iOS 16 Apple Pay and Wallet Fine Print Features

iOS 16 doesn’t have many big new flashy features. There is the Dynamic Island for iPhone 14 Pro, which I would love to have but I’m holding on to my iPhone 13 for another year…or two. Fortunately there are plenty of nice refinements for the rest of us without the latest greatest iPhone hardware, Apple Pay and Wallet are no exception. The full list is on the New features available with iOS 16 page. As usual the iOS 16 and watchOS 9 pages for each country are edited to reflect available, or coming soon, “Key Features and Enhancements” for the region balanced against the full spec USA feature set.

An interesting thing about iOS 16 Apple Pay and Wallet is that not all the listed features apply to regular users…at least not at first. Some are behind the scenes stuff for merchants and developers that will take time to land in our Apple Pay Wallet as features we can use. Let’s take a quick look by breaking down the categories.

1) General improvements (for everybody)
Quick access menu: a handy new shortcut menu for all Wallet cards and passes via tapping the More button. The menu varies according to the card feature set. Transit cards like Suica have the most, payment cards without notifications (all Japanese issue payments cards) have the least. It’s a nice tweak most useful as a fast way to toggle individual card notifications on and off. Zollotech posted a video that covers quick access menus for Apple Card and Apple Cash along with an overview of iOS 16 Apple Pay and Wallet option settings.

Apple Pay Order Tracking: announced at WWDC22, this new Wallet button sitting next to the ‘Add’ button seems like a no-brainer: when I order something with Apple Pay I get automatic tracking…nice but I wonder how it will play out. Apple Store app for example already has robust tracking and accepts Apple Pay, so do a lot of other apps. Will they remove the function from their app, offer choice between in-app or Wallet order tracking, or something else? Either way it will be a while before we see merchant updates.

2) Digital key features (for most markets): iOS 15 was the Apple Pay and Wallet upgrade that set the course for the next few years with keys and ID. The iOS 16 improvements are about making adding a key and family sharing easy. Hotel keys are now sharable like car and home keys, gotta let the kids have access and all…though I suspect office keys remain on the un-sharable list.

Key sharing (coming with an update later this year): in addition to Messages and Mail, 3rd party messaging apps such as What’s App will support key sharing. In Japan the only 3rd party messaging app that matters is Line. iOS 16 looks to be the breakout year for keys in Wallet.

Add keys from Safari: more important that it might seem at first, there are plenty of uses for loading a key into Wallet from a time sensitive Safari web page link instead of the usual time wasting mess of downloading an app, creating an account, making a reservation, etc. You know the drill. Digital key issue remains a complex thing that usually requires an app with an account to securely issue a mobile key remotely with set limitations (time, area, etc.). Hopefully adding keys in Safari gives developers easier service options, but connecting identity with access remains a challenge.

It’s important to note that issuing digital keys is only one step of the complex process that allows guests to bypass the front desk. Apple’s announcement certainly does not spell the end of the hotel app as we know it…

It’s a big step toward streamlining a process that has, until this point, prevented many guests from using their phone as a digital room key. But, Wallet only solves one segment of the end-to-end operation required to get a guest checked in and room access issued. The bigger issue is connecting identity with access, which requires many more steps beyond issuing a key.

How Apple’s Newest Features Will Affect Hotel Check-in

The solution to this is the new iOS 16 ID in Wallet features for apps in the next section.

Multi-stay hotel keys: if you stay in the same hotel chain on your trip that already supports Wallet hotel keys, you might have the opportunity to use this feature where you load one hotel key into Wallet that works across all your reservations. Like order tracking I think this one will take time for the major hotel chains to get onboard, and of course the devil is in the check-in/activation details.

Easy device migration for keys: I assume this refers to the Previous Cards Wallet category that came with iOS 15. The iOS 16 features page text blurb suggests a possible UI tweak, but I don’t have any key to test. We’ll have to wait and see.

