The issuance of new currency after 20 years has sparked a wave of enthusiasm in Japanese society to obtain the new bills, and stores are adapting to the change by updating their automated vending machines and other systems to accommodate the new currency.
In particular, some stores are switching to cashless payment methods due to the burden of replacing vending machines and the global semiconductor shortage.
While Japan has a high cash usage rate, the government aims to increase the cashless payment ratio. Therefore, the impact of this new currency issuance on the transition to a 'cashless' society is drawing attention.
On July 3, 2024, a new currency was issued in Japan for the first time in 20 years. Long lines were seen in front of banks from the morning as people rushed to get their hands on the new currency, and some shops were busy updating their vending machines and cash registers.
In Osaka Umeda, a special edition newspaper announcing the new currency issuance was distributed, and many commuters were delighted to receive the new banknotes. One citizen said, "I was looking forward to the new currency issuance, and I'm happy to get it today. Of course, I will keep it as a souvenir." Another citizen happily commented, "It's been 20 years, that's amazing. Cash is still king! Thank you (laughs)."
Stores are also quickly adapting to the new currency. The ramen shop 'Dai wo Dakite' (抱きしめたい), located in Osaka city, started preparing its vending machines for the new currency six months ago, but the assistant manager said, "We only changed it at the end of last month. We barely made it in time. Due to the semiconductor shortage, the machines themselves were not available…" expressing the difficulties they faced. This ramen shop kept the vending machine itself and only changed the internal system to accommodate the new currency. The cost of the change was about 150,000 yen. The assistant manager said, "We hope that customers who have the new currency will come and visit us."
According to the Japan Automatic Vending Machine System Industry Association, as of July 3, over 90% of ATMs and about 50% of food vending machines are capable of handling the new currency. On the other hand, some stores are abandoning vending machine replacements and switching to cashless payment methods. In addition, for transportation facilities, about 80-90% of railway, 60-70% of bus, and 20-30% of vending machines are able to handle the new currency.
According to the Ministry of Economy, Trade and Industry of Japan, the cashless payment ratio in Japan was 39.3% last year, which is low compared to other countries. Factors such as high trust in cash, easy access to ATMs, and reluctance to use credit cards are considered to be hindering the spread of cashless payments in Japan. The Japanese government aims to increase the cashless payment ratio to 80% in the future, and it remains to be seen whether this new currency issuance will accelerate the transition to a 'cashless' society.