myki transit card expanding to Apple Pay

The Open Loop lovin’ NFC Times (paywall) reports that with the successful launch of myki on Google Pay, Public Transport Victoria (PVT) has allocated 1 million AUD to expand the virtual myki transit card to other digital wallet platforms, like Apple Pay and Samsung Pay.

Anyone up for taking bets on who gets it first?

UPDATE: It looks like Apple Pay is the winner when iOS 13 ships this fall

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The Rakuten Pay Super Suica Connection

IT journalist Junya Suzuki wrote an interesting piece for Impress Watch detailing the recent Rakuten Pay Suica announcement. Unfortunately there was a major missing piece of analysis: Super Suica. I asked him about it.

I look forward to reading Suzuki san’s take, meanwhile here is mine. It has everything to do with the Japan Transit IC card standard and the common eMoney purse that I wrote about in the Apple Card piece.

(The) Japan Transit IC card standard occupies a very special category, 255 transit companies form a common interoperability standard which started from Suica. There are more issued Transit IC cards than people in Japan, everybody has one.

The core group of 9 major cards (Suica, PASMO, ICOCA, TOICA, Kitaka, manaca, SUGOCA, nimoca, HAYAKEN) also share a common prepaid purse: Transit IC eMoney. The national coverage and scale of the major cards transforms Transit IC eMoney into something special found nowhere else: a de facto national prepaid card standard.

File:ICCard Connection en.svg
Japan Transit IC Map, a very cool animated timeline is also available

Pay close attention to the transit cards that encircle the pink area, with the exception of PiTaPa. These are local rural area transit cards that are currently orphaned from both the common eMoney purse, and transit interoperability.

In April 2021 Super Suica will enlarge the pink area to include these orphaned cards. They will join the common eMoney purse and be compatible with all the pink area cards for transit and purchases. These will also be on Apple Pay Suica, Google Pay Suica and Osaifu Keitai.

That is a huge change in and of itself, but there is another very important aspect. All of these orphaned rural area transit cards are basically cash recharge only. Rural area transit companies operate on shoe string budgets and cannot afford the infrastructure cost to host credit card recharging on the back end even for kiosks.

Super Suica will solve this problem and what better solution than Rakuten Pay Super Suica for all rural Rakuten Pay users, and there are lots of them. This is the major sweet spot that Rakuten and JR East are aiming for. It merges the Rakuten Pay backend with the Super Suica frontend into one convenient service for transit and eMoney purchases while leveraging lucrative Rakuten loyalty points. Rakuten has the best integrated point system in Japan and JR East wants to use it to extend the Suica Platform nationwide. Rakuten Pay and Super Suica belong together, like peanut butter and jelly.

EMV Express Transit Option Returns in iOS 12.4 Public beta 4

The temporary absence of EMV Express Transit in iOS 12.4 betas 1~3 has ended, the option has finally returned in iOS 12.4 public beta 4 (16G5046d). OMNY users in New York can use the beta for transit now, but since OMNY itself is one big beta system why bother with beta on beta? I think it’s better to wait for the official release. Portland HOP iPhone users need not bother as they can put real HOP card in Wallet. It’s way better than using a credit card, faster and cheaper too.

The only question remaining is, what kind of Wallet grunt work were they up that they had to remove EMV Express Transit temporarily in the first place?

Suica tops cashless use for the younger generation

There is a universal law that whenever you post anything with recent market data, newer better market data appears the next day. Just after posting the latest Contactless Payment Turf Wars installment focusing on Suica eMoney, TesTee Lab released a new market survey focusing on prepaid eMoney use (Suica, WAON, nanaco, etc.) in younger people ranging from teens to twenty somethings. The sample is small, only 3,396, and does not mention if the sampling is regional or national, but it runs from 2017~2019 which makes it possible to tease out some trends.

The first graph looks at overall spending methods: cash, eMoney, plastic credit cards, etc. Cash is still king but is closely followed by FeliCa eMoney (mostly prepaid, some postpay) and plastic credit cards. Unfortunately there is no spending category information (convenience stores, restaurants, etc.).

The next category focuses on eMoney categories: Suica/Transit, nanaco, WAON, etc. The inclusion of postpay iD and QUICPay muddies the water some, but one important takeaway is that Suica/Transit use leads the other prepaid cards by a wide margin. The other important takeaway is that Apple Pay Suica/Google Pay Suica is the most used digital wallet card. The top 4 spending categories are: convenience stores 76%, transit 58%, supermarkets 33.4%, cafe/restaurants 16.9%.

The next graph illustrates an interesting trend. As eMoney acceptance grows and more people use it, the more people want to use it everywhere. And the more they use it, the less concerned they are about security.

iOS 13 NFC for Japanese Individual Number Cards

No sooner than Apple announced iOS 13 with enhanced Core NFC read/write support than developers are quickly preparing to use it. Engadget Japan and Nikkei both report that the Japanese government will add support for iPhone NFC tag reading Individual Number Cards this fall. Individual Number Cards are a fairly recent development for the Japanese national and local governments to gradually tie various social services and income tax filing to a single personal ID number for better management and control. It’s evolving into a general purpose national ID card.

Individual Number Cards are supported by card readers that require a personal computer and additional software. FeliCa NFC tag reading with a smartphone is much easier because it can work out of the box and an app. Android Phones are supported but limited to select AQUOS, Galaxy and Xperia smartphone models. iPhone NFC tag support in iOS 13 will considerably widen the user footprint.

Masanori Kusunoki Japan Digital Design CTO tweets confirmation of Japanese government support for Individual Number Card NFC tag reading with iPhone iOS 13 NFC this fall