The Global NFC + Background Tag Reading iPhone SE2

The on again, off again iPhone SE2 is on again now that Delphic oracle analyst Ming-Chi Kuo has checked in. As I wrote before, the iPhone/Apple Watch 2019 lineup is now entirely global NFC. The price cuts are great but there needs to be a lower priced entry model below the iPhone XR with:

  • NFC background tag reading in place for new Apple Pay features going forward.
  • Touch ID that removes the Face ID face mask problem in markets like China and Japan. This issue is a constant blind spot in the western tech press ‘In-screen Touch ID vs Face ID’ debate.
  • A13 Bionic for superior battery performance and Express Card with power reserve
  • Cheaper battery friendly Haptic Touch instead of the more expensive battery hungry iPhone 8 3D Touch.

There kind of device is perfect for the Japan and Hong Kong markets:

The rumored A12 chip iPhone SE2 may well be pie in the sky, but that doesn’t mean that there isn’t market appeal for an inexpensive global NFC iPhone for places like Japan and Hong Kong. Those markets have highly integrated transit networks coupled with highly evolved transit card systems like Suica and Octopus. With both of these on Apple Pay there’s a good opening for a small SE size inexpensive global NFC iPhone, it would do very well.

I imagine the iPhone SE2 could do well in a lot of markets.

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Tokyo Cashless 2020: Are Apple Maps and Siri really Apple Pay level ready for the Tokyo Olympics?

1️⃣ Dear JR East, we need a new Suica Charge App
2️⃣ Consumption tax relief with the CASHLESS rebate program
3️⃣ >Are Apple Maps and Siri really Apple Pay level ready for the Tokyo Olympics?
4️⃣ Blame the Japan Cashless Payments mess on VISA and EMVCo, not FeliCa

Tokyo Cashless 2020 is a series covering all things cashless as Japan gears up for the big event. If there is a topic that you’d like covered tweet me @Kanjo


iOS 13 is not a software release. It’s a mission statement of what Apple hopes to achieve by the end of the iOS 13 life cycle. iOS 13 will be peaking out just as the Tokyo Olympics take place between 24 July – 9 August 2020. There will be a huge influx of inbound smartphones using all kinds of apps for transit, navigation and payments. Apple has told Japanese journalists that Apple services will be ready. How will peak iOS 13 Apple Pay, Apple Maps and Siri stack up with the competition? How useful will they really be? Let’s find out, starting with the strongest contender.

Apple Pay
Apple has put a tremendous effort into creating a global NFC platform that incorporates all the key NFC technologies (EMV, FeliCa, MIFARE, etc.) into one seamless package sold worldwide. This is still unique and unmatched. Inbound visitors with iPhone have the option of adding Suica to Wallet and instantly gaining all the benefits of using Japan’s famous tap and go transit and making contactless payments nationwide.

Apple Pay with Suica makes iPhone a great transit and payment solution for the Tokyo Olympics and Apple Pay Suica will be the inbound star player for all things transit and payments. iPhone and Apple Watch are so perfectly matched for using contactless payments in Japan during the Olympics that I can only wonder if Apple has been planning for this opportunity all along. Make no mistake, Apple Pay is going for the gold.

In addition to Suica support, merchant support is growing for inbound Apple Pay cards as well

Apple Maps
Apple Maps Japan is one of those players with great unfulfilled potential that is never realized. Apple has vowed that Maps will be ready for the Tokyo Olympics. This means that Apple Maps 2.0 for Japan will be ready with new detailed maps, Look Around, and, one hopes, indoor maps that include stations, not just airports and shopping malls.

The biggest use case for Apple Maps during the Olympics is transit directions and local walking area navigation in station areas. Apple Maps is still a very ‘America centric’ app in that default map views and the UI are geared for driving, not transit and walking. iOS Google Maps has a more intelligent approach that layers transit over the current map view that eliminates the transit view/map view UI toggling of the chunky Apple Maps UI. Google Maps is a much more smoothly integrated collection of services.

Even with the addition of better map detail of Apple Maps 2.0 and Look Around however, Apple Maps must absolutely clean up and completely revamp its cluttered cartography and Point of Interest (POI) layers and remove the bolted on transit functions with improved integration to be a serious contender in the Tokyo Olympics Navigation contest. I don’t see that happening: there’s no way 7 years of bad habits and ‘Where’s Wally’ can be magically fixed in the 10 month run up to the Olympics.

