What is the best payment app for foreigners in Japan?

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.