Apple Maps Japan Look Around Expands to Hiroshima, Fukuoka, Takamatsu, Nara

Apple Maps vans and walkers were busy in Japan from May to October 2020 and the first cites to receive Look Around from the data sets are: Hiroshima, Fukuoka and Takamatsu. This is not part of the Apple Maps 2.0 ‘New Maps’ cartography that has rolled out in USA, Canada and UK, just the same lousy IPC map data with a Look Around cherry on top. According to Justin O’Beirn these were added in mid-December.

In addition to new areas he lists, the Look Around Tokyo area region has been extended deeper into the greater Kanto area with more Chiba, Saitama and Kanagawa coverage, though I don’t see any pedestrian data gains in areas that need it (major shrines, temples, parks, and other public areas off limits to vehicles). In the Kansai area, southern parts of Osaka and Nara have been added as well.

At this rate we should have Look Around additions for Sendai, Ishikawa, more Kanto and other regions coming soon. Apple Maps Look Around first appeared in August 2020 for Tokyo, Nagoya and Osaka regions from data collected in 2019.

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Starbucks officially adds Suica contactless payments…finally

Apple Pay Suica/PASMO finally joined the official Starbucks payment lineup, something that many people have wanted for a long time. Nothing beats Apple Pay Suica Express Transit for grabbing coffee on the run.

I knew something was coming when Panasonic JT-R600 all-in-one readers appeared in Starbucks stores starting last summer. Initially these were for EMV chip cards and came with ‘please don’t forget to remove your card’ reminder stickers. EMV contactless is missing though I suspect it will come at some point. Other FeliCa contactless payments such as iD, QUICPay, Waon, nanaco, and Edy are also missing. Line Pay QR is accepted at some store locations but remains limited for now.

Suica/PASMO (and other eMoney like Waon) has been accepted for years at Starbucks locations in stations and malls where tenants integrate payment+reward point systems provided by the landlord. Suica/PASMO support is not native however and bolted onto the Starbucks checkout system. For JR East station area locations tied into the JRE POINT system this means double entry Suica payments: once for the Starbucks checkout and once more for the Suica/JRE POINT payment reader. This will remain in place until JR East and other retail landlords (PAMSO, etc.) come up with a better system for integrating JRE POINT (etc.) with Starbucks’ native Suica support. The big takeaway is that Suica/Transit IC is officially supported and earmarked for all locations.

Contactless payments are a welcome step forward but I wish Starbucks integrated their own reward points via NFC VAS instead of barcode in Starbucks app nonsense. That way I could get JRE POINT and Starbucks point with a single Apple Watch Suica tap at JR East station Starbucks locations without the hassle of iPhone Face ID with face mask. And while we’re on the subject of NFC VAS reward point cards…JR East hurry up with that JRE POINT card for Apple Wallet please.

UPDATE
Starbucks is running a ¥100 One More Coffee refill campaign with Suica/Transit IC purchase from January 13~June 30, a ¥50 discount. A good reason to kiss the iOS Starbucks App barcode thing goodbye for the duration and use Apple Pay Suica/PASMO Express Transit instead.

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Smart Navigo launching on Apple Pay in February (Updated)

Smart Navigo, the Paris~Île-de-France region digital transit card for mobile, currently on Galaxy devices and Android smartphones with Orange SIM cards, is reportedly coming to Apple Pay in February. Although France was an early innovator of NFC on mobile phones, it did not lead to early mobile transit adoption: Smart Navigo launched in September 2019. Apple Pay Navigo would be the first native transit card (closed loop) for Apple Pay in Europe, it would also be the first smart wearable for Navigo users thanks to Apple Watch. The Calypso based Navigo transit card launched in 2001 and had a large upgrade in 2019 to add more transit services and mobile.

Navigo operator Île-de-France Mobilities has reportedly been in talks with Apple ever since Smart Navigo was first announced in 2017. At that time they said:

“Unfortunately, it won’t be possible for iPhone owners to use the service since Apple does not yet allow third parties to access the NFC secure element in their phones. However, we are happy to explore the possibilities with Apple to offer the same service to all Paris public transport users.

Apple has a uniquely flexible custom embedded Secure Element (eSE) in their A/S Series chips that can be updated to support additional NFC protocols. Calypso is an open protocol that uses NFC-B, it would join the other major Apple Pay protocols, EMV (NFC-A) FeliCa (NFC-F) and MIFARE (NFC-A), that are all proprietary. There isn’t any technical difficulty adding new transit cards. It’s a matter of negotiation and deal making, which can take time.

