WWDC20 iOS 14 Apple Pay Wish List

I already outlined some iOS 14 Apple Pay possibilities regarding AliPay QR payments, UWB Touchless and Secure Element Certificates. iOS 14 AliPay QR support, if it comes, would be a 180 from the Apple Pay Wallet WWDC18 theme of ‘get rid of QR passes and make them NFC’. We’ll see. Here are some wish list items in no particular order, most of them repeats from 2019:

  • Please redo the dumb dark mode driven Wallet transit card UI. All recent Wallet UI tweaks are not about making a better overall Wallet card UI experience and mostly there so it doesn’t suck in dark mode. Sorry, but it still sucks. Honestly, iOS/macOS system wide dark mode is such an overhyped piece of UI crap. I don’t use it anymore.
  • Now that we have Background NFC tag reading across the entire iPhone lineup, can we finally have NFC Tag Apple Pay that Jennifer Bailey unveiled last year.
  • Apple Card does dynamic card stuff, would be nice to have for other Wallet cards too.
  • More built in embedded Secure Element provider support: Calypso, CEPAS, etc.
  • Apple Pay Japan is still missing some important e-money prepaid cards like WAON, nanaco, Edy that have been on Google Pay for some time now, it would be nice to have loyalty prepaid card support for items like DOTOUR Value Card too, and please improve the Apple VAS experience, it’s old dog slow on the store reader.

I’d do a postmortem after WWDC. Enjoy the show.

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Hell to the yes: Apple Pay Octopus launch…for real (Updated)

Good news for long suffering Hong Kong iPhone users: press invitations labeled ‘Redefining Mobile Payments’ that went out to local media outlets on May 28 signaled Octopus for Apple Pay would finally launch on June 2, which it did in tandem with Apple Maps Hong Kong Transit directions just before 1 am June 2 local Hong Kong time. The press event took place at 12:30 pm.

Didn’t we do this already?

OCL teased everyone when it first announced Apple Pay Octopus as ‘coming soon’ in July 2019, then ‘as soon as possible’ in September, finally postponing it in December for ‘later in 2020’ without explanation. This despite endless beta test leaks that indicated everything was ready to roll and endless launch rumors that never panned out. The Apple Pay Octopus Wait for Godot was a very bumpy journey. A timeline:

Global NFC iPhone and Apple Watch
Apple Pay Octopus is just like Apple Pay Suica with Express Transit. It can be used on iPhone 8 and later with iOS 13.5, and Apple Watch Series 3 and later with watchOS 6.2.5. Apple devices from anywhere can add and use Octopus thanks to Apple global NFC support but practical use is limited to having a Hong Kong issue Mastercard, Visa or UnionPay bank card already in Wallet.

iPhone 11 Pro/11/XR/XS have the A12/A13 Bionic exclusive Express Transit with power reserve feature that gives users an additional 5 hours of Express Transit use when iPhone is in low battery power reserve mode. A12/A13 Bionic powered transit card performance is also much improved over previous iPhone models because the Bionic Secure Element directly handles transactions that eliminate iOS overhead. If Octopus on iPhone X doesn’t work well, check this support post.

Apple Watch is the first time Octopus has landed on a smartwatch. As a long time Apple Pay Suica user I can tell you that it’s the Apple Watch killer app. Octopus users will really enjoy the experience on Apple Watch especially when hooked up with auto recharge/Automatic Add Value Service (AAVS).

Similarities with Suica
Octopus is based on the same FeliCa technology that powers Suica, both cards are very similar in scope and use for fast transit and contactless payments of all kinds. According to Wikipedia over 33 million Octopus cards were in circulation as of 2018 used by 99 per cent of Hong Kong residents. The ubiquity of Octopus with Express Transit for transit and purchases will drive Apple Pay use in Hong Kong far more than regular credit/debit cards.

Apple Pay Octopus and Apple Pay Suica both have the same fast Express Transit performance that no other Express Transit cards can match with faster gate performance than the recently added Apple Pay China T-Union mainland transit cards.

New virtual Octopus cards can be created directly in Wallet just like Apple Pay Suica cards or added via the Octopus app (v6). Plastic Octopus cards can also be transferred to Wallet but cannot be used after transfer.

Some attached services are not supported. Be sure to check Important Notes to Customers before transferring a plastic Octopus. Another issue to be aware of is that the Octopus card number changes when transferred which can cause problems with some card ID# linked services.

