How new money will destroy the vending machine industry in Japan (8 photos)

Japan loves vending machines, there are millions of them.





Stupid graffiti everywhere - the scourge of any city

The Japanese love them very much - and you don’t need to talk to people to buy, and rent a place to sell coffee, the machine will sell everything itself even at three in the morning.

And all this splendor may soon become a dead weight. Because on July 3, new yen banknotes were introduced in Japan.



Japanese vending machine selling bananas for 150 yen

Big machine gun paradise

According to statistics, there are 4.1 million vending machines in Japan. That's about 1 machine for every 30 Japanese people, the most vending machines per capita in the world.

Small businesses, especially ramen shops, use them to process orders. This system helps reduce the workforce in a country whose workforce is rapidly shrinking due to an aging population.





Fish soup, WITH FISH IN EACH BOTTLE in vending machines

That is, in a ramen shop there may be a vending machine in which you buy a ramen ticket and give it to the cook. No need to fuss with money or change, the chef just cooks - brilliantly convenient!

How automata keep Japan under their yoke

The coolness of the slot machines also has a downside. Did you know that Japan is one of the slowest countries to implement digital payments? Because it’s customary to pay in cash at the machines, and everyone here loves them.



Here is a very funny machine that sells water from different parts of Japan! Below is the map!

According to Japan's Ministry of Economy, Trade and Industry, non-cash payments account for only 39% of the country. Which is significantly lower than most developed Western countries and even its closest neighbor, South Korea, where the share exceeds 85%.



Burger from a vending machine. Looks good, but poor

In addition, the Japanese are very afraid that scammers will steal their card details and clean out their accounts. And although some vending machines already accept cards and cashless transactions, most of them work the old fashioned way - there is no point in upgrading them.

This is why the release of new banknotes has left many in a difficult position. They don't know how to read new money! Many of Japan's existing vending machines will now become obsolete and will either have to be replaced entirely or require major and costly upgrades.



The new banknote features Tsudo Umeko, one of the first women in Japan to study abroad.

The current banknotes were issued about 20 years ago. And according to a Fortune magazine report, currently only 30% of machines can accept the new banknotes! In fact, many machines still cannot even process the new 500 yen coins introduced in 2021. Only about 70% of drink vending machines accepted the new 500 yen coins released in 2021 in the summer of 2023!



This is my favorite machine! Secret prize, you DO NOT KNOW what you will get for 1000 yen.

And all replacements will be at the expense of the owners. For a small business, this is an unaffordable expense, especially in the current state of high inflation in Japan. The last time Japan changed money in 2024, vending machine makers became billionaires. They tripled their net profit.

Why change money at all?

Authorities say the move was a necessary step to prevent counterfeits. The new banknotes have enhanced security features and feature 3D portraits of the founders of the country's financial and women's educational institutions.



New super secure money

Plus, under this noise, funds are being injected into the economy. The introduction of the banknotes is expected to impact the country's economy by more than 1.5 trillion yen, leading to GDP growth.

Well, thirdly, this is such a cunning way to force the machines to switch to cashless transactions in such a tough way. Well, there is no way out.