What an eSIM is and how it differs from a physical SIM
An eSIM (from embedded SIM) is a digital SIM card built into the phone itself. Instead of inserting a piece of plastic into the tray, you download an operator profile onto the phone and you are done. For a trip to Japan that means you can buy your data online from home, install it before leaving and not have to look for or change any card on arrival.
Compared with the traditional physical SIM, the eSIM has three clear advantages for the traveller: there is nothing to pick up at the airport or have sent by post, you do not have to remove or store your home SIM (it stays inside the phone, on another "line"), and you activate it yourself in a couple of minutes. The physical SIM still makes sense mainly if your phone does not support eSIM.
And compared with pocket WiFi — that portable router you rent — the eSIM is not one more device to carry, charge every night and return at the end of the trip: it is inside your phone. Below we compare the four options in detail.