iOS 15 Apple Pay Wallet: the Express Mode difference

Express Transit Suica ruins the Apple Pay experience for using anything else. You want Apple Pay to work that way everywhere but it doesn’t. Most of the time we trudge along using Apple Pay Wallet with face mask Face ID authorization, although the Apple Pay experience on Apple Watch is a big improvement as well as being a trusted device for secure intent.

iPhone users in America are finally getting a taste of Express Transit en masse with the rollouts of Apple Pay for SmarTrip, TAP, Ventra and Clipper. Apple recently rebranded Express Transit as Express Mode on their new Wallet webpage (in Japanese it’s called Express Card). The branding change may seem trivial but it has bigger implications because for first time users of new Wallet services in iOS 15, Express Mode goes places that Express Transit cannot: digital keys and digital ID.

These functions are not new of course, Express Transit cards and Student ID cards have been opening transit gates and doors these past few years. But Express Mode is for everyone and personal: your keys and badge to unlock your home door, unlock and start your car and get you into the office. With these refinements and additions it’s safe to say that iOS 15 Wallet finally delivers the digital wallet dream people have been talking about since 2010. Wallet can replace your wallet.

What’s new
Last year I covered ‘coming soon’ Ultra Wideband Touchless and Code Payment (codeword Aquaman) Wallet developments. The Code Payments feature is still waiting in the wings. Steve Moser kindly confirmed that Aquaman code references are alive and well in iOS 15 with minor changes but this post will focus on announced features. In the WWDC21 Keynote Apple Pay section Jennifer Bailey announced keys and ID. The Wallet features you get from the ones listed on the iOS 15 preview page depend on the device:

Car keys with Ultra Wideband support (shareable)
iPhones and Apple Watches equipped with U1 chip* (iPhone 11 and later, Apple Watch 6)

Car keys without Ultra Wideband support (sharable)
Home keys (shareable)

iPhone XS • Apple Watch 5 and later*

Office key
Hotel key

Apple Watch is not listed: “Device requirements may vary by hotel and workplace.”

ID in Wallet
iOS 15 devices
watchOS 8 devices (the fine print: Not all features are available on all devices)

None of the new features will be available when iOS 15 launches. Expect them with the iOS 15.1 update or later. NFC Car keys launched on iOS 13 and iOS 14 in 2020.

The A12 Bionic • iPhone XS and later requirement for Wallet keys is easy to understand: Express Cards with power reserve. It is vital that people can unlock car and home doors even when their iPhone battery is out of juice. Up to 5 hours of power reserve makes a huge difference, but only for iPhone. *Apple Watch supports Express Mode but not power reserve.

The bigger story is UWB because it is new technology that works with the Secure Element to create a whole new experience. Up to now the Secure Element was exclusively NFC. Not anymore, the Car Connection Consortium (CCC) Digital Key 3.0 specification “maintains support for NFC technology as a mandatory back-up solution.” Digital car key is first and foremost a UWB solution with NFC relegated to the back seat.

UWB connectivity adds hands-free, location-aware keyless access and location-aware features for an improved user-friendly experience…

3.0 addresses security and usability by authenticating the Digital Key between a vehicle and the mobile device over Bluetooth Low Energy and then establishing a secure ranging session with UWB, which allows the vehicle to perform secure and accurate distance measurement to localize the mobile device.

Car Connectivity Consortium Delivers Digital Key Release 3.0 Specification

NTT Docomo and Sony demonstrated UWB car keys in action last January running on Android Osaifu Keitai hardware. Sony (FeliCa) and NXP (MIFARE and UWB chipsets) have worked closely to extend both FeliCa and MIFARE into the UWB Touchless era. The CCC Digital Key specification is open to any Secure Element provider. UWB + Bluetooth Low Energy (BLE) is simply another radio communication layer in addition to NFC.

Diagram from Car Connectivity Consortium (CCR) Digital Key 2.0 White Paper, the recently released 3.0 spec adds UWB
Mobile FeliCa UWB Touchless diagram from NTT Docomo, NXP MIFARE works exactly the same way

This is significant as it opens up UWB to anything that currently uses the Secure Element and NFC. Apple has not spelled it out but suggest UWB might work with Home keys and there is no reason UWB cannot work with all keys, transit cards and Student ID. The WWDC2021 session video Explore UWB-based car keys is a great introduction and highly recommended viewing if you have any interest in the subject. The session is a bit unusual in that the discussion covers RF hardware and performance design more than software. It feels like the target audience is car manufacturers. There is a lot of detail to get lost in but here are some simple but essential points:


