This is called “Furoshiki” (風呂敷, ふろしき). It is a square-ish cloth used to wrap, carry and store items. Although it is a simple cloth sheet, it was widely used in Edo Period (1603 to 1867 year) as it can wrap things of various shapes and sizes.
Because a lot of Japanese people like to use cash over cards. According to a survey in 2016, 51％ of people said they pay in cash and 26％ of them said they pay with cards. There are several reasons why Japanese people prefer cash to cards:
We can also receive a package with a signature. In Japan, a Hanko (Seal) is more meaningful as evidence of a manifestation of intention that “I have certainly agreed to this.”, rather than as a tool of identity certification.