Banking Solutions in Japan: A Complete Guide for Expats
Japan has long been known for its conservative banking system, where cash was king for decades. Even today, you can still find small restaurants and businesses that only accept cash. However, cashless payments are now widely available across the country, and Japan has rapidly adopted e-banking solutions.
Criteria for Choosing a Bank in Japan
If you’re not planning to take out a loan, your primary criteria for choosing a bank in Japan should be:
- 🏧 ATM Accessibility – Is there an ATM near your home or workplace?
- 💰 ATM Fees & Withdrawal Limits – How many free withdrawals are allowed per month?
- 📱 Online Banking Features – Does the bank have a user-friendly app for transfers and payments?
- 🌍 International Transfer Options – Does the bank support affordable and fast overseas transactions?
- 🗣 English Support – Does the bank offer an English interface or English-speaking customer service?
💡 With these factors in mind, let’s explore how to withdraw money, make domestic transfers, and send money overseas in Japan.
Best Banks & E-Banking Options for Expats in Japan
Japan Post Bank (ゆうちょ銀行 | Yucho Ginko)
- ✅ Easiest bank for expats to open an account.
- ✅ Nationwide ATM network (often found in post offices and FamilyMart).
- ✅ No withdrawal fees at Japan Post ATMs during business hours
- ❌ ATMs inside post offices close outside business hours and on weekends.
- ❌ Limited online banking features.
💡 Best for: Expats who need a basic bank account with a nationwide ATM network.
Shinsei Bank (新生銀行)
- ✅ Best online banking experience for expats.
- ✅ English-friendly interface (one of the few banks with English support).
- ✅ 1+ free domestic transfers per month.
- ✅ No ATM fees at partner bank ATMs..
- ❌ Smaller ATM network than Japan Post Bank.
💡 Best for: Expats who prefer an English-friendly banking experience with a modern mobile app.
Neo Banks (Online-Only Banks in Japan)
- ✔ Seven Bank – ATM access at all 7-Eleven stores, good for international transfers.
- ✔ PayPay Bank – A popular cashless bank integrated with Japan’s mobilepayments.
- ✔ Sony Bank – Online bank with English support and global transfer features.
- ✔ Rakuten Bank – Great for online shopping, free transfers in Rakuten ecosystem.
💡 Best for: Expats who prefer digital banking with fewer in-person visits and want better international transfer options than traditional bank while keeping a standard japanese bank.
Comparison Table: Best Banking Options in Japan
| Bank Name | ATM Fees | English Support | Free Domestic Transfers | International Transfers | Online Banking |
|---|---|---|---|---|---|
| Japan Post Bank | Free (Post Bank ATMs) | ❌ No | ❌ No | ❌ Expensive | ✅ Basic |
| Shinsei Bank | Free (Partner ATMs) | ✅ Yes | ✅ 1 free/month | ❌ Expensive | ✅ Excellent |
| Sony Bank | ✅ Free | ✅ Yes | ✅ Limited | ✅ Easier | ✅ Good |
| Rakuten Bank | ✅ Free | ❌ No | ✅ Limited | ✅ Easier | ✅ Good |
| Seven Bank | ✅ Free | ❌ No | ✅ Limited | ✅ Easier | ✅ Good |
Credit Cards in Japan: How They Work & Best Options for Foreigners
In Japan, most banks offer credit card options, but the application process is much stricter than in many other countries, especially for foreigners. If you’re new to Japan or don’t have a long credit history in the country, getting approved for a credit card can be challenging.
How Credit Cards Work in Japan
Japanese credit cards operate differently than in many Western countries:
- ✔ Full Payment at the End of the Month – Unlike the revolving credit system common in other countries, most Japanese credit cards require you to pay the full amount due at the end of each billing cycle. The payment is automatically deducted from your bank account.
- ✔ Installments & “Revolving Payments” (リボ払い | Ribo Barai) – Some cards allow installment payments, but these often come with high interest rates, making them an expensive option.
- ✔ No Need to Get a Credit Card from Your Bank – You don’t have to get a credit card from your Japanese bank; many people apply for separate credit cards issued by major retailers or international providers.
Best Credit Cards for Foreigners in Japan
Since approval for a Japanese credit card can be difficult for foreigners, here are some of the best options based on ease of application and benefits:
1. Rakuten Credit Card (Easiest for Foreigners)
- ✅ Most foreigner-friendly credit card in Japan – Many expats have successfully passed the screening process.
- ✅ No annual fee and comes with Rakuten Points for shopping.
- ✅ Accepted at most stores and online shops.
- ❌ Approval is not guaranteed, but it’s easier than most other Japanese credit cards.
💡 Best for: Expats looking for a reliable, easy-to-apply-for credit card with cashback rewards.
2. American Express (AMEX) Japan
- ✅ Higher approval rate for foreigners than other Japanese credit cards.
- ✅ Good for international travel and spending.
- ✅ Various membership rewards and travel perks.
- ❌ Annual fees can be high, depending on the card type.
💡 Best for: Expats who travel frequently and need a globally accepted credit card.
3. MobalPay (Foreigner-Specialized Prepaid Card)
- ✅ Designed for foreigners in Japan with no strict credit check.
- ✅ Works like a prepaid card, so you load money onto it before using it.
- ✅ Good alternative if you can’t get approved for a traditional credit card.
- ❌ Limited features compared to a regular credit card.
💡 Best for: Foreigners who struggle to pass Japanese credit card screenings but still want a reliable payment solution.
Tip:
Using Wise for online payments and international transactions is also a great alternative to a normal credit card.
Comparaison Table: Best Credit Cards for Foreigners in Japan
| Credit Card | Annual Fee | Approval for Foreigners | Best For | Rewards & Benefits |
|---|---|---|---|---|
| Rakuten Credit Card | ✅ No | ✅ High | Everyday spending & cashback | ✔ Earn Rakuten Points, widely accepted |
| American Express (AMEX) Japan | ❌ Yes (Varies) | ✅ Medium | Frequent travelers | ✔ Travel perks, global acceptance |
| MobalPay (Prepaid) | ✅ No | ✅ Very High (No credit check) | Those with no credit history | ✔ Prepaid option, easy approval |
| Mercari Credit Card | ✅ No | ✅ Medium | Shopping on Mercari | ✔ Cashback when used on Mercari |
| ANA Mileage Club Card | ❌ Yes (Varies) | ❌ Low | Frequent flyers | ✔ Earn ANA miles on purchases |
Tip:
If you're a foreigner in Japan with no credit history, start with a Rakuten Credit Card or MobalPay. For international transactions, Wise is a great alternative.
Final Thoughts: Choosing the Best Banking & Credit Card Solutions in Japan
Navigating the Japanese banking system as an expat can be challenging, but by choosing the right bank and payment methods, you can avoid unnecessary fees, simplify transactions, and access the services that best fit your needs.
- 🏦 Simple, widely available bank – Japan Post Bank is the easiest to open with a nationwide ATM network.
- 📱 Digital banking with English support – Shinsei Bank or Sony Bank offer modern online banking solutions.
- 💸 For frequent international transfers – Wise remains the most efficient and cost-effective solution.
- 💳 For the credit card – Rakuten Credit Card is the most expat-friendly, while AMEX is a strong option for frequent travelers.
- 🛑 Struggle with credit approval – MobalPay offers a hassle-free prepaid alternative.
Tip:
No single bank or card is perfect for everyone, so consider your ATM access, fees, online banking preferences, and international needs before choosing. By doing so, you'll streamline your financial life in Japan and maximize your banking and credit options! 🚀