3) ID in Wallet features (USA only): the next big step for ID in Wallet after getting them out the door is app support. This is where digital ID moves beyond airport TSA security checks and becomes really useful.

ID cards presented in apps and Verify your identity in apps sound exactly the same so you have to read the fine print carefully. ID cards in apps describes 2 specific pieces of information: identification and age, validated by Face/Touch ID. Taking a wild guess, there are plenty of account registrations that only need to confirm your identity and age as part of a signup process. Digital ID can vastly simplify the process.

Verify identity in apps describes ‘verified information’, i.e. more than just ‘I am this person, I am xx years old’. The iOS 16 pages shows a car rental app confirming a user’s driver license status and driving privileges. This has a lot more use (and abuse) potential. The hotel app and key issue verification problem mentioned earlier is exactly what digital ID in apps can help solve. MaaS apps are another example where verification is essential for offering special discounts for seniors, locals, inbound visitors, etc. Reliable, secure and universal digital ID would solve a lot of service problems, but privacy, how does the app use digital ID information, how long is it stored, etc., is always a concern.

Apple Pay features for merchants and developers: It’s a little strange that Apple is listing Merchant tokens and Multiple merchant support on the feature page. These are backend additions to PassKit and it will take time for merchants and the developers they employ to implement them. Both of these expand the Apple Pay experience. For me merchant tokens is the more powerful feature, one that enable reoccurring and auto-reload payments. It could be a boon for subscription services and much easier auto-recharge in apps and transit cards like Suica and PASMO. Auto-recharge is one of my favorite Apple Pay Suica features and it would be great if JR East freed it from the shackles of Suica App and View Card and added Apple Pay auto-recharge.

4) Apple Pay Services (for the USA): aka longtime USA only services: Apple Cash and Apple Card with the new addition of Apple Pay Later…coming later this year. All of these fall squarely in heavily regulated banking services, so don’t expect them to expand beyond the USA any time soon. The iOS 15.5-ish rebranding of iTunes Pass into Apple Account card, now with Wallet reload in iOS 16, should expand more quickly.

As with all recent iOS releases, the fun features comes later on in the life-cycle. I’ll update this post as with new information as the iOS 16 Apple Pay and Wallet story unfolds. Until then have a happy cashless, er, you know what I mean.


Region Setting and Apple Pay (updated)

The iOS Region Setting and Apple Pay are linked together in interesting ways that has changed with iOS versions. Up through iOS 10, devices needed to have the region match the country they wanted to add and use cards in: iPhone had to be set to Japan to add and use Japanese credit cards in Apple Pay, and so on.

iOS 11 through iOS 14
This changed in iOS 11 with global FeliCa iPhone and NFC switching. Region setting only needed to be changed to add a card for any particular country and had nothing to do with using it. This is because Apple Pay Wallet displays card options that match the Region setting, it acts like a filter that removes outside clutter. The add card animation cycle shows what’s available:

After adding a card, the Region setting can be anything, as Apple Pay ignores it and takes care of the rest. Many inbound users don’t realize this and have avoided adding Suica to Apple Pay under the misconception that the iPhone/Apple Watch Region has to be set to Japan to use it.

Wallet behavior is the same in iOS 12, even with the iOS 12.2 UI tweaks, but the region setting can be ignored when adding cards to Apple Pay with an app like Suica. Another small change from iOS 11 is that if you have a Suica card deleted from Wallet that is parked on Apple Pay iCloud, Wallet will show you the Add Suica option no matter what the iPhone Region setting is. It’s a nice touch and reminder in case you ever forgot you had one.

Wallet location based prompts for adding Suica and PASMO iOS 13 and iOS 14. Prompt appear under the following conditions: (1) iPhone location is Japan, (2) the Apple ID account has never added a Suica or PASMO to Wallet. Suica and PASMO are then added without changing the device region.

iOS 15
iOS 15 revamped the Wallet add card UI considerably. Transit cards are now region free, anybody can create new transit cards. Add Suica or PASMO regardless of your device setting. See Suica • PASMO Guide for details. There is also a new ‘Previous Cards’ category for quickly re-adding cards, keys and ID that were removed from Wallet but are saved on iCloud. Some options such as adding nanaco and WAON e-Money cards and Driver’s License ID in Wallet are still region-setting dependent.

