This chapter provides a careful analysis of the current situation and prospects regarding the substitutability and complementarity of cash payments and various cashless payment methods for Japanese individuals and households based on data for Japan as of 2022. Fujiki carefully examines the growth of cashless payments during the spread of COVID-19 infection and reviews relevant academic research in Japan and abroad. Based on this, Fujiki also considers the impact of policies such as the issuance of central bank digital currencies and the improvement of households’ financial literacy. In his comment, Masao Nakata further points out the impact of some factors unique to Japan on households’ choice of means of payment, such as differences in consumer perceptions of the safety of cashless payments and the reserve demand for cash for emergency payments due to the high incidence of natural disasters compared to other countries.