Open loop wishful thinking trashes Apple Pay Express Transit reputation

The latest OMNY bump in the road perfectly captures the downside of making contactless credit/debit cards a one size fits all solution. As the New York Post piece (via MacRumors) points out, some Apple Pay Express Transit users are being double charged for fares. Perhaps they didn’t know that Express Transit was enabled in the first place, perhaps the iPhone passed too close to the OMNY transit gate reader. It’s a classic “you’re holding it wrong” situation that has nothing to do with Apple Pay Express Transit and everything to do with the current EMV architecture and how banks implement it.

Part of the problem is that OMNY is new, it’s not working across the entire MTA system yet, and open loop EMV bank cards will never replace all classic MetroCard fare options. That job is for the MIFARE based OMNY transit card due in late 2021. Until the system is complete Metro users will have to juggle different cards and deal with a very long transition. Transport for London (TfL) users have had MIFARE based Oyster cards since 2003, contactless credit/debit cards have been ubiquitous since the 2012 London Olympics when open loop was added to the TfL Oyster fare system.

To Biometric or not Biometric?
Open Loop credit/debit cards on transit gates instead of native transit cards always come with banking and credit industry baggage. Even in the contactless card heaven that is said to be London, there are a surprisingly number of gotchas: minimum limits for using cards, max limits that require PIN codes. It’s an endless loop of banks pushing one way and merchants pushing back.

The golden uptake for Apple Pay in Japan was Suica and is the same story everywhere: it’s all about getting rid of coins for transit, coffee, sandwiches, etc. The small stuff. This is the 20,000 JPY prepaid heavenly region where Apple Pay Suica sings and banks so desperately want to shut out all other players and keep all the marbles. But bank cards have an authorization problem: banks set spending limits not the card architecture. The line is always changing, what works today might not work tomorrow. The prepaid Suica architecture itself is the firewall that does away with user authorization because local processing transaction at the transit gate or store reader is all the authorization necessary.

Express Transit was developed for Apple Pay Suica in 2016, it remains the best matchup because the feature is a basic part of the Suica card architecture that is not a bank card. Apple Pay Express Transit for EMV payment cards that appeared with iOS 12.3 is a retrofit job that I predicted would have problems because retrofits are about dealing with baggage, not creating a better long term solution. 7 months later we are already there. This problem isn’t going away, not as long as banks and EMV keep operating the way that they do.

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Coming later this year attractions that didn’t make it, and one that did

Now that Apple is in full holiday season vacation mode, here is one last look at some promised ‘coming later this year’ services that didn’t make it (and a last minute one that did).

Apple Maps 2.0 USA
The highly detailed Apple Maps 2.0 remake was first announced in mid 2018 with a rollout to be in place for the United States by the end of 2019. The West Coast and Upper East Coast made the cut but half of Mississippi, the rest of the Southeast and most of the Central US are still missing (look for the green). This is not a good sign that Apple can deliver on their promise of providing better map services in Japan before the Tokyo Olympics.

UPDATE: A few hours after posting, MacRumours reports Apple Maps 2.0 data rolling out to all Southeast and Central areas following reports from Justin O’Beirne of beta testing earlier this month. I do not see updated map details from Japan yet but it will take time to show up on devices worldwide. Apple cut it close but kudos for keeping their 2019 delivery promise with 4 days to spare.

Apple Pay Ventra
The native Chicago Ventra transit card on Apple Pay is a big deal that was announced back in March. It represents the first major native transit card for the USA on Apple Pay. The much smaller Portland transit system HOP card landed safely in Wallet in May, but Ventra is still listed as ‘coming soon.’ The fault is not with Apple but with Cubic Transportation Systems who operate transit fare systems for Ventra, New York OMNY, Transport for London (TfL) Oyster, Sydney Opal, Washington DC Metro, and many more. For all of their supposed system expertise, Cubic was extremely slow rolling out Apple Pay Express Transit on TfL and has yet to deliver a single native transit card on Apple Pay or Google Pay. I hope Cubic does a better job in 2020.

Apple Pay Octopus
The Apple Pay Octopus ‘now you see it, now you don’t’ saga of 2019 was strange and ultimately sad. The Apple support side was all ready to roll with iOS 13. Octopus Cards Limited announced Apple Pay support back in July with ‘coming soon’ website artwork that was pulled when the launch was officially delayed on December 19. My take is that OCL parent Hong Kong MTR made, or was forced into, a political decision to limit services, starting with the unexplained service outage of Smart Octopus during the Hong Kong Polytechnic University siege. This is not a popular opinion.