Not Inbound Friendly
OCL limits Apple Pay Octopus card creation and recharge to having Hong Kong issue Mastercard, UnionPay and Visa cards already added in Wallet. It’s clearly not geared for inbound visitors. This is a shame because Apple supports global NFC on all devices which Samsung and Android devices do not, a key difference.

In practice this means any iPhone 8 and later from anywhere can use Apple Pay Octopus but only when a Hong Kong issue bank payment card is already loaded in Wallet. Suica is very different in this regard: it can be created and recharged in Wallet with any Apple Pay loaded card no matter the brand or country of issue, all without service fees. It’s a very inbound friendly deal for Japan visitors with iPhone.

Unfortunately OCL was limited by restrictive Hong Kong bank agreements and didn’t offer any Apple Pay inbound friendly solutions at the press event. Hopefully they will expand inbound bank card support down the road as banks realize the value of enticing tourists to use Hong Kong transit.

Octopus was the first real transit platform (contactless transit and eMoney) that had a tremendous impact on the development of other transit card fare systems around the world such as Transport for London Oyster. However, OCL needs to aggressively expand Octopus services on other mobile digital wallets like Google Pay especially as MTR moves to add QR Code payment Open Loop support.

Apple Maps Transit Integration
Hong Kong Apple Maps Transit directions launched in tandem with Apple Pay Octopus. It makes sense for Apple to offer both services as an integrated package as they did for the Apple Pay Suica. In Japan, Google Maps transit directions offer more detail and a better UI than Apple Maps Transit even though they use the same data suppliers. Your milage may vary but Google Maps transit directions for Hong Kong has been in place for some time and offers extras like crowding info. Another limitation shared with Apple Maps in Japan: no indoor station mapping.

Greater Bay Area Apple Pay Transit Compatibility
Apple Pay Octopus is the last piece of the transit puzzle that delivers Express Transit convenience to Greater Bay Area iPhone/Apple Watch users who, up until iOS 13.4.1, were limited to China Union Pay (CUP) cards without Express Transit and plastic Octopus cards.

The recently released Apple Pay China T-Union transit cards are interoperable transit cards that work across the country, some 257 mainland cities, similar to what Japan has with Suica, ICOCA, PASMO. China T-Union uses the PBOC 2.0/3.0 protocol, the Chinese variant of EMV with the slowest NFC transaction speeds, they are limited to UnionPay issue credit/debit cards for recharge and cannot be used for purchases. Octopus uses the faster FeliCa protocol and offers an open Apple Pay recharge backend for Hong Kong issue cards.

The advantage for wide area travelers is that they can now add both Apple Pay Octopus and China T-Union cards in Wallet. Having 2 different Apple Pay transit cards in Wallet may not be exactly the same as the dual mode Sold Octopus•Lingnan Pass but it should be close. It will be interesting to hear what the Apple Pay Greater Bay Area transit experience is like using both services.

Why the long wait?
There has been endless speculation regarding the reasons for the Apple Pay Octopus delay. Technically it could have launched on iOS 12 but was held back for an unbelievably long test period over 2 major iOS versions, running from December 2018 and iOS 12 all the way to May 2020 and iOS 13.5, the last major release before iOS 14.

Why? Personally I always felt the unexplained November 2019 Smart Octopus service outage was an ominous sign that OCL plans were under political pressure, though many will disagree. Other possible delay reasons include Apple Pay recharge card support and fee negotiations, and lining up Apple Map transit data. There’s no question that the go-slow OCL approach with constant tweaking of mobile and O! ePay services was not helped by the ever-deteriorating political situation.

The Apple Pay Octopus launch story was a long winding road with many ups and letdowns in the very difficult year of 2019. 2020 is also a very difficult year in a different way, though I hope it can still turn out to be a time of recovery.

I’d like to thank all the readers who shared Octopus tips and comments that let me report a complex, ever changing situation. I learned many things, the most important of which is that Hong Kong people are very kind and very smart. Wish you all a safe, healthy and happy transit wherever you go.

‘Redefining Mobile Payments’ June 2 press event invitation
Mobile Suica has a long history dating back to 2007. Mobile use growth had stalled until the Apple Pay Suica launch in 2016. Octopus on Apple Pay will likely drive a similar spurt of mobile use.

