This little card is the equivalent of the Oyster card in London, or Navigo in Paris. It is very practical in Tokyo, because there are at least 3 different companies operating the trains and chikatetsu (subway). So connecting from one to another is a headache if you have to get a ticket everytime.
With pasmo, you put any amount of money on it and you breeze through all gates while it deducts the exact fare upon your exit.
What is more convenient even is that you can pay with pasmo in cafes, combini or even shops on the shinkansen platform. It saves me from handling little change.
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