Apple is said to be in the process of developing special version of iPhone for Japan. The phone is likely to be outfitted with FeliCa chip, which will enable the users to pay for their bus, subways and train rides with just a tap. The chip will all let the users add e-money to their cards.
FeliCa chips are highly popular in Japan for making contactless payments. According to The Verge, the chip was developed by Sony and works on different protocol than the NFC systems. With the addition of this chip, the new iPhone users in Japan will be able to pay for their transportation by storing their travel passed in Wallet app.
MacRumors reported that FeliCa works faster than Apple Pay as FeliCa transactions do not require bank authorization. The chip also allows the users to pay for their shopping at convenience stores and vending machines. However, it is not yet clear whether iPhone will integrate this feature or not.
Apple is expected to incorporate this feature in its upcoming models. However, pending discussions with various transit companies in Japan, the feature may be delayed until 2017. Apple is likely to work with different transit card providers in Japan to create virtual versions of their offerings.
This new feature will help Apple in solidifying its position in Japan. Currently there are 1.9 million payment terminals using FeliCa cards. In 2015, FeliCa cards process 4.6 trillion yen ($46 billion) worth of transactions.
Apple currently offers its Apple Pay feature in more than half a dozen countries.