UPDATES

June 3 8:00 JST: Octopus issues apology, “Due to the overwhelming response to the launch of Octopus on iPhone and Apple Watch, some customers could not add their Octopus between 11:30 am and 12:19 pm on 2 June,” and compensating some Octopus users
June 2 12:00 JST: Octopus Card Limited site updated for Apple Pay Octopus and a press release
June 2 09:00 JST: Apple Pay Octopus page added to Hong Kong Apple site with instructions for creating, transferring and topping up Octopus cards in Apple Pay
June 2 03:20 JST: Octopus App v6 update released
June 2 01:50 JST: Apple Pay Octopus has launched, rollout expanding in stages
June 2 00:46 JST: Apple Pay Transit directions for Hong Kong appearing in advance of the Apple Pay Octopus

Rakuten Pay Suica

One year after the tie-up was announced, the Rakuten Pay Android app was updated yesterday and now supports adding a Rakuten branded Suica card and recharging that earns Rakuten Points, all done within Rakuten Pay. Each ¥200 of a recharge earns 1 Rakuten Point.

Outside of the Rakuten Pay app is confusing: red Rakuten Suica is only seen in Rakuten Pay but everywhere else it looks and acts like a regular green Suica (in Google Wallet, Mobile Suica, Osaifu Keitai app). But the Rakuten Point earning recharge is limited to Rakuten Pay app recharge which only sees the red Rakuten Suica and nothing else. Whew. Details are outlined clear as mud in the Rakuten Suica English press release.

Plugging Suica into the Rakuten Point empire is the whole point of the JR East/Rakuten tie-up but the current implementation is still missing an important point: free Suica recharges with Rakuten Points. This is promised in a future update. Up until now JR East has kept free Suica recharge exclusively for their own JRE POINT system where registered users earn JRE POINT with Suica then use points for free Suica recharge and Green Seat upgrades. The advantage for JR East is that Rakuten Point users outside of JR East’s transit region now have an incentive to use Suica for purchases and local transit as part of the Rakuten Payment experience.

There is no reason why Rakuten Suica couldn’t also work on Apple Pay but Rakuten probably wants to keep their branded Suica in their own app which is not allowed by Apple. Rakuten Suica would have to reside in Wallet just like the Mizuho Suica that recharges via its own app or Apple Pay. If Rakuten can live with that, Rakuten Suica has an Apple Pay future. For now, iOS users can earn Rakuten Points when recharging Suica with a Rakuten credit card but the sign-up process is convoluted and only good for 30 days before you have to sign up again.

Garmin Pay Suica aka Google Pay on iOS

Garmin Pay Suica went live May 21, effectively breaking the 4 year Apple Watch/Apple Pay Suica monopoly. As any Apple Watch user in Tokyo will tell you, Apple Pay Suica is the killer Apple Watch app. The real secret of course is Express Transit payments. Even now I get the occasional oh and ah from store staff when I hold Apple Watch up to the reader. They really appreciate the speed and social distance. So do I.

Since Garmin only does smartwatches, there are inherent limitations and big differences from Apple Pay Suica: (1) there is no way to transfer a plastic Suica to Gamin Pay, users have to create an account and a new virtual Garmin Pay Suica card, (2) Garmin Pay Suica does not support Suica Commuter Passes, (3) Garmin Pay Suica can only be recharged with Google Pay, (4) Garmin Pay Suica is limited to Japanese Garmin models, it is not global NFC like iPhone and Apple Watch.

Outside of that Garmin Pay Suica is a regular Suica with ‘Rapid Pass’ instead of Express Transit, different name, same thing. It can be registered for SmartEX and Ekinet Shinkansen eTicket travel. iOS users setup and recharge via the Garmin Connect Mobile app.

Garmin Pay Suica limitations limit its appeal for iPhone users who already have the full range of Mobile Suica service on Apple Watch. It’s a boon for Android users who have lusted after a Suica smartwatch. It very weird that it has taken 4 years for Android based device makers to even attempt matching the killer combo of Apple Watch and Apple Pay Suica. I hope Garmin works to improve the service and remove the limitations. Android users would really appreciate having the full Mobile Suica experience on a smartwatch.

UPDATE: there’s some gray area whether all Asian models support Suica or just the devices sold in Japan. I’ll update any discoveries here. Other limitations like Suica Commuter passes are also interesting and suspect they shed some light on the Google Pay~Osaifu Keitai relationship. In many ways Google Pay Suica is a UI skin on top of the Osaifu Keitai stack. In the case of Garmin Pay, no Osaifu Keitai stack means no Commuter Pass support even though it depends on Google Pay for recharge.