Apple usually likes to roll out new transit cards following an iOS update. iOS 14.4 would fit a February launch window. There are also reports that Apple Pay Code Payments are working in recent iOS 14.4 internal builds. If all of this pans out, iOS 14.4 could be an important update for Apple Pay users, especially in France.

UPDATE
01 News reports that iPhone users will be able to reload Navigo cards for day/weekly /monthly passes with an updated ViaNaigo app using NFC starting January 20. This is an important first step of implementing Apple Pay support in advance of the full Apple Pay Navigo service launch due in February and confirms the earlier Le Parisien report. It also follows the 2020 Apple Pay Octopus rollout which saw an updated iOS app with iPhone NFC recharge feature released before the service launch.

UPDATE 2
January 13: The updated iOS Ile-de-France Mobilités app (previously ViaNavigo) with NFC reload for Navigo cards was released. iPhone 7 and later devices are supported as this follows Core NFC device specs, however iPhone XR/XS support is missing in the initial release and said to be addressed soon. Developers say this is due to longstanding Core NFC bugs. There is also an issue with iPhone SE2 that needs to be restarted to work properly. No word if the iOS 14.4 update will fix the issues or not.

2021 Outlook: Apple Pay Code Payments and Multi-Payment Wallet Cards

A happy new year to everybody. When reading Junya Suzuki’s year end Apple Pay and contactless history in Japan article, I was irritated by its ‘rah rah for open loop’ ending that seemed to conclude EMV isn’t very slow and tap speed differences don’t really matter. After reading followup tweets with other IT journalists I realized that wasn’t his point at all. What Suzuki san was really saying was the total transit gate experience counts more than any particular technology package (MIFARE, FeliCa, EMV Open Loop, etc.).

Steve Jobs said the same thing about technology and products in the famous, “you have to start with the customer experience and work backwards to the technology,” 1997 WWDC video. In other words, the whole (the product) has to be larger than sum of the parts (the technology pieces that make up the product) to be a success. It’s all about how they integrate as a product into the larger whole ‘vision’ thing. JR East transit gates are great because the total experience is greater than sum of FeliCa, Suica, JREM reader and gate design technology parts added together.

When it comes to payments however it’s not just about technology, it’s also the raw power plays going on behind the scenes. In the same article Suzuki san nonchalantly mentions that NTT Docomo dCard, which SMBC has issued and operated since the very beginning but in open warfare with Docomo these past few years, is dumping SMBC for UC Card group (Mizuho) this year.

There is also constant pressure to eliminate Japanese FeliCa contactless payment networks in favor EMV using the old bait and switch tactic of promoting a proprietary industry standard when the real end game is eliminating local competitors. These are issues that few journalists bother to analyze deeply and also what got Jack Ma in trouble when he blasted the Basel Accords, the traditional banking system, as an exclusive old men’s club that stifles innovation.

Power games in the world’s greatest free-for-all payments market
I’ve said this many times but one of the great things about Japan many western journalists completely miss, is that Japan is the world best guinea pig test market. Especially useful for observing new payment trends at work. The market is a perfect not too big not too small size, super cohesive, and it has a long history of Osaifu Keitai mobile payments with a wide foundation of payment technologies encompassing FeliCa, EMV and QR. And there is lots of money sitting in bank accounts. This unique mix affords the careful observer a virtual front seat on the power games playing out right now after the introduction of QR based payment services like Line Pay, PayPay and dBarai (dPay).

When Docomo unveiled their dBarai app service it confused many users. What was the point of using code payments when Docomo already had dCard and the whole Mobile FeliCa iD network in place for promoting contactless payments? But it wasn’t long before Docomo linked the 2 payment services together. dBarai users can pay using 3 different backend payment choices: direct dCard billing, monthly Docomo billing, a rechargeable stored value dBarai account with cash recharge options via ATM or linked bank account.

From the user point of view it doesn’t matter when they pay with a Docomo code payment app tied and charged to their dCard on the backend, it’s the same monthly bill. But to Docomo it is very different: instead of using the iD or SMBC VISA/MC payment network on the front end, it’s the Docomo dBarai payment network. I suspect Docomo pays less of a transaction cut to the bank because they have the cash flow to assume some of the risk that banks usually assume in establied credit card network transactions. Docomo likely also leverages the daily transaction float. In short the AliPay model. The next logical step for Docomo dBarai will be P2P payments that leverage Docomo’s Mercari connection.

