A 29-year-old Chinese man has been indicted in what is being described as Japan's first known fraud case linked to Apple Pay, the new mobile payment service.

In March, four Chinese nationals allegedly used two iPhone 7s to purchase 981 cartons of cigarettes worth ¥4.45 million via Apple Pay at a convenience store in Saitama Prefecture using stolen credit card data.

Because the payment service only allows up to ¥20,000 to be spent per transaction, the phones were placed on the store's digital reader 704 times over a 10-hour period, the police said.