Dear Apple and JR East, we need Apple Pay Family Suica

watchOS 7 Family Setup is a bigger deal than many people might think at first glance. Apple Cash Family is just one part of the service with transfers from a parent’s iPhone to a child’s Apple Watch. It’s the most compelling Apple Cash use case I can think of, and Apple Watch for children without iPhone is appealing to parents in a way that iPhone by itself is not.

I’ve always said that if Apple Watch ever gained direct Suica loading with parental controls, Apple could make a killing selling it into the Japanese education market. watchOS 7 Family Setup is almost there for the JP market but needs one more thing: Family Suica.

Next generation ‘Super’ Suica is coming early 2021 and next generation FeliCa is shipping in November. We already have digital car keys in Wallet that can be shared and Mobile Suica will be doing a lot more on the cloud with Super Suica. Apple and JR East have all the necessary new features they need to create an insanely great Apple Pay Family Suica.

The service outline is simple and combines what car keys do in Wallet with digital key sharing and Apple Cash Family does with transfers and limits. A master Apple Pay Suica ID is setup on an iPhone and manages family member Apple Pay Suica on other devices. The master ‘organizer’ would transfer stored fare (SF) via Messages and set spending limits just like Apple Cash Family does. Simple intuitive convenience.

Apple Pay Family Suica also needs transferable commuter passes. That way a parent can set one up for a child, transfer it to Apple Watch and renew it remotely. Transferable commuter passes would also be handy in our COVID teleworking era as working parents might not need a pass every working day. A “hey honey can I borrow your pass today,” thing that plastic transit card users do all the time.

So far nobody has managed to to produce a smartwatch that matches the super convenience of Apple Watch and Apple Pay Suica. If JR East and Apple produce Family Suica, they would effectively future-proof both next generation Suica and Apple Watch in the Japan market.

LINE Pay for Apple Pay

LINE Pay said years ago they would add NFC/FeliCa support if customers wanted it. Now that Apple Pay is gaining QR Code Payment support in iOS 14, LINE Pay announced Apple Pay support ‘in 2020‘ at the online LINE DAY 2020 (2:34:00 mark) media event today. The announcement has special meaning as LINE is the first QR Code payment player to announce Apple Pay support and did so before AliPay.

The timing makes sense now that iOS 14 is nearing official release, but Apple has not officially announced Apple Pay Code Payments yet though they may reveal something at the online September 15 Apple Event. Things will be damn awkward if they don’t.

There are lots of questions: will LINE Pay Apple Pay be a NFC/FeliCa + QR Code Payment in one Wallet ‘card’, or will it be the Apple Pay flavor of the Line Pay JCB prepaid card already on Google Pay that works on the FeliCa QUICPay network.

LINE Pay implied the intention of leveraging Apple Pay Code Payments and NFC but there isn’t much to go by at this point, except that LINE said Apple Pay will ‘complete the LINE PAY contactless payment platform.’ Whatever that means.

Now that LINE has made their Apple Pay move, PayPay is sure to follow. The trend to offer flexible NFC + QR payment solutions started with Toyota Wallet and will surely gain momentum with iOS 14 Apple Pay, especially with App Clips.

Smells like Super Suica: Sony unveils next generation FeliCa

Sony announced the next generation FeliCa chip on September 8. Next generation FeliCa was mentioned in the September 2018 next generation Suica, aka Super Suica, press release. This is the first glimpse into some of the new FeliCa features that Super Suica will use. The Japanese and English press released highlight different feature sets. A basic rundown:

  • Extended Overlap Service: different service providers can share additional services, while making the most of existing systems.
  • Value-Limited Purse Service: purse data can be set as a negative numerical value, and enables “Upper Limit Value” and “Lower Limit Value” to be specified.
  • FeliCa Secure ID: on the surface this cloud based service sounds exactly like the digital car key feature Sony and NTT Docomo demoed at the Docomo Open House back in January and exactly like Apple Pay Car Key sharing. Dare I say there seems to be more web service functionality that might relate to the NFC Tag Maas Suica hinted at by AquaBit Spirals CEO Tomohiro Hagiwara.
  • Additional Security Options: state of the art encryption, integrity protection option for ‘cost-balanced system solution use cases where higher priority is given to high-speed transactions while meeting the required security needs’. The new chip also complies with Public Transportation IC Card Protection Profile (PTPP).

