I Haven’t Needed Cash in Years. India’s Payment Life, Seen by a Japanese Woman
Last time, I wrote about riding horses. This time I want to talk about something you probably do without thinking: paying.
From October 15, a new merchant fee is reportedly coming to some UPI payments to businesses, specifically larger ones above 2,000 rupees. I read the news the same day I had lunch with a friend, and I immediately thought of the bill.
Today’s lunch
We wanted to split it. I paid the restaurant 2,600 rupees by UPI, and my friend sent me 1,300 rupees back, also by UPI. The whole thing took under a minute. After the new rule starts, a payment of that size to a restaurant might carry a fee. I’m curious whether restaurants will absorb it or quietly raise menu prices.
Almost no cash
I rarely use cash these days. The only times I do are when I pay my housekeeper’s salary and when I give tips. I could use UPI for both. I just don’t. Everything else goes through UPI or my debit card, and my rent is paid by bank transfer.
A Japan note: cash in envelopes
That habit has a Japanese echo. In Japan, cash still has a ceremonial role. Children receive otoshidama, a small cash gift in a decorated envelope at New Year. At weddings, guests bring goshugi, money in a special envelope, and people try to use crisp new bills. Handing over cash in some situations feels more respectful than a transfer. I think that’s why my housekeeper’s pay and tips still go in cash.
How Japan pays today
Get eyeco_IN’s stories in your inbox
Join Medium for free to get updates from this writer.
Japan has long been thought of as a cash country. The government’s ministry for trade and industry reported that cashless payments made up 58.0% of consumer spending in 2025, using its latest way of measuring. By the older measure, the 2024 figure was 42.8%. Credit cards do most of the work, and QR-code apps like PayPay are used by many people. So Japan is catching up, but cash remains part of daily life.
A friend and a bank statement
Here’s something a friend told me that I found interesting. At tax time in India, you submit documents including your bank statement. My friend worries that unfamiliar deposits might be mistaken for income and taxed. As far as I know that shouldn’t happen, but she avoids deposits anyway. It’s a small sign that trust in the system affects how people use money.
In Japan, most salaried workers never go through that process. Their employer handles their taxes through a yearly nenmatsu chosei, or “year-end adjustment.” Many people file nothing themselves.
Credit cards: a hobby here, a hobby there
My Indian colleagues often carry dozens of cards. One for travel, one for Amazon, one for car expenses, each chosen for its benefits. In Japan there’s a similar hobby called poikatsu, short for “point activities,” where people optimize which card or app to use to earn the most reward points. I’m a bit of an outsider to both. As a foreign resident, my eligibility is different, and I haven’t felt the benefits are worth the effort. UPI and a debit card are enough for me.
One more thing: Apple Pay
Apple Pay has long been missing in India, and it’s now reported to arrive this month. My bank isn’t on the list yet, and early reports suggest it may start with credit cards only, without UPI. So for now it won’t change my routine.
Why this feels good
Forgetting my wallet is not a problem here. If I have my phone, I’m fine. That’s remarkably convenient, and something I didn’t expect when I moved. But a new fee, a new payment option, or a new rule can quietly change how people pay, even for a small lunch.
Next time: why 7-Eleven left India, and what that says about convenience stores.