The value of code payments in dBarai isn’t the technology, it’s a expedient tool that Docomo leverages to circumvent the limitations and fee structure of banks and card networks to create their own flexible payment network. This wiggle room is the essential margin that drives QR Code payment empire cashbacks, point giveaways and new services. This is the epicenter of the cashless payment turf wars that pits new mobile payment players against established card and bank networks. And Apple is about to dump delicious chunk bait into this shark tank.

The Toyota Wallet multi-payment model
In the Apple Pay 2020 wrap-up I mentioned Toyota Wallet as the most important trend: a Wallet app that lets users pay with a QR code or with NFC via an instant issue prepaid Apple Pay Wallet card. The Toyota Wallet iD/Mastercard has 2 Apple Pay device account numbers, one for the iD payment network and one for the Mastercard payment network. This is common for most Japanese issue payment cards on Apple Pay but it is less about NFC protocols (FeliCa, EMV) and all about dual payment network support in a single payment card. And it is not limited to Japan. In Australia there are dual payment Apple Pay cards that support both Mastercard and EFTPOS payment networks in a single card.

With Apple Pay Code Payments on the way, possibly with iOS 14.4, we have another option for multi-payment network cards: code payment and NFC payment. Apple Pay Code Payments are thought of as being only for AliPay and WeChat Pay support in China, but they are much more than that.

Apple Pay Code Payments gives mobile payment players the ability to move QR/barcode payments from an outside app and integrate them directly into an Apple Pay Wallet card. In the Toyota Wallet example below, Toyota could simply add another device account number for the QR Code payment network:

This might seem trivial but it’s important to remember some key differences of Wallet payment cards:

  • Direct side button Wallet activation with automatic Face/Touch ID authentication and payment at the reader.
  • Device payment transactions handled by the eSE without a network connection.
  • Ability to set a default main card for Apple Pay use.

If Apple Pay Code Payments are equal with Apple Pay NFC payments, and by all indications from beta screen shots they are and use the same ‘card’ UI metaphor, I think we are in for another wave of Apple Pay market disruption. Instead of NFC vs QR Codes, or Apple Pay/Google Pay vs apps, all of it just red herring fake debate, we can focus on what’s real: the payment network turf wars.

In the Japan market Line Pay, PayPay, dBarai, Rakuten and all other new players will have the tools to create better services tightly integrated in a Apple Pay Wallet card. Docomo for example could incorporate dBarai into dCard with an additional device account number. Mix and match payment networking in one card.

In the payment network world where market share is all, card networks have held too much power for too long, exactly what Jack Ma was complaining about. I see competition as a good thing that encourages innovation and choice, mobile payments are doing that.

Looping back to the open loop beginning of this piece I think it makes sense now to realign the debate points away from focusing on technology (EMV vs FeliCa, NFC vs QR, etc.), i.e. things that can change and evolve, and focus on payment network turf wars, i.e. things that are hard to change until you see the battles lines clearly enough to create a better strategy and get where you want to go.

In the public transit arena it always comes down to this. Moving people quickly and safely by transit, managed wisely, is licensed cash flow from the fare gates. A transit company can keep control of that license to build something of greater long term value for the users and businesses of the transit card region, which can cover the nation. A transit company can give control away to someone else and let them take their cut, but just like Jack Ma pointed out before he disappeared, will there be innovation when going all in with traditional card and bank payment networks?

I still say a transit platform, especially in the mobile era of chaotic opportunity, is the best approach if a company wants to achieve the former: a system where the whole is greater than the sum of the parts. Start with the best customer experience you want to deliver and work backwards to the technology.

Apple Pay Japan 2020 Wrap Up Wish List

A two word summary for people in a hurry: COVID and PASMO. As everybody in Japan knows at this point, COVID drove cashless payment use more than any government program could, or anything else for that matter. Cashless went from being the perennial ‘next big thing’ to first choice at checkout in a surprisingly short time with a growing number of ‘cashless only’ places. Here’s a short recap of the best and worst all things Apple Pay Japan in 2020.

