Apple Pay Suica Inbound first time user experiences are endlessly fascinating and educational. What’s obvious and works for people who live in Tokyo, isn’t the case for visitors. The Cup of Tech podcast from July 16 highlights the frustration of not being able to pay for everything with credit/debit cards, and a positive first time Apple Pay Suica use experience.
The 5 minute mark is the tech low point: the state of cashless payments in Japan, but there is no color on what kinds of stores or businesses did not accept credit cards, and the comment about using PASMO and Suica for payment is weird: “It’s usually one or the other, it’s not both…. so I guess you have to have both.” I guess Zach never figured out that Japanese transit cards are compatible with each other.
The 6 minute mark is the tech highpoint: using Apple Pay Suica which Zach assumed he could not use because he read somewhere that, ‘you could only do this on phones sold in Japan.’ Fortunately he found out that his Apple Watch works with Apple Pay Suica and discovered the joys of using Suica Express Transit and recharging with Apple Pay on the go.
Both experiences make it clear that most people visiting Japan with global NFC iPhones are completely unaware of Apple Pay Suica and the ease of adding it to Wallet with the super simple SuicaEng app (which Zach highlights in a later podcast). I know because in 2 years of hosting a Apple Pay Suica guide, the page view analytics show that not many people are actively searching for Apple Pay Suica information in English.
Why the delay? It clearly was not the Smart Octopus in Samsung Pay exclusivity window that ended in December 2018. We may never know the whole story but I suspect that iPhone 7 FeliCa support is one reason for the delay, but certainly not the only one.
It makes sense for Apple and OCL to release Octopus that can be used on as many Apple devices as possible, the bigger the potential user footprint, the better. Octopus will work on Apple global NFC devices: iPhone 8/X/Apple Watch 3 and later. The important question is how badly do Apple and OCL want to add iPhone 7/Apple Watch 2 to the supported device list?
I previously wrote that Apple announced iOS 13 Core NFC enhanced tag support (FeliCa, etc.) for (all) iPhone 7 devices and later at WWDC19, but this does not sync with Apple Pay Suica device requirements: Apple is telling developers that all iPhone 7 models are good for NFC Read/Write FeliCa but telling customers that only iPhone 7 JP models are good for NFC card emulation FeliCa.
There are millions of NFC-F phones and devices outside Japan. That is because Type A and FeliCa are core requirements for NFC certification. If a phone supports NFC, it supports FeliCa. What is required to be compatible with most payment terminals in Japan is an Osaifu-Keitai provisioned secure element: that can be a SWP-enabled SIM card (not available yet), the Mobile FeliCa chipset with embedded SE, or an iPhone 7 provisioned for Osaifu-Keitai. The international iPhone 7s can do basic FeliCa read/write without encryption, because they embed a FeliCa-capable CLF <contactless frontend>. Apple has chosen not to provision them with Osaifu-Keitai keys, probably to avoid paying royalties to FeliCa Networks for each device.
This sparked some fascinating comments from Twitter user Lukas and, lo and behold, the very FeliCa Dude himself, an unexpected and pleasant surprise:
As always, the Dude delivers. Abide in the Dude, his knowledge and keen insight on all things NFC contactless and FeliCa is without peer. In a nutshell this means that OCL could offer Apple Pay Octopus on all iPhone 7 and Apple Watch Series 2 devices and add them to the Global NFC Apple device list…but will they? If OCL and Apple can supply the necessary keys in the over the air (OTA) iOS 13 release via the in-house Apple FeliCa keys server, all the better. Either way I think we will find out very soon, possibly as a ‘Apple Pay Octopus coming to Hong Kong’ side mention in the Apple Card release press kit.
Now that the FeliCa Dude has checked in, I hope he can find an appropriate outlet, blog or otherwise, to enlighten us, whatever the occasion. He is a far better writer than I will ever be. I’ve learned a lot from his writings, I know a lot of other people can too. The world needs to hear from the FeliCa Dude, not my cheap imitation.
The crucial section: “In my opinion there are only three reasons that Apple should not be able to bring Octopus emulation to iPhone 7:
If they are unable to allocate IDm (card unique ID) values to these non-blessed devices because that process is tangled up with FeliCa Networks
If they shot themselves in the foot and disabled their ability to interface their secure element to the FeliCa CLF (contactless frontend) in the PN67V on those non-Japanese iPhone 7 devices because they didn’t see Octopus coming.
They don’t feel like supporting iPhone 7 at all, not even the Japanese models: each device has a different generation of secure element, and additional development/testing/certification work may be required for them. This is again a combination of what Apple is willing to do and on which hardware platforms OCL is willing to authorize Octopus to be emulated on. It’s nothing to do with FeliCa Networks or Sony.”