Apple Pay Suica Express Card Performance Timelines

Express Cards on iOS/watchOS have a special place on the Apple Pay platform. First of all there are only 3:

Express cards share common features:

  • they are stored value
  • they can be recharged with Apple Pay credit cards or cash
  • they don’t require Apple Pay authentication
  • they are multi-purpose and are used for purchase, transit and opening door locks

Apple Pay credit/debit cards in both EMV or FeliCa flavors use middleware to work the transaction magic but Express Cards like Suica and Student ID don’t use middleware. They are pure card emulation residing in the super exclusive PassKit NCF Certificate Nirvana zone where they can do anything they want.

There is a weakness on pre-Bionic architecture however: iOS/watchOS has to babysit all the card emulation and is a somewhat fragile. Changes in the OS affect performance and reliability. Here is a timeline of my experiences with iOS 10 Apple Pay Suica Express cards on the iPhone 7 JP model.

iOS Suica Express Performance Timeline

Apple Pay Express Card performance on pre-Bionic hardware tends to be cyclical: each new iOS has unstable performance at first but improves with later updates. It happened with iOS 11 and the rocky Apple Pay Cash start. And it’s happening again with iOS 12 and iOS 12.1 both of which have Express Card performance issues.

iOS Suica Express Performance Timeline 2

That is why A12 Bionic and Express Cards with reserve power are a big deal. Express Cards with power reserve are the latest Apple Pay Wallet feature to arrive with A12 Bionic on iPhone XS and iPhone XR. Express Cards with reserve power operate without iOS up and running and bypass iOS for basic operations even when it is running. This removes a huge layer of potential problems. My experience with ‘bulletproof’ Apple Pay Suica Express cards on iPhone XS simply blows everything else away.

At some point this feature will be standard across iOS and watchOS. The reliability benefits are huge, as is peace of mind in a power pinch.

And finally there is iPhone X Suica Express Card performance which is in a dog league all its own. Taken together with the iOS 11~iOS 12 timeline, it illustrates how complicated and confusing the current iOS 12 situation is for iPhone X Japanese users. Until Apple comes clean and provides some guidance for iPhone X devices with defective NFC, I don’t see things improving for these users. I’m glad to be out of it but cringe reading iPhone X user experiences and feel for the users as I’ve been there myself.

Suica Express Card performance and iPhone X production timelines compared
iPhone X only had 6 months of defective free NFC production. Until Apple goes public with the iPhone X NFC problem, many users will never know they have a defective device. Taken together with the iOS 12 performance issues, it’s a perfect storm of confusion.

H.I.S. Mobile Strange SIM Shocks Japanese

Junya Ishino’s report on H.I.S. Mobile’s “Hen na SIM” (Strange SIM) has raised a few eyebrows and comments on Twitter. Comments like how is Apple OK with this brazen hijacking of iOS Enterprise certificates and iOS Enterprise App distribution for profit?

Hen na SIM appears to be a global SIM sticker package for overseas use that is bundled and sold by H.I.S. Mobile along with an iOS “app” that customers download not from the Apple App Store but from the H.I.S. site. H.I.S. sidesteps Japanese regulations with the Overseas use only label and seems to be sidestepping Apple rules as well by misusing enterprise iOS app distribution.

H.I.S. is a Japanese discount travel company with a less than stellar reputation. I used them 10 years ago and knew some people who worked there. The water cooler stories were vicious “black company” yakuza stuff. A normal person didn’t last long in such a deranged corporate culture. I would never consider giving them my business again, or my iPhone.