Readers have reported riot damage to MTR infrastructure and suggest this might be a reason for the Apple Pay Octopus delay. I don’t buy it. Hong Kong MTR, or someone higher up, wants to limit services and control movement, not open them up. But this introduces great risk: moving people are moving money. Limit services and the flow of people, and you limit the flow of money. In this scenario Hong Kong doesn’t have a future. More than anything, I hope Hong Kong gets it’s future back in 2020.

Apple Maps Hong Kong Transit goes live, signals Apple Pay Octopus launch

1/8 UPDATE: Apple announces new Apple Pay transit cards for China but not Octopus

12/19 UPDATE: Apple Pay Octopus has been delayed to later in 2020

UPDATE: a new Octopus Cards Limited (OCL) support mail address for Apple Pay Octopus has come to light.

Echoing the 2016 Apple Maps Japan Transit launch just before Apple Pay Suica, users in mainland China report that Apple Maps Hong Kong Transit is now live again after a long absence. Details visible in 2015 disappeared and have gone online again. The updated Hong Kong information is not showing outside of mainland China yet, this may change as the service rolls out.

Hong Kong is rather unique in that Apple Maps uses 2 different map data sources for the same area, AutoNavi map data for mainland SIM iPhones, another one for non-mainland SIM iPhones. Apple Maps China Transit is only available when the user is on local carrier networks. This situation is exactly why a Apple Maps Transit team member once told me, “Hong Kong is complicated.”

This development, plus the just announced Lingnan Pass and ShenZhen Transit cards coming to Apple Pay in 2020 suggest that the long delayed Apple Pay Octopus launch is coming this year as promised. I think we can expect an announcement from Octopus Cards Limited shortly. For reference Smart Octopus in Samsung Pay was announced December 11, 2017 with a December 14 launch. It would be very interesting if Tim Cook, currently visiting Asia, was in Hong Kong for the announcement.

2019 Tidbits

The end of the year season is down for the count. Barring any news items like Apple Pay Octopus really launching this year, this is probably my last news post for 2019. Not news really, just tidbits.

Lingnan Pass and ShenZhen transit cards coming to Apple Pay in 2020
This piece of news came from Twitter users noting that the Lingnan Pass will come to Apple Pay in 2020. The Lingnan Pass and ShenZhen Transit pages show announcements released today (December 11), a machine translation roughly says Apple Pay support is coming soon. China has had the PBOC 2.0~3.0 contactless standard and T-Union transit card architecture in place for some time, with local transit cards slowly being updated to the new format. Beijing and Shanghai transit cards arrived on Apple Pay with iOS 11.3. Additional China transit cards were tested in an early developer preview of iOS 11.4 but dropped before the developer beta. Beijing/Shanghai transit cards were labeled beta up until iOS 12.2. Apple Pay Lingnan Pass and ShenZhen Transit will likely follow the Beijing/Shanghai transit card model with bank card recharge limited to China Union Pay (Interesting side note: Octopus and Lingnan Pass have a dual mode transit card). If Tim Cook does visit Hong Kong and China on his trip, things might shape up to be an excellent Apple Pay transit card year end Asian adventure.

Tim Cook’s Excellent Asian Transit Adventure?
The Tim arrived unannounced in Tokyo a few days ago, his first public appearance here since September 2016 and the first public demo of Apple Pay Suica just before the service launch. With Tim’s arrival in Tokyo I noticed an odd uptick in views from Hong Kong. When Tim landed in Singapore, Hong Kong views ticked up again. Obviously Hong Kong iPhone users are hoping that Tim will visit Hong Kong and launch the long delayed Apple Pay Octopus. I hope so too. Update: Apple Maps Hong Kong Transit information is available to China mainland users after a long absence.

12/19 UPDATE: Apple Pay Octopus has been delayed to later in 2020.

1/8 UPDATE: Apple announces new transit cards for China but not Octopus

Apple Pay Ventra
This was promised as ‘coming later this year’ back in May. As of December 10 Ventra Twitter support is still promising users to “stay tuned.” Let’s hope Cubic is working overtime to make it happen. Update: Ventra has changed the Apple Pay Ventra blurb from ‘coming later this year’ to ‘coming soon,’ we’ll see Apple Pay Ventra in 2020.

