Japan is bracing for rage against the vending machine

In many ways Japan is a country that’s firmly embraced technology, yet it remains attached to good old-fashioned cash.

Plenty of locals and tourists wave their credit cards in the shops scattered along the Zelkova-lined avenue of Tokyo’s Omotesando and the boutique shopping district of Ginza, but cash is still king in several other locations.

Hole-in-the-wall izakayas (traditional bars), ryokan (traditional inns), and Shinto shrines often accept cash only. Sure, urban areas like Tokyo and the Kansai region’s Osaka are card-friendly, but carrying physical yen is recommended when venturing beyond major cities.

But those who want to use a vending machine in Japan may want to double-check the type of bills in their wallets.

For the first time in 20 years, Japan started issuing new banknotes this week in an effort to combat counterfeit money. The only problem is that they might not be accepted everywhere.

Japan has issued new banknotes.

Take Japan’s millions of vending machines. They’re big business, offering everything from hot coffee and beer to wagyu and hot sauce. Though some accept card payments, those that take cash may not accept Japan’s new banknotes.

The Japan Vending Machine Manufacturers Association recently said that almost 80% of the country’s machines would need upgrades to accept the new notes, Reuters reported. Many restaurant and parking-ticket machines would also need an update.

The issue is that Japan’s retro machines aren’t designed to process the new notes, which have high-tech specs incorporated to help determine authenticity.

They include portraits of historic figures as 3D holograms — a world-first, according to the Bank of Japan — designed to rotate when a note is tilted. Getting Japan’s aged machines ready for these new notes will now take time — and money.

Vending machines are a common sight in Japan. 

In April, the Bank of Japan said that despite the growth in cashless payments, it expects “the demand for cash, which can be readily used by anyone, anywhere, and at any time,” will continue to play a significant role in the economy.

The banknote issues come at a peculiar time. Tourists have been flocking to Japan this year to take advantage of a weak yen, which hit a 38-year low against the US dollar this week.

Travel guides often tell tourists to carry cash. If they’re stopping by a vending machine there anytime soon, they may want to check first if their bills will work.