UPDATE: All APAC models support Suica

Out of Time

Is this the last time? Just a few thoughts as iOS 13.5 closes in on what hopefully will be a late May delivery, also rumored to be the launch iOS for Apple Pay Octopus. Recent beta test feedback says the minimal system for using Apple Pay Octopus was raised from iOS 13.2 to iOS 13.4.5 (rebranded by Apple to iOS 13.5). Also a new Schedule of Fees and Guidelines is due May 20. The Hong Kong Economic Times eZone site has taken this to mean that both iOS 13.5 and Apple Pay Octopus will launch on the May 20 Octopus Fees and Guideline update day.

The enthusiasm is understandable, but a similar situation happened in December with no launch. You might remember that Apple Pay Octopus was announced in July 2019, promised to launch “as soon as possible within the year,” in September, then delayed to “later in 2020” on December 19.

In short, hope for the best but don’t get your hopes up. We’ve been down this road before, but time is running out. If Apple Pay Octopus doesn’t launch in the iOS 13.5 timeframe, it’s not launching at all.

There aren’t any technical reasons for the delay; after all the Smart Octopus mobile service on Samsung Pay has been operating since December 2017 with Mobile SIM service before that. I believe it’s a result of the pressure politics facing Hong Kong, pressures both economic and governmental.

Octopus was the world’s first transit platform business that extended the transit smartcard to include payments and many other services but Octopus Cards Limited (OCL) has been slow extending the service to include mobile. Instead of putting early effort into digital wallet support for Apple Pay/Google Pay/Samsung Pay, OCL wasted time and resources developing the niche Mobile SIM product which really didn’t pan out.

This lag coupled with the rise of AliPay and WeChat Pay QR Code payment empires put enormous pressure on OCL to do something comprehensively mobile which it did with the O! ePay service in early 2019. But it’s not the only pressure: with so much traffic and business from the mainland, OCL owner MTR is looking to add QR Code Open Loop transit support (paywalled link) at some point. There is also the pressure of creating a Greater Bay Area transit card, and pressure from credit cards and banks. Every player wants a piece of the action.

Perhaps MTR gates will eventually look like the ones in Guangzhou with PBOC/FeliCa/QR Code readers supporting Octopus, China T-Union, AliPay/WeChat Pay, perhaps even EMV contactless bank cards:

At which point I say OCL doesn’t have a viable transit platform business anymore. Mainland China dumped the MIFARE based Beijing and Shanghai card architecture for their own slower PBOC 2.3/3.0 China T-Union standard, I don’t think it’s a stretch to see the same thing happening to Hong Kong Octopus at some point.

Supporters will undoubtably point out the technical merits of China using a single transit standard but that’s just a red herring. Smart devices and digital wallets handle all protocols and will continue to incorporate new technologies. The deciding factors will be good old money and politics: is it more profitable to keep Octopus in place or junk it in favor of QR and China T-Union, and who benefits from it all?

Octopus is living on borrowed time. If it doesn’t aggressively expand services on digital wallet platforms, it doesn’t have a future. Apple Pay Suica turned things around for Suica, let’s hope the Apple Pay Octopus launch can do the same for Octopus.


Apple Pay Suica had a huge impact on Mobile Suica use
Modern digital wallets like Apple Pay seamlessly support multiple payment technology protocols

UPDATE: on May 18 at 4:30 PM, an Octopus system glitch temporarily showed an option to add Apple Pay Octopus cards to Wallet to some iOS Octopus app users, but the feature not functional on the Apple Pay Wallet end. The glitch was quickly fixed but could be a sign that a service launch is imminent (edit: post glitch rumors say June 2).

The latest word from beta tester code leakers is that virtual Octopus creation and recharge in Apple Pay Wallet is limited to Hong Kong issue Mastercard, Union Pay and VISA. The May 20 Schedule of Fees and Guidelines update should show any changes for Smart Octopus (edit: “new restriction, 21 (cb), blocks the transfer of money from a Smart Octopus to O! ePay, probably to prevent the abuse of credit card cashbacks since service fees are waived for Apple Pay”).

PS: Barring the Apple Pay Octopus launch or official announcement, this is my last post on the subject.