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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.

Japan Cashless 2020 Retrospect

As we look back on 2020 there are 2 big divides: COVID and cashless. We suddenly found ourselves in a world where all human contact is conducted behind face masks and sheets of clear plastic. Not touching anything not ours is the rule of daily life.

The year started with the Japanese Cashless tax rebate in full swing but the real value of the program, helping smaller merchants to add cashless payments, became clear when the Diamond Princess brought the COVID crisis to Japan big time and real cash suddenly become suspect fomite material. More than anything, COVID fears attached to handling cash drove cashless use in 2020 but are we there yet? Back in July, I said we are. It will be months before official 2020 cashless trend numbers are in, but you don’t need anything more than to ask yourself one simple question:

How much has changed since the October 25, 2016 Apple Pay Japan launch?

Junya Suzuki correctly predicted Apple Pay would be the ‘Black Ships‘ inflection point catalyst for cashless payments in Japan that would change everything. And everything has changed. Cashless is now the first choice that most people want, that most stores want you to use. Cash is the fallback. If grandma want to use it at the supermarket checkout she can take all the time she wants feeding bills and coins into a checkout payment machine. Just one more choice in the every growing payment option menu.

There were other cashless developments in 2020, such as the Yucho Bank security scandal that hit the Docomo Account first, then other online payment services. The end result was that QR Code players (PayPay, Line Pay, etc.) took a hit and for the time being cannot recharge from a bank account. It knocked the wind out of QR Code payment mania that I don’t see returning.

On the transit front the biggest news was the Mobile PASMO Android and Apple Pay PASMO launch. Geographically these only cover the Kanto region but Suica and PASMO combined represent 80% of the Japanese transit IC card market. As Mobile PASMO turned out to be recycled Mobile Suica under the hood, I see it as part of the overall JR East next generation Super Suica that is formally launching in March 2021.

2021 should be an interesting year for contactless payments with Super Suica and VISA Japan finally signing on with Apple Pay. We will see more transit IC card service announcements similar to the Mobile ICOCA one, and if Apple Pay QR Code Payments launch we could see developments in that segment, but 2020 will always be known as the year that Japan finally went cashless.

Super Suica 2 in 1 Region Cards

JR East Super Suica 2 in 1 card announcements are coming regularly. Instead of separate posts I’m listing all cards here and will update the table as new cards are announced.

2 in 1 Region Card List
As of November 30, 2020, we have 6 Super Suica 2 in 1 Region Cards.

RegionTypeAnnouncedLaunchPartners
UtsunomiyaBus & Light Rail2019-7-9March 2021 (Bus)
March 2022 (Rail)
Kanto Transportation
JR Bus Kanto
Utsunomiya Light Rail
Iwate PrefectureBus2020-1-16March 2021Iwate Kotsu Co. Ltd.
Iwate PrefectureBus2020-10-20March 2021Northern Iwate Transportation
Hachinohe CityBus2020-10-21March 2022Northern Iwate Transportation
Hachinohe City Bus
Aomori CityBus2020-11-19March 2022Aomori City Bus
Akita CityBus2020-11-30March 2022Akita Chuo Kotsu Co. Ltd.

Details are spare but from the announcements so far we can expect:

  • Local Branding: Super Suica 2 in 1 Region cards will have their own branding, commuter passes and reward points. I suspect local reward points can be exchanged with JRE POINT as well. There will also likely be special services and discounts for local area residents linked to Ny Number Card.
  • Suica benefits: Though they have different branding, local region 2 in 1 cards are Suica cards with all the Suica infrastructure benefits including Mobile Suica, Shinkansen eTickets, Transit IC compatibility, eMoney, etc.
  • Contactless: eliminating paper tickets and hard cash in areas without Transit IC cards in the COVID era is a good thing though credit card companies are marketing the hell out of it too. More on the subject in a this post.

Super Suica offers the benefits of Suica infrastructure to local transit agencies within the JR East area who don’t have the resources to launch or maintain their own Transit IC card system. Plugging orphaned regions into the wider transit network with the same infrastructure is the sensible thing to do, I wish JR East had done this years ago. We should see more announcements in the coming months and Japanese press coverage as the first services prepare to launch in March 2021.

Related Posts
Road to Super Suica: cloud integration and the transit card push to mobile
Road to Super Suica: 2 in 1 shared infrastructure and mobile transit card expansion update
Smells like Super Suica: next generation FeliCa

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.

VISA Touch Transit Boutiques

VISA Japan announced VISA Touch support on Kyoto Tango Railway, most media outlets simply ran edited versions of the VISA Japan press release. The infrastructure uses a slightly modified stera store reader platform, which VISA has a hand in. Willer Inc. is hailing this as the first ‘VISA Touch’ solution on Japanese train systems but they ignored the fact that stera VISA Touch was already announced for Ibaraki Transit highway bus service back in July.

Japanese journalist comments on Twitter were fun to read with the ‘let’s just dump FeliCa and Suica already and go all in with EMV’ supporters club checking in as usual. Nobi Hayashi asked good questions regarding real user convenience. Junya Suzuki said he plans a trip to investigate the new service, his next ‘Pay Attention’ column promises to be a good read.

Just what kind of end user are these VISA Touch transit installations targeting anyway? Let’s do a quick profile:

  1. VISA Touch JP plastic cards are being issued in Japan but they are new and few and dwarfed by the number of Transit IC cards (Suica, PASMO, ICOCA, etc.) that can be bought by anybody at any station kiosk machine with cash. Apple Pay Japan users cannot use it because VISA JP refuses to support Apple Pay JP FeliCa/EMV dual mode NFC switching. This service is not targeted for domestic transit users.
  2. Both of these VISA Touch installation transit areas market heavily to inbound tourists, neither of them support Transit IC cards.
  3. VISA Touch is not compatible with PBOC Union Pay cards technology, the installations also support QR Code AliPay and WeChat Pay for inbound Chinese tourists

The short summary is these installations are for inbound tourists with VISA Touch contactless credit cards, a transit boutique for marketing purposes more than real use.

Japanese media is quick to dismiss FeliCa as a technical failure in the face of EMV but I think that is the wrong analysis. Looking back it’s easy to see a huge mistake was that the big push for Mobile FeliCa credit cards on smartphones was not matched with an equally big push for plastic credit cards with FeliCa support.

And the big EMV push instead of FeliCa has not worked out so great either. Instead of making a technology agnostic unified push for NFC contactless, EMV bank card interests pushed their own agenda. All that did was provide a big opening for domestic QR Code payment players like Line Pay and Pay Pay which they took and continue to take.

What I find fascinating is that the mainstream Japanese IT media has not written much about the Super Suica 2 in 1 card strategy or rollout plans. Low cost transit IC card infrastructure sharing that delivers consistent and seamless transit service on mobile and legacy plastic while offering local area branding and services is a compelling vision that I don’t see bank card companies matching.

The challenge for JR group companies (JR West, JR Central, JR Kyushu, etc.) is working with JR East to offer Super Suica 2 in 1 card solutions in their own regions, because if they do not we’ll see more VISA Touch transit boutiques.