The Worst: Face ID Apple Pay
COVID meant mandatory face mask wear outside the home. iPhone Face ID users outside of Asia quickly learned that Face ID and especially Face ID Apple Pay really sucks with face masks. Apple tweaked Face ID slightly to alleviate the issue but this is a long term problem with no short term workaround. Apple had the foresight to resurrect Touch ID in iPhone SE 2, the right device coming at the right time. For the time being it will hold up the middle and lower range iPhone user base in Japan. Face ID is such a marketing embarrassment right now that Apple only features Touch ID recharge on the Apple Pay PASMO page. The real short term future proof Face ID Apple Pay fix is Apple Watch.

The Biggest: Apple Pay PASMO
Mobile PASMO finally joined Mobile Suica, first on Osaifu Keitai Android then Apple Pay, the biggest and most important launch for Apple Pay Japan in 2020. Suica and PASMO combined represent 80% of the entire transit IC card market. In terms of pure usability, a large and diverse installed base, with Express Transit powered transit and purchases on iPhone and Apple Watch, PASMO easily beat all other Apple Pay service rollouts this year. Apple had VIP execs and foreign media on hand at the press event, something they haven’t done since the Apple Pay Japan launch in 2016.

The Most Influential: Toyota Wallet
The Toyota Wallet App rollout I wrote about a year ago turned out to be the model everybody is doing now: ‘XX Pay’ or ‘XX Wallet’ app consisting of a user account linked to a bank or credit card with a flexible payment dual mode front end offering QR Code payment via the app and a ‘instant issue’ prepaid card in Apple Pay Wallet. The Apple Pay Line Pay card launched on December 22 is the exact same model. Instant app issue debit and prepaid Wallet cards do away with plastic issue costs and lower the user entry bar, amount other things. Expect more of this in 2021, actually expect everybody to do this in 2021.

The WildCard: App Clips
iOS 14.3 App Clip Code support completed the picture for App Clip developers, but it will take time to see how they play out in a market overcrowded with mobile payment options. I think there is always a chance for a low cost high quality service which intelligently designed App Clips can deliver. The key will be solving the Japanese Softcream Cashless Index (SCI) Challenge: can App Clip cashless do a faster more reliable job than good old food ticket vending machines, without an app and without an account? How streamlined can it be and still be an App Clip? I hope we can find the answers to those questions in 2021… but there’s one more thing.

The Missing: Apple Pay Code Payments
The iOS 14 Apple Pay AliPay/Apple Pay Code Payment has been in open secret test mode for nearly a year with no firm release in sight. If screenshots are anything to go by, Apple Pay Code Payments are done with a virtual Wallet ‘card’ like any other and Apple Pay Wallet cards have certain properties:

  • Direct side button Wallet activation with automatic Face/Touch ID authentication and payment at the reader.
  • Device transactions handled by the eSE without a network connection.
  • Ability to set a default main card for Apple Pay use.

Supporting QR Code payments with an Apple Pay Wallet ‘card’ moves QR payments out of the app and removes some, but not all, of the QR payment friction points. It makes App Clips a better user experience too when all payments can be accomplished with Apple Pay.

Ultimately I hope the Apple Pay Wallet card model moves away from single mode technology and evolves to multimode awareness that encompasses NFC, Ultra Wideband, QR, etc. It has too. Our smartphones must be smart and take care of any payment technology for us. They have to because things are only going to get more complicated. People ridicule the Japanese payments landscape but that will be everywhere. Card companies and banks push EMV as a ‘global standard’ but EMV already comes in different flavors like PBOC, so does NFC (NFC A-B-F-V), and Ultra Wideband is joining the mix.

That’s what digital payments are all about: combining complex things into ‘it just works’ simplicity. Anybody can create or load a Suica, Octopus or PASMO into Apple Pay, without signing up or creating a new account, and start using it for lots of different instant payments. That’s how simple it should always be. That’s my 2021 Apple Pay wish.

Best wishes for a happy and safe 2021.

UPDATE: Reader Apple Pay Wishes for 2021

>Mine would be for VISA Japan to support Apple Pay.

>Mine are resurrecting #FeliCa-based @VisaJP TOUCH (can be rebranded), @id_credit re-attempts @ #FeliCa network expansion overseas starting w/ equipping end-users w/ the technology in new card distribution (via digital & physical), & @JCB_CARD expands @QUICPay_PR network overseas.