This is no longer true. With the advance of "cashless" systems that were heavily pushed and promoted by the government, cash payments have dropped significantly![0] Cashless payments now sit near 50%, up from 16% 10 years ago.
The online, ad infested phone-app-only, less accessible "cashless" systems like paypay.
Even today the only place you can buy food with your pasmo/suica card is at the convenience store. Why is that?