"Even Generous Cashback Can't Stop Japan's Love for Cash...Japanese Returning to Bills"

Japanese People Returning to Cash
Returning to Cash Amid Overspending and Transaction Fee Burdens
Petition Submitted: "Don't Force Digitalization"

In Japan, as the use of cashless payments such as mobile payment systems and credit cards has surpassed 50%, there is also a movement returning to cash, citing reasons such as overspending and the burden of transaction fees.

According to the Ministry of Economy, Trade and Industry, the proportion of cashless payments, which was only 16.6% in 2010, surpassed 50% in 2024 and rose to 58% last year. Getty Images

"Losing the Sense of Spending Money"...Japanese People Returning to Cash Amid Overspending Concerns

On September 7, Asahi Shimbun reported that the Japanese government plans to raise the cashless payment ratio to as high as 80% to address labor shortages and improve work efficiency. To achieve this, the government has rolled out various policy measures, including cashback campaigns.

According to the Ministry of Economy, Trade and Industry, the cashless payment ratio, which was only 16.6% in 2010, surpassed 50% in 2024 and rose to 58% last year.

However, there are also negative side effects surrounding the convenience of cashless payments.

Some consumers point out that the lack of handing over physical money dulls their sense of spending, which often leads to overspending.

A 39-year-old woman in Tokyo, who had been using both credit cards and convenient payment methods, only checked her household account book after receiving an overdue notice for 50,000 yen (about 430,000 won) due to insufficient funds in her account.

After discovering a buildup of small, unconscious expenses, she changed her spending habits by paying living expenses in cash, except for fixed costs such as utility bills, and paid for online shopping in cash at convenience stores. As a result, her monthly cashless payment bill was reduced by about 60,000 yen the following month compared to the previous month.

The photo is not related to the specific content of the article. Photo by AFP Yonhap News

Shops Returning to Cash Due to Transaction Fees..."No Major Change in Customer Numbers"

The burden of transaction fees for self-employed business owners is also a major factor encouraging a return to cash.

A ramen shop in Tokyo, facing an annual burden of 400,000 yen from a 3.24% fee on payment transactions, discontinued QR code and other non-cash payments and reverted to operating as a cash-only establishment.

According to private credit investigation firm Daikoku Data Bank, the proportion of payment fees relative to sales for distribution companies reached 2.04% in 2024, approximately 45% higher than 1.41% a decade ago. Getty Images

The owner said, "Even after discontinuing cashless payments, there was no major change in the number of customers," adding, "Returning to cash was the right decision."

According to the private credit information company Daikoku Data Bank, the proportion of payment fees to sales in distribution companies increased to 2.04% in 2024, which is about 45% higher than the 1.41% a decade ago.

Petition Filed: "Don't Force Digitalization"

The photo is not related to the specific content of the article. Photo by EPA Yonhap News

Additional factors supporting the use of cash include the risk of payment system failures and the digital divide affecting the elderly, who have difficulty using smartphones.

A nonfiction writer in her 30s from Chiba Prefecture submitted a petition to the Tokyo Metropolitan Assembly this past June, representing people who struggle with digitalization in daily life—such as her parents in their 60s who do not use smartphones—urging for "the right to an analog lifestyle without being forced into digitalization."

This content was produced with the assistance of AI translation services.