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.

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.

SEIYU Stores finally add NFC payment support for Apple Pay Suica • PASMO

That didn’t take long. The announcement Walmart was selling majority control of SEIYU over to KKR and Rakuten was made November 16. And what was the first new management move? Adding Suica and Transit IC payment support which means Apple Pay Suica • PASMO and Google Pay Suica can finally, finally be used for paying at checkout. QR Code PayPay has been in place for awhile already. SEIYU also rolled out a new system recently for self checkout and EMV IC chip payments for SEIYU brand Saison cards (other cards have to be signed…yuck). NFC anything has been entirely missing from the SEIYU payments lineup despite the COVID crisis and a huge push for all things cashless, but Walmart has a long antagonistic history with NFC digital wallet payments.

I only noticed the change this evening when I heard the store announcement over the PA. Sure enough Suica signs were plastered at every checkout. It’s weird but somehow fitting that SEIYU is soft launching long overdue NFC contactless payments with Suica. More will come. I’m sure Walmart leaving town had nothing to do with it. Yeah, nothing at all. SEIYU stores were much better under the pre-Walmart Seibu management. Hopefully this marks a return to better service and clean modern stores.

JR East Ticketless Touch and Go Shinkansen expanding system wide

The yellow area is new

Another day, another Suica related announcement. JR East ticketless Touch and Go Shinkansen service for Suica and other compatible Transit IC cards will be expanding in March 2021. It will basically cover all Shinkansen lines directly managed by JR East. Previously it only covered the Kanto region. Touch and Go differs from Eki-Net Shinkansen eTickets in that Touch and Go uses the Suica balance for Shinkansen fare, eTickets do not.

The service is very simple: register Suica, PASMO, etc. at any JR East station pink recharge kiosk for Touch and Go. Then waltz through the Shinkansen gate and get on a non-reserved Shinkansen seat. A typical use case looks like the diagram below.

Touch and Go Flow
Touch and Go Flow: recharge before you go

Of course the new service area comes with a campaign: 10% JRE POINT fare reward for Touch and Go travel in the new area for the first 3 months. As I have said before, JR East is busy ramping up for Super Suica. Now that we have expanded Touch and Go Shinkansen, a larger Super Suica stored value purse is a given. Do I hear ¥30,000? ¥40,000? The latter would put Suica on par with WAON.

Reader Question: what’s the point of Apple Pay My Suica?

A reader asked a very good question: what’s the point of an Apple Pay My Suica? Can’t you already migrate a normal ‘unregistered’ Suica to another device if you loose your device?

There are 3 basic Suica plastic card categories: unregistered, registered (My Suica) and commuter. PASMO and all other major Transit IC card are the same. An unregistered Suica card just spits out of the station kiosk after putting money in and you are on your way, but it cannot be replaced or re-issued if lost. Buy a new one, end of story.

With a registered My Suica card, the customer registers a name and other information on the kiosk touchscreen and if the card is lost it can be re-issued for a fee with the original stored balance intact. It’s Suica insurance. Same deal for Commuter Suica which is registered Suica with a commute plan attached.

Mobile Suica uses the same 3 category card model but Apple Pay Suica changed the game considerably. When a user transfers any flavor of plastic Suica to Apple Pay, the card is permanently linked to the user Apple ID. When a user creates a Suica card in Wallet it creates a My Suica card also attached to Apple ID. Apple Pay Suica cards also seem to be ‘ghost’ registered to Mobile Suica even when the user does not have a Mobile Suica account. Only the Apple Pay and Mobile Suica system elves really know what is going on.

The upside for Apple Pay users is that Apple Pay and Mobile Suica preserve Suica card information so the user can safely remove Suica from Wallet, re-add it, or transfer it to another device at any time. It’s free insurance without the hassle of registering a Mobile Suica account. All Suica card types are treated the same. The downside is that if you want to migrate to Android you have to delete your Mobile Suica account and refund the card, then create a new card and Mobile Suica account for Google Pay Suica. It’s the same deal going migrating the other way.

To answer the reader question regarding the point of Apple Pay My Suica, the point is this: commute plans, auto-charge, Green Car seat purchase. The point of Apple Pay Registered PASMO is similar: commute plans and auto-charge. All this is done via Suica App or PASMO App. If you don’t want those extra services, a plain unregistered Suica or PASMO is all you need.