iOS 15: A12 Bionic fine print features

Japanese media reaction to Apple’s WWDC21 Keynote was a big ‘meh’. Not surprising as many iOS 15 features won’t be available for Japanese iPhone users who are well acquainted with being a 1st tier market for selling Apple hardware but a 3rd tier market afterthought for Apple services. They also probably read the iOS 15 preview website fine print at the bottom of the page, every other line reads: available on iPhone (XS/XR) with A12 Bionic and later. Bottom line: to run all the iOS 15 bells and whistles you need iPhone XS and later. Here’s the list of iOS 15 features that require A12 Bionic and later:

  • FaceTime: Spatial audio, Portrait mode
  • Wallet: Car keys, Home keys, Office key, Hotel key and ID in Wallet (listed as iPhone XS and later instead of A12 Bionic for some strange reason, Home key and Office Key ‘coming in a software update to iOS 15’)
  • Maps: Interactive globe, Detailed new city experience, Immersive walking directions
  • Live Text
  • Siri: On-device speech processing, On-device personalization, Offline support, Fast on-device processing,
  • Dictation: On-device dictation, Continuous dictation
  • Weather: New animated backgrounds
  • Health: walking Steadiness

There appears to be a mistake that lists iPhone XS for UWB car keys. It should read iPhone 11 and later for UWB Car keys with remote keyless entry controls.

The A12 Bionic and later requirement for Wallet keys is easy to understand: Express Cards with power reserve. It is vital that people can unlock car and home doors even when their iPhone battery is out of juice. Up to 5 hours of power reserve makes a huge difference and it even works with UWB car keys, a surprising new development I hope to examine in the next post. Note the plural name difference: Home keys can be shared like Car keys. Hotel key and Office key are only for one.

The new Wallet car keys feature is rumored to be coming from Toyota, Honda and Nissan but nothing has been announced even though NTT Docomo demonstrated UWB car keys in action last January. Likewise there are no local 3rd party announcements regarding home keys and office key but the FeliCa and MIFARE support that comes standard in iPhone 8 and later makes it easy to implement local digital key services for Wallet. The Japanese My Number ID digital card is due to launch on Android Osaifu Keitai smartphones in 2022. The Ministry of Internal Affairs and Communications who oversee the project have said they are in discussions with Apple to bring My Number ID card to Wallet.

For Japanese iPhone users however there are many features that just won’t matter because they won’t be available. The gap between services announced for USA/Europe/China is wide and can take years to make it to Japan. For iOS 15 a comparison looks like this:

Live Type for Japanese will be sorely missed, Weather maps is a tossup, Apple Maps JP is the usual mess. However even Japanese locations get the completely new cartography design unveiled in iOS 15 beta 1, the first real makeover since the 2012 launch. Only A12 Bionic and later devices get the full range of redesigned cartography but even on older devices iOS 15 new city maps do a nice job of minimizing the previous mess of orange, blue, red, brown Point of Interest clutter. Unfortunately the new cartography also has some major weirdness:

The new iOS 15 map cartography touched off an interesting Twitter thread:

A: Maps are supposed to be a reflection of reality. I’m sure they wouldn’t show a curve in a road that is straight in real life, so why put curves on square buildings? How can someone at Apple look at this and think “These curves sure do make usability better!”

B: As a counterpoint for discussion, where does “reflection of reality” fit with tube/metro/underground rail maps (eg. London, Tokyo)? I think ‘realistic’ and ‘accuracy’ are two different things for maps. As for thinking the style choices are useful and aid comprehension, well🤔

C: With iOS 15 emphasizing 3D/AR viewfinder navigation for pedestrians, I’m definitely expecting my square buildings to stay square and round buildings to stay round. Otherwise the feature will be useless for me!

B: Ok, now this is a use case that demonstrates the problem in the design choice🙇‍♂️👍

I plan to cover iOS 15 Apple Pay and Apple Maps in detail after WWDC21 wraps this week.

