, Rakuten Pay, and Line Pay. That said, what is the best payment app for foreigners in Japan
What is a Payment App?
A payment app allows you to make electronic transactions using your smartphone. To use a payment app in Japan, you need to download and install it on your phone, create an account, link it to your bank or credit card or charge it at an ATM. You can then easily send money and make payments by scanning a QR code or letting the cashier scan yours (or your barcode).
According to an April 2024 survey, PayPay is Japan’s most popular payment app, with around 49% of consumers using it. Rakuten Pay and Line Pay are also widely used.
Popular Digital Wallets in Japan
Here are some of the most popular payment apps for foreigners in Japan.
1. PayPay
PayPay is Japan’s leading QR code payment app.
How to Use and Charge:
- Download: Apple Store and Google Play
- Setup: Sign up with your Japanese phone number and confirm via SMS.
- Charge: Use a Japanese credit card, connect a Japanese bank account, or add money using cash at 7-Eleven and Lawson ATMs.
Pros:
- English Interface: Automatically switches to English if your phone is set to English.
- Cashback and Rewards: Offers regular promotions and discount coupons.
- Wide Acceptance: Usable at over 3.7 million locations in Japan.
- Security: Encryption and other measures are employed to protect your information.
- Usage Outside Japan: It can be used through integrated payment apps like Alipay in various countries, including Hong Kong, Thailand, Malaysia and the Philippines.
Cons:
- Only PayPay Card Accepted: Only PayPay’s proprietary credit card is accepted.
- ATM Interface: The ATM interface for topping up is only available in Japanese.
2. Rakuten Pay (R Pay)
Rakuten Pay, also known as R Pay, was launched in late 2016 and is integrated into Rakuten’s extensive ecosystem. This integration allows users to earn and spend Rakuten Points across various Rakuten services, such as Rakuten shopping and fashion.
How to Use and Charge:
- Download: Apple Store and Google Play.
- Setup: Register with your Rakuten account, which requires a residence card, a special permanent resident certificate, and a Japanese phone number.
- Charge: Use a Japanese credit card or bank account to earn and spend Rakuten Points.
Pros:
- Integration with Rakuten: Collect and spend Rakuten Points across various services.
- Promotions: Enjoy regular cashback and discounts.
Cons:
- Japanese Only: The app interface is only available in Japanese.
- Limited to Japan: Primarily useful within the Rakuten ecosystem in Japan and not typically used outside the country.
Click here to read more.
- External Link
- https://gaijinpot.com/
16 Comments
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factchecker
Cash. It's legal tender and widely accepted.
garypen
Incorrect. I have credit cards from MUFG, SMBC, and Orico connected to my PayPay app, in addition to my PayPay card.
garypen
How could they not include D払い? (D barai) It's quite popular, and its integration with D Point is a plus. If it had an English option, I would probably use it more than PayPay.
Gene Hennigh
My app is in my wallet. Cash.
virusrex
But it is not a payment app, which is what the article is talking about. One thing is to prefer not to use electronic money, another completely different to pretend it can be used in the same way.
garypen
As clever as you think that is, it is actually foolish. You miss out on all of the points/perks of using an app or even just credit cards.
I get PayPay and D Points for using their payment apps. And, I earn FF miles by using my ANA card. I have used those points/miles for lots of free stuff. Using cash is just throwing that bonus away.
Flute
@virusrex
???
It was a joke.
Sorry to say that but the article look like a PR piece. Lot of app are missing and never heard/saw of the one listed twice in the table. So I had to search for it : seems it is a Russian service. The money you send end up in some companies which are then paying for you (to make it simple). If, for example the said company asset are frozen, your fund too (so you can feel it is like you are loaning money to a Russian company). Thus the app company will have to pay you. If you browse long enough (I got a monster of a wall of the company page) you can find complain about heavy fees on transfer including while getting your money back and the official FAQ say the same and neither to Japan nor to yen is an option.
https://en.wikipedia.org/wiki/WebMoney
https://tass.com/economy/1401755
It is possible companies related to the system are on sanction list.
I would not recommend it for most foreigner.
DanteKH
None. All of those are a waste. If you already have Visa/MC cards, there is zero point in having those useless app s anymore, which can only be used in Japan.
Sometimes I use Suica cards to the vending machines, but thsts about it. With PayPay I totally gave up since their registration systems is the worst I have ever encounter, especially when checking your face and governmwnt documents. Too much personal information given to those companies on which you have no guarantees the data won't be leaked, like it happened so many times.
Mark
I use PayPay whenever I have the option. It's convenient and faster than using a credit card. And definitely faster than using cash.
virusrex
Which one? two different quoted comments made the same invalid point.
You are confused, this is about the service from KDDI
https://ja.wikipedia.org/wiki/%E3%82%A6%E3%82%A7%E3%83%96%E3%83%9E%E3%83%8D%E3%83%BC
tamanegi
Cash
ClippetyClop
It is slooowly getting better, although a few shops I frequent still have the old card readers that take about 20 glacial seconds to process. 7-11s aren't the fastest either.
It annoys me when I get asked if I want to pay by credit card when I'm holding my credit card next to the reader. Annoys me even more if they ask me if I want to pay 1回払い for the pack of gum or spread the cost over a year or so. And then they ask me if I want a bag and a reciept and it ruins my entire day.
I don't think I've seen any of the handheld card readers over here. In the UK they are everywhere and very convenient at pop up stuff like festivals or flea markets. The local milkman uses one on his rounds but still carries his satchel for the coin based crew.
timeon
just Pasmo for me (and credit card), PayPay was too annoying to sign up for
kohakuebisu
I use Paypay, mostly for stuff I buy on Yahoo Auctions because there are discount coupons if you pay via Paypay. I would get points on my credit card if I make the payment with that, but I prefer Paypay because I like the simplicity of a lower price rather than getting points and then having to work out how to use them. I have a button in my Paypay which means I can charge it directly from my bank account as necessary, and do not need to keep money with them.