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Whenever I go there, I am struck by the number of cash transactions. Somebody always produces a wad of 100's at the checkout counter. In an American food market, this would be an anomoly. At this market it is the norm.
Of course, we have no idea how many more reservations we might get if we offered a way of paying cash.
I find that many vendors just plain don't take credit cards. I've learned to take a big wad of cash with me when I go.
However, they are rapidly starting to adopt electronic payment systems, like SUICA (controversional WP link [en.wikipedia.org] JR Train swipe cards -like MetroCards), and the use of debit-style cards is rapidly rising.
I don't think that they are averse to using cards online, but they don't have the social infrastructure that you see in the US that makes it so predominant here.
I expect that to change soon. Japan is always changing.
Q1: Select the way you most often pay for goods or contents, etc bought online. (Sample size=313)
Credit card 72.8%
Cash on delivery 8.9%
Bank or post office transfer (ATM or branch) 7.0%
Bank or post office transfer (online) 4.5%
Pay at convenience store 6.1%
Direct transfer from bank account 0.3%
Edy, WebMoney or other electronic cash 0.3%
Net Debit 0.0%