Instant issue for Apple Pay Edy, nanaco, WAON?

A fun mockup of Wallet add card options for Edy, nanaco, WAON that will probably never happen. If they come it will be digital issue via apps.

Now that VISA JP finally signed with Apple Pay, what about the last holdouts: Edy, nanaco and WAON? These have been on Google Pay for some time but like all things Google Pay Japan, it is courtesy of Osaifu Keitai rather than native Google support. Apple was smart to go for Suica first, then PASMO (which has yet to appear on Google Pay) but it’s time to complete the Apple Pay Japan lineup.

Google Pay Japan has 2 basic categories for adding cards: EMV bank payment cards (AMEX, JCB, mastercard, VISA) and Japanese eMoney cards (Suica, Edy, nanaco, WAON, iD, QUICPay). In other words, Google Pay arranges cards by NFC flavor. This is because many Android devices sold outside of Japan don’t include FeliCa even though they have the hardware to do so. Google Pixel 5 for example has Mobile FeliCa installed on every single device it sells, but only activates it for Japanese models. Perhaps this will change with Pixel 6, we will see.

Apple Pay doesn’t make a distinction between NFC flavors, just one global NFC. No EMV or FeliCa bank payment cards, just payment cards, period. Apple also encourages Japanese bank card issuers to use the NFC switching and dual mode features of iOS and watchOS Wallet for seamless use on any payment reader in Japan or abroad. The same thing applies to Wallet transit cards. Wallet can have multiple Express Transit cards and juggle between FeliCa (Suica, Octopus, PASMO) MIFARE (SmarTrip, Clipper, TAP) and PBOC (China T-Union cards).

So what is the Wallet category for non-transit stored value prepaid payment cards? I have no idea but for this exercise I’ll use eMoney (電子マネー). Apple Pay has everything in place to flip the switch since 2016, what’s the holdup? There’s a big problem using the Suica add card Wallet process for eMoney cards. This problem is on full display with Google Pay WAON: the user has to create an WAON account in Google Pay to add it. Worse, if the user deletes the WAON card they loose the Google Pay created WAON ID and card balance.

I don’t think Apple wants this ‘create an account’ nightmare scenario in Apple Pay, that’s what apps are for. Fortunately we have a growing collection of ‘instant issue’ apps for adding cards to Wallet and digital issue only is quickly becoming standard for Apple Pay Japan debit/prepaid cards: kyash, Minna no Ginko, Toyota Wallet, etc. The digital issue app model is perfect for Edy, nanaco and WAON who want to be collecting accounts instead of selling plastic prepaid cards. They already have iOS apps. Leave the account creation and management drudgery in the app so users curse the app instead of Apple Pay. Once done the user taps ‘Add to Wallet’ and presto, instant WAON all ready to go with direct Wallet recharge. Other bonuses: (1) instant issue apps eliminate ‘I wanna transfer my plastic card to Wallet’ overhead, (2) if anything goes wrong and the balance is lost, it’s the fault of the app, not Apple Pay. Keeping things simple and streamlined is key for a good Apple Pay user experience, one more Wallet reboot challenge for iOS 15.

Japan mobile payment survey results

I gave the Twitter survey function a workout and asked 2 questions:

  • Which Japanese mobile payment do you use most?
  • Which Japanese reward points do you use most?

The results are not surprising but come with many caveats: the survey sampling was puny, in English and pretty much limited to a small group of Twitter followers, which means they are pretty much already invested in Mobile Suica. Also it is important to remember that mobile payment use profiles in Japan are highly regional, what’s convenient in Tokyo isn’t necessarily convenient in other areas. That said, there are some interesting and fun takeaways.