Secure Element improvements: the SE has always used unique keys for mutual authentication, this has been extended with ranging key deviation

Secure communication at a distance: UWB and BLE identifier randomization with secure ranging is an important security feature as UWB Touchless works over much greater distances than NFC reader tapping

Zones: the precise motion and positioning tracking of a paired UWB device with a unique key allows for ‘passive entry’ action zones, walking towards the car unlocks it, walking away locks it, etc. without any other user interaction

RF transceiver and antenna system design: is a deep and difficult art that echos the Suica creation story

JR East (Suica) and Hong Kong MTR (Octopus) have both said they are developing transit gates that incorporate UWB. This makes sense as Mobile FeliCa is now UWB savvy but after watching the WWDC21 session video I can only marvel at the complexity of the big picture because UWB is about mapping and using space and movement to perform an operation.

The engineers face countless problems and challenges to juggle in their quest to build a transit gate that delivers the same FeliCa NFC speed and reliability with UWB…at rush hour. They have to consider radiation patters, system latency and processing power, localization algorithms and much more. If they achieve their stated goal, 2023 could be a banner year for transit.

ID in Wallet
Lots of people are excited about the possibility of adding a digital driver’s license to Wallet but as 9to5 Mac’s Chance Miller wrote, we don’t know much about about it at this point. Actually in Japan we do. The Ministry of Internal Affairs and Communications (MIC) released an English PDF: First Summary Toward the Realization of Electronic Certificates for Smartphones with a diagram that explains their digital ID system architecture. MIC remarked back in November 2020 that they are in discussions with Apple to bring the digital My Number ID card architecture to Wallet. The Android version is due to launch in 2023 and will likely employ the Mobile FeliCa Multiple Secure Element domain feature described by FeliCa Dude (FeliCa using NFC-B instead of NFC-F). A similar basic architecture with different protocols and issue process will undoubtedly be used for adding digital drivers licenses.

The Privacy question
I’ll be very interested to see how ID launches in America this fall. Which outside partner company or companies are providing the service to participating states and running the backend? I suspect it will be something similar to Student ID with Blackboard running the service for participating universities. The biggest security question in my mind is who besides the TSA will use ID in Wallet, and more importantly, how? Some governments and transit agencies are pushing face recognition as a convenience in addition to security. My preference will always be for having my ID on my own Secure Element rather than somebody’s cloud server, an ID that I authorize with my own secure intent.

Wallet UI and usability improvements
Wallet App didn’t get the makeover that some users asked for, but there are are a few small improvements. Up to 16 cards can be added in iOS 15, up from 12 in iOS 14. Archived passes and multiple-pass downloads help make Wallet more useable and remove some housekeeping drudgery.

I finally got two WWDC19 Apple Pay Wallet wishes granted: (1) dynamic Wallet cards and (2) region free transit cards. Apple Card does UI things in Wallet no other card is allowed to do. As far as I know this first changed with Disney’s MagicMobile launch on iPhone, Jennifer Bailey calls them “magical moments when you tap to enter.” There are similar low-key card animations in Home key and ID cards. It’s a very small step but I hope Apple adds more over time than just sprinkling seasoning card animations. Done wisely, dynamic cards could improve Wallet usability that convey important card status and account information.

Wallet card animations are slowly making their way into the picture, but will they ever be more than silly pretty fun?

Region free transit cards means that users no longer have to change the iPhone • Apple Watch region setting to add a transit card. In iOS 15 Wallet you get the full list regardless of the region setting. It’s not perfect but it is less confusing than adding a transit card in iOS 14.

Summary
The overall reaction to iOS 15 has been somewhat muted but there are lots of new details. Apple Pay Wallet additions for home keys, office key, hotel key and ID build on technologies that have been on the Apple Pay platform for some time but Apple is leveraging them in new ways.

The unveiling of UWB Touchless is important and cutting edge, that might revolutionize secure transactions. The next step not only for car keys but for transit and other services that up to now have been limited to NFC. And this time, unlike NFC, Apple is leading the way for UWB.

The bottom line is that UWB opens up a lot of possibilities for many current NFC based solutions. Expect UWB Touchless support for Wallet cards in the near future that use Express Mode in new ways, and new UWB based features for a much smarter Wallet.


UWB Gallery
Screenshots from the Explore UWB-based car keys session video

Zones
Zones are is one of the exciting aspects of UWB Touchless, where functions are triggered by the simple act of walking towards or away from the car. It will be interesting to see how this is applied to UWB Touchless transit gates.