It will be interesting to see if Apple pulls the H.I.S. developer enterprise account for rule violations.

What the Hell is VISA Up To in Japan?

VISA is the least consumer friendly card company in Japan. Period. Mastercard, American Express and JCB are making it easy for Japanese customers to use their cards in mobile wallets (Apple Pay, Osaifu Keitai) both domestically and abroad with NFC Switching. NFC certification requires both NFC-A and NFC-F. Smartphones can do it all, how nice.

Except VISA does not want to play nice, they want to play market politics. Witness VISA’s latest boneheaded move reported by Masakazu Tatara on his excellent EPayments JP site: Visa is pulling the plug on Mobile Visa payWave (NFC-A EMV contactless). The last holdout is Sumitomo Mitsui who will terminate service at the end of December 2018. VISA on the iD and QUICPay (NFC-F FeliCa) contactless payment networks remains in place as does plastic card payWave.

As Tatara san asks, what is VISA up to? His quick review of the Mobile VISA payWave spec is helpful and remarkably similar to the Mobile FeliCa spec.

The secure methods for storing Mobile VISA payWave transaction information are:

  1. A mobile device with an Embedded Secure Element (eSE)
  2. HCE (Host Card Emulation in the cloud)
  3. A “Mobile eSE” SWP SIM
  4. A NFC Contactless Payment Sticker

As Tatara san explains, it is the #3 SIM card option that is really being phased out.  #1 includes Apple Pay and Osaifu Keitai devices. The recently released Google Pay Japan is simply an alternative Osaifu Keitai front end that entirely dispenses with the dead HCE-F. As if this was confusing enough, VISA Japan has not signed on with Apple Pay Japan or Google Pay Japan, nor is VISA payWave compatible with the Osaifu Keitai standard. This leaves #2 and #4 as the only real Mobile VISA payWave Japan options going forward. Good luck with that.

Japanese media has speculated that the Sumitomo Mitsu and Mizuho financial groups want to promote QR Code contactless payments over NFC and the death of Mobile VISA payWave proves that QR is winning the contactless payment turf war. Don’t believe it.

In Japan, aka the contactless payment turf war epicenter, the battle line is stored value vs. credit card with stored value cards the clear winner. This week’s Mizuho Suica announcement is proof of that. There isn’t any money for Japanese merchant support of EMV contactless because most inbound tourist business is mainland Chinese who only want to use QR code contactless AliPay and WePay which Japanese will never use.

So where is VISA going in the Japan market? One guess: the success of Apple Pay Suica and the release of the Global FeliCa iPhone/Apple Watch has VISA at a momentary standstill. Because if Google follows Apple’s lead and releases a Global FeliCa Pixel 3 with NFC switching, things will get very interesting. The more Global FeliCa becomes a ho-hum checkbox feature with every smart device, the more VISA Japan will have to play nice with Apple Pay and Google Pay or risk being shoved aside.

Which brings us back to FeliCa again. To outsiders it looks like the Japanese contactless payments market goes round and round, but it doesn’t. VISA Japan goes round and round playing market politics never moving forward, and that does damage. Last month I wrote:

It would be much better for customers if smart device manufacturers bundled all the major middleware stacks (EMV, FeliCa, MIFARE, China Transit, CEPAS) and simply called it Global NFC. Real Global NFC.

Until the industry does a better job of integrating NFC hardware and the various middleware pieces into a virtual whole, NFC confusion will continue to be a problem.

It would be much better for customers if the credit card industry stopped the contactless payment turf wars and started delivering solutions that help customers instead of sowing confusion.

UPDATE 2019
A reader in the know reports says that payWave on SIM cards is pretty much dead everywhere because the “secure element wars are over.” That’s interesting in light of Huawei offering FeliCa Osaifu Keitai service via Docomo with a SIM card. But that is a Docomo thing more than a Huawei thing.

UPDATE 2021
VISA JP finally signed on with Apple Pay, just in time before the start of the Tokyo Olympics.