Japanese mobile payment takeaways and feedback

  • The 55% Suica/PASMO figure expresses the power of Apple Pay Express Transit (and similar for Osaifu Keitai) for store purchases in the COVID induced face mask era without the hassle of Face ID. It’s important to remember that the ballyhooed Unlock with Apple Watch Face ID feature introduced with iOS 14.5 is useless for Apple Pay authorization. Remember too that Mobile Suica has good support on wearables: Apple Watch, Garmin, fitbit, etc., the widest mobile payment platform in Japan.
  • Despite the heavy marketing VISA Touch from VISA Japan, the majority of users have been using Apple Pay and Osaifu Keitai for iD and QUICPay, etc. I suspect EMV ‘Touch’ (Visa, MC, AMEX, JCB) probably appeals more to plastic card users as VISA is pushing EMV only plastic cards vs. digital wallet dual mode Apple Pay.
  • QR Code payment apps (PayPay, dBarai, LinePay, etc.) are not as popular as you might think and are probably feeling the pain of recent bank account linking security problems, and the recent revelations of user transaction records being stored outside of Japan.

Changes quite a lot. Recently using EMV touch a lot because of SMCC 15% back campaign and Amex 20% at FamilyMart. Otherwise probably a little bit of everything just to get maximum reward. (Tokyo)

I don’t ride trains so I have no real use for Suica. Using it to pay in shops is too much of a PITA since you have to constantly recharge it. (Kagoshima, note that Suica Auto-charge only works in JR East transit region)

I do iD for the point rewards (none in JP CC recharge of Suica) otherwise Express Transit is perfect. (Tokyo)

Mostly Suica (via Garmin Pay), but I’ve been using au Pay (QR or barcode) a lot more recently. (Hiroshima)

Japanese reward point takeaway
Results are complicated. Twitter surveys are limited to 4 choices, I lumped the Japanese carrier reward point systems for docomo, au and SoftBank (dPoint, au•PONTA, T-POINT) into one category, the top choice at 43%. However if we break down the carrier number by carrier marketshare ratio we get the following:

  1. 21% JRE POINT
  2. 28% Rakuten POINT
  3. 19% dPOINT
  4. 14% au•PONTA POINT
  5. 10% T-POINT
  6. 8% V POINT

The key takeaway for reward points is the power of the Rakuten ‘Economic Zone’, i.e. where all the Rakuten pieces including shopping, banking/credit card/payments, transit (Rakuten Suica), mobile, stock trading, travel, etc., are glued together by Rakuten POINT and feed off each other. The Rakuten Economic Zone is the model that others will have to successfully emulate if they are going to be serious long term competitors. NTT docomo announced a tie-up with MUFG this month, the digital banking wars are just getting started.

The VISA JP Apple Pay announcement and digital banking wars

MacRumors: Customers with Visa cards…will be able to add their card to their Wallet on iPhone and Apple Watch.

Me: I like MacRumors but the writer here has no idea what the story is or that users have been using these cards in Apple Pay all along for store purchases.

MacRumors: Hey! Could you elaborate on what you mean? Visa cards issued by those banks now have Apple Pay, correct?

Sure Sami, here’s the elaborate story. Do you know FeliCa? It’s the Sony created NFC standard that has been around a long time, long before EMV grafted NFC into contactless credit cards. When mobile payments launched in Japan back in 2004, Mobile FeliCa was the only technology that worked. So mobile payments for all major credit cards and Suica were built on Mobile FeliCa, the contactless payments infrastructure in Japan grew from that.

Fast forward to 2016. Phil Schiller announced FeliCa for iPhone 7 at the keynote and the launch of Apple Pay in Japan. VISA Japan didn’t sign an agreement with Apple but it didn’t matter much because VISA JP cards were available for Apple Pay thanks to previous Mobile FeliCa agreements covering the iD and QUICPay networks for store payments. The other card companies (Mastercard JP, JCB, American Express JP) signed with Apple.

It was a big success. But the Mobile FeliCa agreements only covered store purchases, they didn’t cover things like in-app purchases. Even though many Japanese users added their VISA cards to Apple Pay they couldn’t use them to recharge Suica cards because in app purchases were not supported.

