The new service, called iTunes Pass, essentially helps Apple Stores get rid of gift cards in Japan and works with iTunes Store, iBookstore, and the App Store on iOS. iTunes Pass allows users in Japan to come into the store and purchase credit that will be transferred immediately to the Apple ID account via Passbook instead of using a gift card. The service aims to cut down on waste and help customers in Japan, who predominately use cash for transactions, according to MobilePaymentsToday.

Apple also offers a number of other features using Passbook, including buying WorldWide Developer Conference tickets and acquiring iTunes Festival tickets, which are free. Many are hypothesizing that all of these additions are small steps towards a larger payments service, which will be organized around customers’ Apple ID’s and the credit card information attached to the 800 million Apple ID accounts. While that may be stretching it quite a bit, Apple does seem interested in the payments market and this is another indicator in that direction.

Here’s how Apple describes iTunes Pass, translated from Japanese:

Use the iTunes Pass, you can now deposit directly to the account of the App Store or iTunes Store you. Go to the iTunes Store in the iOS device you have, if you tap “Use iTunes Card / Code” button and scroll down, you can get the iTunes Pass. 3 Please tell specialist that then, the Apple Store near you, you want to deposit into account. When you open the iTunes Pass from the Passbook, specialists will scan it, and accepts the payment. Balance is updated on the fly, available immediately.