The new hardware chip is NFC Forum Type 3 Tag compliant and works with NFC Forum certified devices.

As I explained previously, one big aim of Super Suica is sharing resources and services to reduce costs. Right off the bat Extended Overlap Service looks exactly what Super Suica wants to do: host other transit company commuter passes and reward points. The new FeliCa Japanese press release graph illustrates this, it almost looks like dual mode services in a single mode card. I think Super Suica is going to leverage the shit out of it.

Another interesting feature is the Value-Limited Purse Service. Super Suica will certainly get a stored value purse upgrade from the current ¥20,000 limit. I’m curious to find out if next generation Suica uses the new feature for additional stored value services.

One big question is when does FeliCa Networks upgrade Mobile FeliCa with all these new features and when do licensed developers get the goods. Sony and NTT Docomo already demoed Android Osaifu Keitai smartphones using FeliCa Secure ID and digital car keys with Ultra Wideband ‘Touchless’ in January. I think it’s safe to assume licensees get new FeliCa chips and upgraded Mobile FeliCa at the same time.

This is just a cursory overview. I have fingers crossed that FeliCa Dude will post something to Reddit that will delight and enlighten us when he has the time. In the meantime we have Apple Pay PASMO coming down the pike very soon in what I hope is a preview of more to come in 2021.

UPDATE
FeliCa Dude has posted an excellent overview on Reddit covering the new features and what they mean for operators. More than ever I am convinced that the big new marquee features, Extended Overlap Service and Value-Limited Purse Service will be playing major roles in Super Suica.

iPhone SE too popular in Japan?

Yes, as crazy as that sounds, but according to Kenta Yamaguchi’s piece on ASCII that’s exactly what is happening. The point of his story is that starting today, second brand carriers Y! mobile and UQ Mobile are selling iPhone SE instead of iPhone 8. Until yesterday they only offered the budget Apple Pay Suica capable iPhone 7 and normally they would offer iPhone 8, but iPhone 8 is nowhere to be seen in the budget lineup. Instead they are offering iPhone SE only 4 months after it went on sale at first tier carriers.

The big loser here is Rakuten Mobile who do not offer iPhone SE. Apple fully understands the ‘Face ID sucks in the face mask COVID era’ market opportunity, aka unfortunate success, that is the A13 Touch ID powered iPhone SE. Apple also wants many background NFC tag reading capable iPhones out there for iOS 14 App clips, so iPhone SE is going on sale everywhere.

Yamaguchi san says the SE is so popular that major carriers are bitching it will slowdown the 5G migration in Japan…while still selling as many iPhone SE units as they can. 5G will just have to wait until Apple comes up with a budget 5G Touch ID iPhone SE.

Hama Pay adds dual NFC/QR as iOS 14 Apple Pay QR payments loom

The recent Bank of Yokohama Hama Pay app update created some buzz with the addition of an Apple Pay iD Prepaid card option. It’s similar to the Toyota Wallet approach: the bank app links the user’s bank account to an open front end bank payment service with QR code payment for debit and credit and NFC payment for prepaid.

The difference with the Hama Pay prepaid card is that VISA JP issues the iD card which means it cannot be used internationally the same way that the Toyota Wallet Mastercard iD card can; Mastercard supports iOS NFC switching, VISA JP does not.

Another weird thing: the Hama Pay ad blurb uses the ‘Touch Payment’ branding phrase with iD. Up until now VISA JP reserved that exclusively for EMV contactless card issue but not for FeliCa cards, which of course iD is. Does this mean VISA JP will finally sign with Apple Pay? Probably not.

The Toyota Wallet also uses a QR+NFC frontend

IT journalists approach the story as a NFC vs QR dilemma for banks, but I don’t think this captures the whole story. iOS 14 Apple Pay is adding QR code payments for the first time and this means that QR Code Wallet payments don’t need to launch an app, they will work directly from the lock screen just like any Apple Pay card.

This represents a big evolution of Apple Pay from NFC only to an open front end approach that includes NFC, Code payments and Ultra Wideband. It will be very interesting to see how bank apps evolve in the iOS 14 era as we move away from the plastic era ‘A vs B’ mind set to the bewildering variety of ‘A~Z take your pick’ era of mobile payments. We still have the Apple Pay/Face ID with face mask passcode nonsense…but that’s another post for another day.

iOS 14 Apple Pay is adding Ultra Wideband and QR into the mix