Fast forward to 2020. VISA JP is a major sponsor of the Tokyo Olympics showering sponsorship money to promote ‘VISA Touch’ EMV contactless cards. They want customers to use VISA Touch at stores, not iD and QUICPay because the margins are nicer and EMV contactless is a world standard except for places like Japan (FeliCa) and China (PBOC). Most of the POS equipment in Japanese stores is multi-protocol ready so the customer NFC flavor is a moot point. For whatever reason, let’s say marketshare, VISA JP finally signed on with Apple Pay.

What changed for all those VISA JP cards already working in Apple Pay Wallet these past few years? A VISA logo, in-app payments, dual mode NFC and Payment card Express Transit:

Did you get that Sami? Hello, anybody there?

Digital Banking Wars
Seriously though, it’s sad when tech writers don’t understand the technology in the stories they write. All major Apple sites ran the same wrong story. It should have been: Visa JP Cards now fully support Apple Pay. I think journalists do everybody a great service when explaining complex stories and connecting the dots in easy to understand ways. Nobody cares, which is a shame because there were other major things going on behind the VISA JP Apple Pay announcement that even the Japanese tech media missed: the very same day, NTT Docomo and MUFG announced a joint digital banking venture.

Let’s take a closer look at that VISA JP Apple Pay announcement, specifically the issuer launch list: APLUS, Cedyna (SMBC Financial), SMBC, Docomo, MICARD, Saison, JACCS, Rakuten. Do you see MUFG? Nope. MUFG brand VISA cards will join at some point, probably, but VISA has put all their eggs in the SMBC basket, the companies are not on the friendliest of terms.

NTT Docomo and SMBC/VISA group feuded for years and called a stalemate. It was only a matter of time before NTT Docomo kicked SMBC to the curb, which they did yesterday with the MUFG joint announcement. Docomo and MUFG are going to leverage dPoint into an economic zone to rival Rakuten and SMBC/VISA V Point. It’s as simple as that. And here you thought that VISA JP announcement was only about Apple Pay. Think again, the economic zone mobile digital banking wars are just getting started.

One last bit: if you want to know the reason why it took so long for VISA JP to sign with Apple go to the SMBC V Point App page and look at the Apple Pay • Google Pay section. ApplePay is dual mode, Google Pay is EMV only. It was the power play we suspected all along: VISA wanted to kill FeliCa, Apple stuck to its NFC switching dual mode guns. For a detailed list of VISA JP cards and supported features go here.

Japan’s new economic zone: Rakuten

The April 30 addition of iPhone 12 lineup to Rakuten Mobile marked the transformation of Rakuten Mobile into a first tier carrier on the same level of Docomo, KDDI au and SoftBank. Now that SoftBank is taking Rakuten to court over allegedly stolen SoftBank corporate secrets, I think we know who is feeling the pressure. It is the end of an era. SoftBank was the first carrier to launch iPhone in Japan back in 2007 when NTT Docomo refused and KDDI au could not (the Verizon iPhone problem). They cleverly used iPhone to leverage their position from an industry also-ran into a serious first tier carrier grabbing marketshare for the other majors.

Rakuten Mobile is now playing the hungry upstart with fresh ideas and aggressive plans: pay for what you actually use instead of paying for a monthly allotment just like the good old land line days…how original. Nevertheless SoftBank feels threatened not only by Rakuten Mobile but the total weight of the Rakuten Empire: Rakuten Pay which encompasses Rakuten Edy and Rakuten Suica, and most of all, Rakuten Point.

SoftBank has similar parts, PayPay and TPoint/TMoney, but they are not well integrated across the SoftBank empire and more importantly, they don’t have the synergy of Rakuten. That’s why people in their 20~40’s are sometimes referred to as living in the Rakuten economic zone, leveraging Rakuten Point as currency ‘plus’ to make their real money go much farther for all of their needs.

But there’s one more thing. Now that Rakuten Mobile has the full iPhone lineup, it’s only a matter of time before Rakuten Edy and Rakuten Suica join Apple Pay. That is SoftBank’s true nightmare.