Space and movement: the UWB process

Last but not least, Power Reserve mode now supports Find My Network

Apple asks Japan to bring back carrier subsidies for 5G

Journalist Tsutsumu Ishikawa posted an interesting article covering the May 17 Ministry of Internal Affairs and Communications (MIC) industry workgroup meeting examining fair competition in the Japanese smartphone market. Specifically it was a review of the effects from the October 2019 rule changes that eliminated JP carrier subsidies.

What other media outlets didn’t pick up was that Ann Rollins, Senior Director of Government Affairs at Apple attended the meeting and gave a presentation. Rollins pointed out that the MIC rule changes eliminating carrier locked devices and 2 year contracts, haven’t helped the industry (Rollin’s comments translated from Ishikawa san’s Japanese article):

Since the October 2019 rule changes, customer MNP switching between carriers has (seriously) declined instead of increasing, contrary to the objective of the rule changes…

While the smartphone penetration rate is rising, the number of shipments is sluggish. This is due to various factors, such as the lengthening of the handset replacement cycle and the use of used handsets, but from the perspective of the new handset market, despite the big event of switching to 5G, the situation is stagnate…

Unfortunately, the penetration of 5G devices accounts for only 3% of the total number of (Japanese) mobile phone subscribers. For example, there is official data that the penetration rate in South Korea is 17%. In order for customers to actually enjoy the benefits of new technologies and services through 5G, the spread of compatible devices is indispensable, but at present, the spread of 5G is generally sluggish…

Infrastructure and devices can be said to be two wheels. No matter how much you build a highway, it doesn’t make sense if you don’t have cars running on it. Now that the separation of mobile carrier contract plans and smartphones has been achieved, it may be necessary to make an exception for 5G purchases from the viewpoint of promoting the growth of 5G smartphones…

Measures are needed to prevent delays in the growth of 5G. What is important for users is the total cost of mobile phones. Now that complete separation has progressed and low-priced plans have appeared, it is desirable to leave what should be left to market competition to market competitively, which can be expected to further reduce total costs. We request that you (MIC) scrutinize the need to maintain a uniform device purchase subsidy and consider exceptions for 5G in order to provide users with a variety of options.

In other words Apple is asking Japan to let carriers subsidize 5G smartphone contracts…a little. I suspect Rollins was also there to discuss getting the MIC My Number ID card digital initiative coming to Osaifu Keitai devices by 2023, on Apple devices.

Unfortunately the MIC 2019 rule changes came just in time…for the COVID pandemic. iPhone 12 was not even a upgrade consideration for me because NTT docomo switched to 3 year contracts. My iPhone 11 Pro will be paid off by October 2022. When my partner upgraded his iPhone in December, the docomo representative said a lot of customers were taking a wait and see approach. The 5G network is still building out and there is the Face ID with face mask problem. He went with an iPhone SE2 because of price and the ease of Touch ID, the SE unfortunate success factor. I think lots of people did the same which matches another finding of the MIC workgroup: high-end smartphone upgraders have migrated to the middle range.

While there no guarantee MIC will consider Apple’s suggestion, allowing carriers to discount ‘up to ¥20,000’ would help the 5G transition. The market is still repositioning with recent carrier ‘budget brand’ initiatives like NTT docomo ahamo KDDI povo and Rakuten Mobile gaining 1st tier iPhone carrier status. Things are in flux but Apple asking MIC for 5G carrier subsidies does say something about the state of things.

Mobile FeliCa will drive the My Number digital ID card on Osaifu Keitai devices using NFC B, MIC is in discussions with Apple to bring the initiative to iPhone and Apple Watch

UWB Touchless Express Transit and Apple Pay for iOS 15?

A recent sudden surge of hits from Hong Kong accessing my December 2019 UWB Touchless Mobile FeliCa post seemed odd. I dug around and it appears that Hong Kong MTR, like JR East, is making noises about incorporating UWB technology in next generation transit gates.

iOS 14.5 added a new PassKit call for Bluetooth and the U1 chip integration since iPhone 11 and Apple Watch 6, coupled with global FeliCa support certainly puts Apple ahead of the game. I have no idea what WWDC21 will deliver but more UWB integration is a given.

Apple only mentioned UWB Touchless at WWDC20 in connection with digital car key without showing anything because the Car Connectivity Consortium Digital Key 3.0 spec was a work in progress. Now that the spec is in-place with BMW said to deliver car models incorporating UWB Touchless this year, will Apple show it in action? I think it’s highly likely, but since Car Key is a ‘Wallet Card’, and Wallet app Express Cards come is 3 types: Transit, Student ID, and Car Key, the more interesting question is…will Apple also show Touchless Transit and Student ID Express Cards? And what about Apple Pay?