Siri
Bringing up the rear, Siri is the ‘Cool Runnings’ contender in the wrong Olympics. With Google Maps you can ask Google Assistant “when’s the next train to Shinjuku” and Google Maps will give you a list of transit options. Google Maps Transit also gives you platform guidance, optimum car positions for the destination station, and ground truth yellow exit numbers:

Siri and Apple Maps offer none of this. In fact Siri is not even programmed at this point to provide transit information and politely declines all such requests (and when did Japanese Siri’s speaking rate speed become so SLOOOOOW?). Even a manual Apple Maps Transit search does not provide the same level of Google Transit information: no platform guidance, no car positions, no crowd conditions, etc. Meanwhile JR East just announced an agreement with Google to offer Google Assistant Shinkansen transit information. This isn’t even a contest.

Quick Summary and Tokyo Olympics iPhone Guidance
Given the current state of Apple Pay, Apple Maps and Siri, I offer the following suggestions.

  • For iPhone 8/Apple Watch Series 3 and later inbound visitors from countries with Apple Pay availability:
    • Add Suica to your iPhone and recharge it with your Apple Pay card from home
    • Use Google Maps and Google Assistant for navigation and transit
  • For iPhone 8/Apple Watch Series 3 and later inbound visitors from countries without Apple Pay availability:
    • Purchase a regular plastic Suica card from a JR East station kiosk and transfer it to your iPhone (Welcome Suica cards cannot be transferred), you cannot recharge it with a credit card but Apple Pay Suica can recharged with cash at any convenience store checkout register, any 7 Eleven ATM, or JR station smart kiosk. The advantage of Apple Pay Suica over plastic Suica is that you always know what the balance is and when it needs recharging. You can avoid long queues at station recharge kiosks.
    • Use Google Maps and Google Assistant for navigation and transit

Apple Pay Suica Needs a Inbound PR Campaign, in English

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.

JR East has done many Apple Pay Suica campaigns aimed at Japanese commuters, it is time that JR East and Apple create an English language Apple Pay Suica campaign for tourists that covers the ease of adding it and using it. Plaster the stations, wrap the trains. Waiting to do everything in 2020 for the Tokyo Olympics is waiting too long.

Update: I forgot to mention that a campaign from JR East and Apple can also help counter the 7pay QR Code security meltdown scandal that has poisoned contactless payments for everybody, even for FeliCa NFC, which has a long successful security track record and absolutely nothing to do with QR.

Japanese eSIM for iPhone XS/XR from IIJmio

Japanese carrier eSIM support for iPhone XS/XR has been completely absent compared to other country carriers. This is about to change finally, on July 18 IIJmio released their beta eSIM product announced earlier this month that offers 6GB of Docomo LTE/3G network data starting at ¥1,520 a month. Voice calls and SMS are not supported, only SIM free or SIM unlocked carrier devices can use the service.

The service is aimed at customers who want to use Docomo, KDDI, SoftBank carrier plans for voice and SNS, and use the IIJ eSIM for cheaper monthly data. The produce is listed as ‘beta’ but IIJ is offering kickoff campaign incentives for signing up through August 28. Hopefully this is the start of more domestic eSIM offerings from Japanese MVNO operators and carriers.

In separate but related news, KDDI announced more overseas roaming coverage for their GigSky eSIM offering.

The Mystery of Apple Pay Octopus and iPhone 7 FeliCa Support

There are a few remaining fuzzy spots in the Apple Pay Octopus saga. The story I broke back in December from trusted sources clearly had a Chinese New Year release target. The story went dark but busted wide open again with the Apple Pay JSON server code leak on June 25 that made it absolutely clear Apple Pay Octopus would finally arrive with iOS 13. Octopus Cards Limited (OCL) had no choice but to issue a premature press release stating ‘Apple Pay Octopus is coming, more details soon’ and nothing else.

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.

In a later post I quoted FeliCa Dude:

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.


UPDATE
FeliCa Dude has answered and posted the definitive take of iPhone 7 FeliCa support for all things from Octopus to iOS 13 Core NFC. We own him thanks for taking the time to cover all the angles in such detail.

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.”