After Apple and OCL set things in motion in December 2018 with tests for a tentative Chinese New Year launch but then put things on hold, Hong Kong iPhone users are finally getting their wish: Octopus on Apple Pay will launch in Hong Kong with iOS 13. The iOS 13 beta contains specific Apple Pay Octopus references along with Apple Pay server side references (link now closed) which indicate that OCL is field testing with the latest beta:
Suica Similarities Octopus is based on the same FeliCa technology used for Suica and both cards are very similar. Octopus is used extensively for fast transit and contactless payments of all kinds. According to Wikipedia there are over 33 million Octopus cards in circulation as of 2018 used by 99 per cent of Hong Kong residents. The addition of the Octopus transit payment platform to Apple Pay will drive its adoption in Hong Kong far more than regular credit/debit cards can ever accomplish, as it has in Japan with Apple Pay Suica.
The digital Smart Octopus in Samsung Pay is very similar to Apple Pay Suica, with fast Express Transit-like use and performance, but the setup is a little more user friendly for inbound visitors: a new virtual Octopus card can be created directly in Wallet without using a separate app like SuicaEng or HOP App. You can transfer a plastic Octopus card, but just like Suica and HOP, the plastic card cannot be used after transfer, and the same virtual card can only be used on a single device at a time. The Apple Pay Octopus experience will be the same and Express Transit a given.
Apple Maps Transit Integration Earlier Apple Pay Octopus reports mentioned Hong Kong Apple Maps Transit launching at the same time. Sources confirmed that Apple Maps Hong Kong transit directions were ready to roll a long time ago but have been held back for a simultaneous release with Apple Pay Octopus. It makes sense for Apple to offer both services as an integrated whole as they did for the Apple Pay Suica launch. If the Japan launch is anything to go by, confirmation won’t come until very late in the beta test cycle, if at all, Transit will simply appear.
Global FeliCa iPhone and Apple Watch The Apple Pay Octopus device profile will be the same as Suica: iPhone 7/7 Plus purchased in Japan (models A1779/A1785), iPhone 8/8 Plus, iPhone X, iPhone XS/XS Plus, iPhone XR set up with Face ID or Touch ID, and Apple Watch Series 3 and later. There is a chance that iOS 13 will retroactively enable FeliCa for all iPhone 7 models to support the Apple Pay Octopus launch.
The iPhone XS and XR models have the A12 Bionic exclusive Express Transit with power reserve feature that gives users an additional 5 hours of Express Transit use when iPhone in low battery power reserve mode. A12 powered FeliCa performance is also much improved over previous iPhone models. My experience with Apple Pay Suica performance on iPhone XS has been as fast and reliable as plastic Suica with none of the iOS issues of previous iPhone models, performance on iOS 12.3 is stellar. Apple Pay Octopus performance on iPhone XS/XR models will have the same advantages.
Hong Kong iPhone X users need to be aware of the iPhone X NFC hardware problem found on early production devices that causes endless issues with Apple Pay Express Transit. Apple has quietly provided replacement Revision B iPhone X devices for users who experience Express Transit gate errors in Japan and China. Hopefully Apple will offer the same courtesy to Hong Kong iPhone X users who encounter the issue.
The First Transit Platform Business Model The Hong Kong Octopus card was the first real transit platform (contactless transit and eMoney) that had a tremendous impact on the development of Transit for London (TfL) Oyster card, Opal in Australia and other transit card fare systems around the world. It’s great for Hong Kong users that OCL is expanding the Octopus platform to include more digital wallets. I hope OCL continues to expand both the service on other digital wallets, and the business opportunities. For Apple this is an important opportunity to kick Hong Kong Apple Pay use into high gear and will certainly drive Apple Pay credit/debit card use on the recharge end far more than regular bank card Apple Pay, last but not least it’s a vindication of Apple’s global NFC “it just works” anywhere vision for Apple Pay.
Go for it Tim! It will undoubtedly help Apple sell more global FeliCa iPhones because Octopus on Apple Pay is a great marketing angle for the iPhone XR/XS models with Express Card power reserve and bulletproofed FeliCa performance. I have yet to experience a single Apple Pay Suica gate error from my iPhone XS with daily use since the launch date.
UPDATE It occurred to me after posting the above that Apple has introduced transit cards and the technology behind them with larger point releases: iOS 10.1 for Suica (FeliCa) and iOS 11.3 for Beijing and Shanghai Transit cards (Apple flavored PBOC 2.0 ED/EP). In this scenario iOS 12.2 is the logical starting point for Octopus on Apple Pay. However, Octopus is FeliCa which has been part of Apple Pay for over 2 years, Apple has ample engineering and testing experience with the technology to add Octopus with a smaller point release, or none at all which was the case with contactless student ID cards.
UPDATE 2 The original source reports pointed to an end of January rollout, now that iOS 12.1.3 is released we will see how it plays out between now and iOS 12.2. Considering the Apple Pay Suica launch meltdown on iOS 10.1 update day, Apple would be wise to launch on a quiet network day as Apple Pay Octopus day 1 user additions will far outstrip any regular credit card Apple Pay rollout, the use profile for prepaid transit cards is very different.