Pasmo IC Cards vs. Digital: How to Pay in Japan?
James Lau
IC cards like Suica and Pasmo have been the main way to pay for public transportation in Japan for years. These cards are easy to use—just tap and ride, and there is no need for tickets or cash.
Lately, however, more people are turning to digital options like Apple Pay and contactless credit cards. These methods are already built into smartphones, so there’s less of a need to carry another card. Now, Japan is asking: is it time to move on from IC cards?
What are IC cards, and how are they used?
IC cards are rechargeable cards that store money and let you pay for rides by tapping them at train stations, buses, and even taxis. You load money onto them at ticket machines or convenience stores. Every time you tap, the fare is automatically deducted. This saves time and skips the need to buy tickets for every trip. It’s a system that’s been around for decades and works well.
You can also use IC cards to shop at convenience stores, vending machines, and fast food spots. Because they’re prepaid, they make it easy to track spending and avoid going over budget. Many commuters carry them daily, and some even use them for small daily purchases. The whole system is simple and doesn’t require any tech knowledge. That’s a big reason why they’ve stayed popular for so long.
Why is Japan moving away from IC cards?
The main reason is cost. Upgrading and maintaining the IC card system is expensive—over 1.2 billion yen in some cities like Kumamoto. With fewer people using public transportation, the money isn’t there anymore. Companies are looking for cheaper ways to handle payments, like using QR codes or tapping a credit card. These newer systems are much more affordable to set up and run.
Another reason is that more people are using smartphones and digital wallets. Apps like Apple Pay and Google Pay are already on most devices, so carrying a Pasmo is unnecessary. Tourists also prefer using what they already have instead of learning to use a new system, making digital payments more appealing to everyone. Overall, it’s just a smoother experience.
Pros of Digital Payment Methods
Digital payments are catching on fast, especially with younger commuters and tourists. Using something already on your phone is easier than figuring out how to use a Pasmo. You don’t have to buy an IC card or worry about recharging it at a machine. Just tap your phone or a contactless credit card and go. This game-changer for tourists saves time and confusion, and cities are starting to take notice and look for cheaper, modern alternatives.
Another benefit is the lower cost for transit companies. Since digital payments use existing systems, there’s less hardware to install and maintain. These systems also tend to have better security features, which help prevent fraud. That makes them safer for both companies and passengers. In the long run, they can also be updated more easily, reducing the number of station machines needed.
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Cons of Digital Payment Methods
But going all-digital comes with a lot of downsides. Not everyone has a smartphone or a smart credit card, especially older commuters. That makes it hard for some people to switch. There’s also a learning curve for anyone not used to using apps or digital wallets. Some people just prefer paying with cash or something familiar. There are also security concerns, like fraud and hacking.
Another issue is reliability. If your phone dies or the signal drops, you might not pay. IC cards don’t have that problem—they work offline and don’t need batteries. That’s a huge advantage during emergencies or travel delays. Plus, some rural areas might not have the tech needed for full digital access. In the countryside and other hidden areas of Japan, using an IC card or even cash would mean you would always be able to pay.
Should we keep Pasmo in the future?
Ditching IC cards like Pasmo completely probably isn’t the best move right now. Many people still rely on them daily, and they work well. They’re also a great backup if your phone battery runs out or your app glitches. Offering both IC cards and digital payments gives people more choice. That kind of flexibility makes the system stronger as it continues to change in the future.
The switch will happen naturally as more people get used to digital payments. But forcing it too quickly could leave certain groups behind. Transportation companies should give support and time for people to adjust. They can also slowly upgrade systems instead of doing it all at once.
That way, no one is left out. The goal is to ensure that everyone can continue using their services, no matter what they choose. Have you ever used Japan’s transportation system? Did you use IC Cards or digital payments? Tell us in the comments below!
