In recent years, as demand for inbound tourism to Japan continues to grow, the refinement of the payment environment has become a priority for many businesses targeting foreign tourists.

Compared with use in Japan, cashless transactions are more widespread overseas. As a result, many international guests feel inconvenienced when making payments in the country because their preferred method isn’t accepted. Which checkout options must businesses use to ensure that these visitors have a comfortable and fulfilling shopping and sightseeing experience?

In this article, we’ll explain the most efficient payment methods for inbound tourism operations and the measures related to acceptance for the overseas travel market.

What’s in this article?

• What are inbound payments?
  
• The importance of cashless payments for the inbound tourism market
  
• The best payment methods for inbound tourism
  
• Key points when selecting payment services for inbound tourism
  
• The importance of creating comfortable and secure payment infrastructure
  
• How Stripe Terminal can help
  

What are inbound payments?

Inbound payments refers to the ways to settle transactions and the payment systems that foreign tourists can use while traveling. In other words, “inbound payments” means cashless payments that are convenient and suitable for overseas travel.

Focusing specifically on inbound payments in Japan, this refers to infrastructure designed to enable guests to rely on familiar options from home when checking out locally.

The introduction of checkout options for travelers by businesses is directly linked to the revitalization of inbound consumption, making it extremely important in today’s rapidly growing overseas travel market. When stores in downtown and popular travel areas accept familiar ways to pay, foreign visitors feel more at ease while shopping in an unfamiliar place such as Japan, which increases convenience. A smoother checkout encourages them to shop freely and return. It also avoids currency exchange hassles and reduces error with change and the risk of losing cash while carrying it around.

The importance of cashless payments for the inbound tourism market

When introducing payment methods to expand inbound business, it is key to carefully consider what’s truly needed.

In Japan, a variety of cashless checkout options, such as mobile and online payments, are becoming increasingly widespread. However, sales to visitors are aimed not at locals but at foreign travelers. Stores must therefore support widely used tenders from different markets and regions.

According to data released in December 2024 by the Payments Japan Association (JPA), the percentage of noncash transactions in major countries for 2022 were as follows:

• South Korea: 99%
  
• China: 83.5%
  
• Australia: 75.9%
  
• Singapore: 65.6%
  
• England: 64.2%
  

From an inbound perspective, as travelers from these countries increasingly visit Japan, it becomes more necessary to offer the primary ways they prefer to pay.

In keeping with the same data, the noncash share in Japan that same year was 36%. This illustrates the need to further promote card and mobile wallet usage compared with markets such as South Korea and China. As reported by the Ministry of Economy, Trade and Industry, although the percentage rose to 39.3% in 2023, strengthening payment infrastructure across a wide range of regions in the country will be a key challenge in the future to attract inbound customers from overseas.

As per data from the JNTO, arrivals from abroad totaled 14,447,003 from January to April 2025, with the following results for the countries with the highest number of foreign visitors to Japan:

• South Korea: 3,227,855
  
• China: 3,130,450
  
• Taiwan: 2,161,301
  
• United States: 1,044,344
  
• Hong Kong: 911,248
  

The best payment methods for inbound tourism

Looking at the payment methods in the same JNTO report, we see that the main noncash choices used by international visitors in 2024 were the following:

• Credit cards (72.6%)
  
• E-money (30.3%)
  
• Mobile payments (17%)
  

Let’s take a closer look at each of these options.

Credit card payments

Credit card payments were the top choice among foreign tourists visiting Japan in 2024. And especially in the wake of the COVID-19 pandemic, tap-to-pay has become commonplace in many shopping scenarios—many visitors prefer it for its ease and speed.

E-money (IC transportation fare cards)

IC transportation cards issued in Japan, such as PASMO and Suica, are also one of the most commonly used payment methods by international guests during their stay. Not only do these cards work on public transportation such as subways and buses, but also at convenience stores, coin lockers, and vending machines, which allow users to make small purchases without the hassle of counting out small change, simplifying checkout.

Mobile payments

Because it is possible to settle easily with just a smartphone without having cash or a credit card, mobile payments are widely adopted among guests who value convenience. Examples include Apple Pay and Google Pay. The number of stores that support the use of Alipay and WeChat Pay, both of which are popular with tourists from China, has also increased.

Although options for noncash transactions in Japan continue to grow, JNTO data shows that cash still accounts for 94% of purchases. The numbers highlight the country’s continued reliance on banknotes and underscore the importance of tracking how quickly cashless adoption develops.

Key points when selecting payment services for inbound tourism

Scope of coverage

When selecting a payment service, it is fundamental to check whether it accepts major credit card brands such as Visa and Mastercard, as well as options widely used in South Korea and China, which are the major home countries for those traveling to Japan.

Ease of use

It is not uncommon for foreign travelers visiting for the first time to be confused by payment methods and local customs. In particular, many might feel inconvenienced or anxious when settling a bill during their stay, where the writing and spoken language are completely different from their own. That’s why Japanese establishments need to provide clear, straightforward checkouts for international guests. The speed of transaction processing plays a key role in usability.

Multilanguage support

One of the most central points in this segment targeting foreigners is multilanguage support. A checkout platform that offers various languages allows users to make payments with peace of mind, even if they don't understand Japanese. This can make the trip itself more comfortable, which may encourage travelers to spend more.

The importance of creating a comfortable and secure payment infrastructure

In this article, we explained payment methods for serving overseas guests, which are important for inbound businesses.

The checkout preferences sought by those visiting Japan vary greatly depending on the home country or region. Therefore, every business needs to study and understand which markets and areas have high purchase rates among tourists, identify the favored options in those regions, and then introduce the most suitable payment services for their shop.

Growth and local economies depend on meeting the needs of international visitors to Japan and preparing for the continued rise in trip demand.

How Stripe Terminal can help

Stripe Terminal allows businesses to grow revenue with unified payments across in-person and online channels. It supports new ways to pay, simple hardware logistics, global coverage, and hundreds of POS and commerce integrations to design your ideal payments stack.

Stripe powers unified commerce for brands such as Hertz, URBN, Lands’ End, Shopify, Lightspeed, and Mindbody.

Stripe Terminal can help you:

• Unify commerce: Manage online and in-person payments on a global platform with unified payments data.
  
• Expand globally: Scale to 24 countries with a single set of integrations and popular payment methods.
  
• Integrate your way: Develop your own custom POS app or connect with your existing tech stack using third-party POS and commerce integrations.
  
• Simplify hardware logistics: Easily order, manage, and monitor Stripe-supported readers, wherever they are.
  

Learn more about Stripe Terminal, or get started today.