JP POST going Cashless
This was announced some time ago but is worth repeating: Japan Post is going cashless starting February 2020 in select central post offices, rolling out to all branches by May 2020. Your favorite plastic credit cards, eMoney cards (iD, QUICPay, Suica, etc.) and QR Codes (The PayPayPay crowd) can be used to pay for postage, sending packages, stamps, postcards, catalog items, etc. It would be nice if cashless payments improve post office lines and wait times, but I guarantee that’s not going to happen.

The Super Suica Touchless Connection

The recent flurry of press releases and news reports for touchless walkthrough transit gates and handsfree touchless store payments sheds considerably more light on the next generation Suica architecture and FeliCa OS. The new Suica card due in spring 2021 does not have an official name. I call it Super Suica. Here’s what has been announced so far.

Next Generation Suica “2 cards in 1” architecture, new FeliCa OS, new IC card format announced by Sony, JR East, JR East Mechatronics (JREM) in September 2018.

Handsfree touchless Mobile FeliCa payments technology based on UWB+Bluetooth on Mobile FeliCa announced by Docomo, Sony, NXP Semiconductors in December 2019. A new JR East touchless transit gate was also reported by Kyodo News around the same time and was confirmed by JR East. The new touchless payments technology uses FeliCa for transactions but uses a UWB+Bluetooth front-end instead of NFC.

No delivery date for touchless gates or touchless payments has been announced but as Junya Suzuki pointed out in his recent article, Japanese transit infrastructure investment runs in 7~8 year cycles. The Takanawa Gateway station opening and the Tokyo Olympics in 2020 are the kickoff for the next transit infrastructure cycle. I see 3 basic transitions for JR East and the other major transit companies.

  • Suica transition from legacy architecture to next generation ‘2 cards in 1’ Super Suica staring in spring 2021.
  • FeliCa transition from NFC only front-end to incorporate UWB+Bluetooth radio technologies for handsfree touchless payments. News reports suggest deployment of JR East touchless walkthrough gates starting in 2023.
  • QR Code transition from legacy magnetic strip and other paper ticketing. Testing and evaluation is due to start at Takanawa Gateway station in 2020 with new Suica+QR Code dual reader transit gates.

Next generation Suica and Touchless Mobile FeliCa represent an interesting twist in that both require a new version of FeliCa. My take is that the new versions of FeliCa OS are one and the same, and that both Super Suica and Touchless incorporate UWB and Bluetooth protocols for transactions in addition to NFC-F.

Zero-sum Game Reset?
People are already complaining ‘oh no, not more JR East/FeliCa proprietary BS,’ but that snap judgement is way too early. Outside of the basic technologies we don’t know what standards are involved for handsfree touchless payments, but we do know that NXP is partnering with Docomo and Sony on the effort. That means MIFARE is already working on it too. JR East announced at the 2016 Tokyo NFC Forum conference that they are dedicated to working for open compatible transit payments (i.e. open ticketing between transit operators, not EMV).

Let’s take JR East at their word and assume that there is just one flavor of UWB+Bluetooth touchless, that it is fast, that it is open. In this scenario the same UWB+Bluetooth touchless front-end could be used by anybody from the large established proprietary players like EMV, FeliCa and MIFARE to open transit payment associations like Calypso. I hope this is the scenario that plays out. We don’t need a repeat of the ‘let’s make NFC A-B (Philips and Motorola) an open standard and shut NFC-F (Sony) out of the game’ nonsense that didn’t help anybody except QR Code players.

The Apple angle is interesting. Global NFC support put Apple Pay ahead of the curve. Apple putting UWB into iPhone 11 this year could be another ‘get ahead of the curve’ move so that everything is ready to roll with Super Suica on iOS 15/watchOS 8 in late 2021. I doubt anybody will see it this way, but I think touchless Mobile FeliCa and JR East plans for it are one factor in Apple’s decision.

Handsfree Touchless Smartcards?
One very important question: does this stuff work on smartcards? So far only smartphones have been mentioned in the press releases. Indications are that Super Suica is launching with new IC smartcard issue, by necessity it will have be backwards compatible with current transit card IC infrastructure.

If JR East plans to deploy touchless gates systemwide starting in 2023, Super Suica plastic transit cards must work seamlessly with the new gates. It doesn’t make any sense to issue yet another card, Super Duper Suica, to work with handsfree touchless. It also doesn’t make sense if touchless is only for smartphones. If it’s going to work in the minds of transit users and be used at all, all of it has to work perfectly, out of the gate.