People think Touchless is a completely new thing for ‘keep smartphone in pocket’ transactions, and they worry about security. You can’t blame them because marketers are selling the in-pocket payment experience. However, Touchless is simply long distance NFC without NFC. All UWB Touchless does is describe the frequency to use Bluetooth instead of NFC. The background stuff, secure element and so on, is exactly the same. This means user interaction is the same. For walking through transit gates and security doors, or unlocking your car, the convenience of Touchless is easy to understand: no more NFC tapping, just keep moving.

What about Express Card payments? The current Apple Pay Suica payment checkout experience: the user taps Suica on a touchscreen, or tells the clerk “Suica” then holds the device to the reader. The user has to give consent before the transaction is activated by checkout staff or the self checkout reader. For Apple Pay EMV transactions users have the extra step of confirming a transaction by Face ID/Touch ID to complete it.

Realistically however, in what situations does Touchless make store checkout more convenient and faster? Drive thru certainly, supermarkets…maybe, but most stores will probably not want to invest in Touchless without a good reason when the NFC readers they already have installed get the job done. There is one more interesting role that Apple has planned for UWB however, one that promises to improve the entire Apple Pay and Wallet experience: communicating with the reader before transaction to select the right Wallet card for the job, at a distance, for a truly smart Wallet app. With national ID cards, passports and more coming to Wallet at some point, UWB could be the Wallet reboot we really need.

And then there is EMVCo. The problems with UWB Touchless for EMVCo are that: (1) Touchless only works with devices with batteries, á la AirTag, and doesn’t work with the current plastic card model, (2) UWB + Bluetooth level the digital playing field with FeliCa and MIFARE, no more ‘real’ vs ‘who cares’ NFC hardware flavors to split hairs over. The plastic card NFC limitation is probably a bitter pill for everybody but especially for EMVCo members and issuers as plastic card issue is big business, and many customers are more comfortable with plastic cards. For those reasons I think EMVCo will be the last to support UWB Touchless, if they do at all. On the plus side Touchless does give digital wallet platforms an edge to create smart aware wallets, digital does NFC and Touchless, plastic only does NFC. We’ll find out about Apple’s UWB Touchless roadmap at WWDC21.

Japan’s new economic zone: Rakuten

The April 30 addition of iPhone 12 lineup to Rakuten Mobile marked the transformation of Rakuten Mobile into a first tier carrier on the same level of Docomo, KDDI au and SoftBank. Now that SoftBank is taking Rakuten to court over allegedly stolen SoftBank corporate secrets, I think we know who is feeling the pressure. It is the end of an era. SoftBank was the first carrier to launch iPhone in Japan back in 2007 when NTT Docomo refused and KDDI au could not (the Verizon iPhone problem). They cleverly used iPhone to leverage their position from an industry also-ran into a serious first tier carrier grabbing marketshare for the other majors.

Rakuten Mobile is now playing the hungry upstart with fresh ideas and aggressive plans: pay for what you actually use instead of paying for a monthly allotment just like the good old land line days…how original. Nevertheless SoftBank feels threatened not only by Rakuten Mobile but the total weight of the Rakuten Empire: Rakuten Pay which encompasses Rakuten Edy and Rakuten Suica, and most of all, Rakuten Point.

SoftBank has similar parts, PayPay and TPoint/TMoney, but they are not well integrated across the SoftBank empire and more importantly, they don’t have the synergy of Rakuten. That’s why people in their 20~40’s are sometimes referred to as living in the Rakuten economic zone, leveraging Rakuten Point as currency ‘plus’ to make their real money go much farther for all of their needs.

But there’s one more thing. Now that Rakuten Mobile has the full iPhone lineup, it’s only a matter of time before Rakuten Edy and Rakuten Suica join Apple Pay. That is SoftBank’s true nightmare.

Sitting out the super upgrade cycle

We are in a 5G super upgrade cycle but I’m sitting this one out. 3 year carrier contracts without subsidies are the norm in Japan now, technically I have until September 2022 to pay off my iPhone 11 Pro but 5G by itself isn’t enough reason to pay it off faster. If foldable smartphones are the super upgrade in 2023, I’m probably going to sit out that super upgrade too.

Why? After buying into the iPhone X hype and getting badly burned by the iPhone X NFC problem, I was badly burned again by Face ID in the COVID face mask era. And no, iOS 14.5 Unlock with Apple Watch is no magic solution. I’m not done with new cutting edge technology but sharp edges hurt. Less is more in the long run. Let’s just say I’m going to choose my next iPhone upgrade very carefully.