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.

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.

Suica UI tweaks in iOS 14/watchOS 7

As with every major iOS update the Apple Pay Suica UI gets a minor tweak or two. Sometimes they pan out, sometimes they don’t. The dynamic commute plan ‘Renew’ button was a little more descriptive in b4 and b5. At best it’s was of questionable value when the language was Japanese but downright embarrassing to look at when the language was English.

Since Wallet card UI elements can be dynamic why not highlight the expiration date in red instead? Apple engineers fortunately had the better sense to change the button label back to the sensible iOS 13 design in iOS 14 b6, the final design.

watchOS 7 Suica is getting some useful tweaks: card transaction history, low balance and commute plan renewal reminders, and Suica card information can now be viewed and/or set directly on Apple Watch. In watchOS 6 these can only be viewed or set in iOS Watch App.

Apple Pay PASMO and the coming transit IC card rush to mobile

Mobile PASMO was announced in January 2020, launched on Android Osaifu Keitai in March and will land on Apple Pay with the iOS 14 update this fall. As early as April Apple was already dropping hints that Apple Pay PASMO was on the way.

9 months is a quick turnaround for announcing and launching an entirely new mobile transit service across 2 digital wallet platforms: Android (Osaifu Keitai) and Apple Pay. It sure beats Cubic Transportation Systems who have yet to get Apple Pay Ventra out the door more than a year after it was first announced in March 2019 on the far less complex Chicago transit area.

While many Apple Pay users in Japan are happy to have PASMO, there is always that nagging question: if I already have Apple Pay Suica that works nationwide, what’s the point of Apple Pay PASMO? All the major transit cards are cross compatible, the only difference is commuter passes…and reward points. As FeliCa Dude so astutely explained in his excellent Reddit post, Mobile PASMO is a boondoggle, the result of JR East and PASMO Association failing to cooperate and mutually host commute plans…and points.

All Japanese transit cards are slightly different versions of Suica. There could easily be one national transit card and Japanese users absolutely would love having it, but ICOCA, TOICA, manaca, SUGOCA, Kitaca, nimoca and Hayaken want to hang on to commuter passes…and points. The good news is that (1) Mobile PASMO got off the ground in a very short time, (2) JR East is providing Mobile Suica cloud assets. I suspect Mobile Suica is likely hosting Mobile PASMO as well but whatever deal they cut is hush-hush.

Suica growth, the CASHLESS tax rebate effect, COVID and all that
Junya Suzuki beat me to the punch today with an excellent piece that covers the Apple Pay PASMO announcement and several recent Suica trends including the recent addition of Suica to Square. The most important one to me is the July 2020 edition JR East factsheet Suica section: “Number of e-money available shops”. The number of Suica ready stores increased 50% YOY by 324,000 in the March 2019~March 2020 fiscal year with store growth outside of station areas increasing the most.

This is a direct result of the CASHLESS Tax Rebate program which provided merchant subsidies for cashless infrastructure. That program ended June 30 but there is talk in government circles of implementing a similar program to boost the economy and drive cashless use in the COVID era.

JR East factsheet Suica Section

Suzuki san points out what I have said in other posts, Mobile Suica growth from the October 2016 Apple Pay Suica start point is remarkable: 9.3 million users as of March 2020. And the growth rate is accelerating. Smaller and less expensive mobile devices like Apple Watch with Apple Pay Suica and Garmin Suica make the mobile transition attractive for a wider number of users.

JR East factsheet Suica Section

With restricted travel in the COVID era every single transit company in Japan is facing tremendous pressure to reduce costs. Moving away from high cost plastic transit cards with cut and past Mobile Suica IT assets and next generation Suica card architecture will be the easiest way to do that.

The rush to mobile
It starts now. Apple Pay PASMO marks the start point of a transit IC card rush to mobile digital wallets. Mobile PASMO is rebranded Mobile Suica. With next generation aka Super Suica coming in 2021, at the very least I think we’ll see similar arrangements from JR West ICOCA, JR Central TOICA and other major transit IC cards. With the addition of MaaS NFC Tag Suica, we’ll see a faster, wider uptake of Mobile Suica and sister services for payments everywhere.

And for those Open Loop advocates out there Junya Suzuki has some surprising analysis regarding the Japanese transit scene: despite some limited installation such as Okinawa Monorail, he does’t see transit companies going in for Open Loop in any big way. Mag strip paper ticketing will gradually be eliminated as next generation transit gates go into service over the next few years but mobile transit cards and paper QR Codes will be the replacement, not Open Loop.

As I have said before, the whole ‘Open Loop vs Closed Loop aka EMV contactless bank cards vs Native IC transit cards’ debate is pre-mobile plastic era out of date thinking. Mobile wallets and apps have tossed that whole game out the window for good. Why do you think QR Code payments and UWB Touchless are coming to Apple Pay in iOS 14? It’s a whole new crazy game. Better get used to it.

The Apple Pay Octopus Inbound Gouge

Good old William S. Burroughs hit the nail on the head explaining what the title of Naked Lunch really meant: that awkward frozen moment when everybody in the restaurant sees exactly what is on their fork. iOS developers staring at the thing stuck on the tip of the App Store fork don’t like what they see: an Apple platform that’s supposed to be a level playing field, where the reality is that Apple plays favorites and cuts side deals, a losing game of lowering standards.

People far smarter than me already editorialized Tim Cook’s opening statement at the Congressional antitrust hearing. I won’t go into it here except to say, what did they expect? The whole affair, on all sides, was a bad lip read parody, an awkward Handsome Anthony moment without the humor.

Octopus Cards Limited (OCL) released an iOS Octopus app for tourists last week that perfectly illustrates what’s at stake in Apple’s losing game of lowering standards. The long delayed Apple Pay Octopus launch in June was very successful but OCL shut inbound visitors out by limiting the Apple Pay Octopus service to Hong Kong issue bank payment cards.

This is something that Apple Pay Suica has never done. All Apple Pay cards and iPhone users from around the world are welcome to use Suica. This is why Suica remains the gold standard of what a transit card on mobile should be.

Instead of following the Suica example, OCL took the low road for inbound iPhone users. Octopus Tourist app adds an Octopus card to Apple Pay Wallet with a non-Hong Kong issue card. However the currency charged to the users Apple Pay cannot be in local HKD currency. OCL forces users to choose another currency as the default currency for the life of the card. This adds an invisible surcharge over local currency transactions, 4% or more on average, which is OCL taking their cut.

This is called forced Dynamic Currency Conversion (DCC) and is a credit card compliance violation. Visa, Mastercard and all stipulate that merchants cannot impose any requirements on the cardholder to use a non-local currency. Why OCL is so brazenly breaking these rules, and why Apple is allowing this level of gouging in a major app from a major Apple Pay payment provider is not good at all. As FeliCa Dude says, “Apple should swiftly rebuke this kind of grasping banditry lest it poison their platform.”

If Apple does nothing, I think we have the answer Tim Cook didn’t give at the Congressional hearings, and many more embarrassing awful Handsome Anthony moments to follow. Okaaaay?