NTT Docomo Celebrates Osaifu Keitai 15th Anniversary

It all started today, July 1, 2004, when NTT Docomo launched the iMode FeliCa mobile wallet, called Osaifu Keitai in Japanese. It was the world’s first mobile payment platform, a tremendous achievement and forerunner to the Apple Pay and Google Pay services we have today. To celebrate the anniversary Docomo has lined up a bunch of point campaigns for all the Osaifu Keitai payment networks: Mobile Suica, iD, QUICPay, WAON, nanaco, Edy. Unfortunately Apple Pay users are only eligible for iD and QUICPay (details will be available later).

Docomo also has a nifty anniversary page highlighting all the Osaifu Keitai payment networks, when you tap or click the payment icon it plays the feedback sound you hear at the register. The Suica sound is the original one we heard way back in 2006, which you don’t hear anymore. It’s a fun way to celebrate the trailblazing mobile payment platform that Docomo and Sony invented.

Advertisements

iOS 13 and the Transition to Global NFC

Crowd Cast president Takashi Hoshikawa updated his Japan Cashless map introduced back in January, the cacophony of QR Code payment platforms continues to grow. Just like any gold rush, QR will crash and burn at some point. Big players will gobble up the smaller ones and things will settle down.

But something else is going on. There’s a small but important difference, so small that Takashi Hoshikawa is not aware of it: he labeled the FeliCa section in the upper left corner as NFC.

This is the result of using Apple Pay on a global NFC iPhone where all the necessary hardware and software is seamlessly unified. The old plastic card mentality of different walled off technologies: contactless credit card (EMV), transit card (FeliCa, MIFARE), ID card (ISO 7816), NFC A/B or F, etc. slips away and becomes one seamless NFC Wallet in the mind. This mindset is also on display in SearchMan co-founder Naoki Shibata’s recent article on Rakuten Pay Suica: no mention of FeliCa anymore, it’s just one NFC thing.

This is an important and natural, but quiet progression that will accelerate with the enhanced NFC support in iOS 13 and expansion of new services like Apple Pay Octopus. iOS 13 Apple Pay Wallet will set the standard for global NFC that just works, a standard that Google Pay will struggle to match because of Android hardware fragmentation.

Players that leverage the advantages of global NFC and offer new services based on them, like JR East (Inbound Apple Pay Suica), and Mastercard (NFC switching dual mode bank card services) will gain, while companies that stick with the old ‘one thing’ contactless plastic card mentality, like Visa, will lose. It’s that simple.

Apple Pay Octopus and the future of the Octopus Transit Platform

UPDATE: Hong Kong OCL officially announced Apple Pay Octopus

One downside of breaking a tech story on the internet is news aggregator sites. Responsible tech news sites like MacRumors and AppleInsider post outside sourced news that serves their readership and sends traffic to the original source. And then there are not so nice aggregator operations posing as news sites like The Verge, TechCrunch and 9to5Mac who craft crappy posts, lifting whole chunks from outside stories, or simply lifting without attribution, minimizing any outside contribution to keep traffic on their own site.

So it’s a bummer that SC Yeung’s excellent EJ Insight story “Why Hong Kong can expect Apple Pay support for Octopus Card,” quotes the 9to5Mac ripoff of my piece instead of the original, but it’s an interesting read with good analysis. Yeung makes the same point I did a few months ago that the expansion of Octopus to Apple Pay is an important step forward for the platform. But it can’t stop there: Octopus Cards Limited needs to continue digital wallet expansion and create new business opportunities. Unfortunately it has to accomplish this while parent company MRT Corporation is opening up its transit gates to QR Code and EMV payments which will compete with the subsidiary OCL Octopus card business:

MTR will begin accepting QR code payment starting from next year and the rail operator will also add more contactless payment systems on its gates in future. For commuters, Octopus Card will no longer be the only choice for MTR payments…

<It> is becoming clear that <OCL> needs a new business model to maintain its market-leading position. Using a specific card for payment is no longer a modern way of payment. The core issue for Octopus is transform into something bigger, moving beyond the current payment functions and offer a lot more, perhaps even a mobile banking service, to retain users.

Why HK can expect Apple Pay support for Octopus card

JR East has taken a very different approach. Suica is a central business pillar and JR East will be expanding it with the next generation Super Suica in April 2021. Suica will gain the ability to virtually host other transit card under the same Suica umbrella on plastic and on mobile. Think of it as a national transit and payment card with Express Transit anywhere, anytime. How fascinating it would be if Octopus had a similar kind of opportunity to expand outside of Hong Kong.

Even from the short vantage point of 2.5 years since the launch of Apple Pay Suica, it’s already easy to see the charges that it has brought to the Japanese payments market. It will be interesting to watch the changes that Apple Pay Octopus brings to Hong Kong.

Visa Japan Finally Ready to Sign on to Apple Pay Japan?

IT journalist Junya Suzuki was answering a question of mine regarding dual mode (EMV/FeliCa) credit/debit cards which are somewhat mainstream, even on Docomo dCard, but the plastic issue Sumi Trust Visa contactless cards are EMV only.

I guess Visa Japan still wants to promote payWave (banded as Visa Touch in Japan) over better customer service. Because if Visa was promoting better customer service, they would offer dual mode for plastic cards and Apple Pay like Mastercard and American Express do.

Visa Japan has yet to sign directly with Apple Pay, the reason why Japanese issue Visa cards don’t work for Apple Pay Suica Recharge, but there may be hope. Suzuki san’s tweet suggests Visa Japan might finally sign with Apple Pay, “in the very near future.”

I certainly hope so, but given that Visa Japan has ‘been in discussions with Apple’ to officially join Apple Pay Japan since the service launched in October 2016, and have done nothing the whole time, I’ll believe it when I see it.

Apple Pay Suica Recharge Performance in iOS 12.4 b4 and the Apple Card Connection

Okay A12 Bionic and FeliCa fans, try this on iPhone XS/XR with Apple Pay Suica on iOS 12.4 b4:

  • Initiate a Suica Recharge
  • While the recharge is processing swipe up and you will feel the haptic feedback bump indicating the recharge process has been cancelled, the Apple Pay ‘ka-ching’ all done sound and checkmark never happens
  • On the Suica Recharge screen tap cancel and go back to the main Suica card screen where the recharge is processing and updates the Suica balance
Apple Pay Suica recharge just keeps on going even after cancellation

So, the Suica Recharge process barrels along without giving feedback. iOS didn’t do this before, is it a bug or a feature, and what’s happening? It’s related to what I observed in the previous post where the Suica FeliCa prepaid transaction and EMV Apple Pay postpay processing happened simultaneously because the A12 Bionic Secure Enclave processes FeliCa transactions directly without iOS.

We now have an explanation why EMV Express Transit went missing in the first few iOS 12.4 beta releases: Apple was doing lots of heavy duty Wallet optimization to make the prepaid recharge process fast and bulletproof.

But why? We have an explanation for that too: Apple wants the Apple Card EMV postpay to prepaid Apple Cash card recharge performance to be fast and absolutely bulletproof. The Apple Cash connection with Apple Card is a huge selling point, and Apple is making damn sure that people are going to love it for the reliable Apple Cash e-money recharge performance, even if that means breaking Suica recharge a little to do it.

This kind of aggressive optimization is a good ‘problem’ for Suica to have, and because all things Suica, from the UI changes to the Express Transit performance improvements since iOS 12.2 have been a testing ground for Apple Card, unavoidable. After all, Apple Pay Suica is the closest thing to Apple Card with Apple Cash that Apple has going, making Suica a great test environment for new Apple Pay development. Hopefully Apple will fine tune and fix remaining Suica recharge issues before the final release and Apple Card debut.