There’s a very interesting section at the in the Apple Platform Security May 2022 document in the section covering transit and eMoney cards.
Adding transit and eMoney cards to a family member’s Apple Watch In iOS 15 and watchOS 8, the organizer of an iCloud family can add transit and eMoney cards to their family members’ Apple Watch devices through their iPhone’s Watch app. When provisioning one of these cards to a family member’s Apple Watch, the watch is required to be nearby and connected to the organizer’s iPhone using Wi-Fi or Bluetooth. Family members are required to have two-factor authentication enabled for their Apple ID for this to occur. Family members can send a request to add money to a transit or eMoney card from their Apple Watch using iMessage. The content of the message is protected by end-to-end encryption, as described in iMessage security overview. Adding money to a card on a family member’s Apple Watch can be done remotely using a Wi-Fi or cellular connection. Proximity isn’t required.
Adding money, remote recharge, is a very handy function for stored value cards in a family setting, especially now that Apple Pay Suica • PASMO will support high school and junior high school school commuter passes from March 18. Commuter passes (commute plans) are purchased in Suica or PASMO app and new versions are coming that support student ID certification. The student takes a picture of their school ID card in the app and uploads it along with a requested commute route. They can use student commuter passes on iPhone or Apple Watch, which is the only wearable option for Mobile Suica • PASMO. All other wearables, including Pixel Watch Suica, do not support commute plans, only regular Suica.
After the student ID is certified they purchase the commute plan. Here is where it gets interesting. If the student does not have a credit card, they can purchase it via the new ‘one time purchase’ option with a parent’s card. Most Tokyo high schoolers already seems to have a Mobile Suica or PASMO, but now that they don’t need the plastic card for going to school, they can buy a commute plan and toss the plastic. That means the Tokyo area HS set will finally be 100% mobile for payments and transit.
But what about the JHS set, especially the younger ones who might not have payments cards? This is where Apple Watch Family Sharing Suica via iMessage comes in handy:
“Hey ma, I need recharge!” “I just gave you ¥5,000.” “But that was Tuesday and I have to eat before going to the Juku, can’t study when I’m hungry”
If I had an Australian dollar for every online complaint of Mobile myki, the mobile version of Public Transport Victoria’s (PTV) myki transit card in the Melbourne region, I could probably purchase a nice bit of property there. Reddit forums regularly erupt with mobile myki mind melting nonsense, invariably bashing Apple for refusing to put myki in Apple Pay because Apple ‘doesn’t support HCE’ or because they charge a ‘30% commission’. Neither of them true. myki is MIFARE which has never used HCE and Apple Wallet already supports lots of MIFARE transit cards.
The whole HCE thing is a straw man anyway: embedded secure elements (eSE) are standard on NFC smartphone chips these days. The reason why Île-de-France Mobilités (IDFM) chose HCE for Smart Navigo on Android for example, had nothing to do with Android devices lacking an eSE, it was simply that IDFM didn’t want to deal with Android manufacturer ‘gatekeepers’. Imagine the nightmare of asking every Android manufacture to issue firmware updates for older devices to support Calypso on the eSE. There was no chance in hell they would listen or do it for free, so IDFM and Calypso spent a lot of time and money creating a special HCE version of Calypso, that doesn’t support Express Transit Mode, just for Android (but not for Samsung Pay devices which use native eSE and support Express Transit Mode).
Why IDFM and Calyspso did this is all you need to know about the chaotic mess that is Android NFC. When Smart Navigo comes to Apple Wallet later this year, it will run on iPhone 8/Apple Watch 3 and later without a hitch in full Express Transit Mode glory because firmware, eSE and software are upgraded in a single iOS update. That’s the advantage of having a good gatekeeper who’s on the job.
As for the 30% commission straw man, Apple Pay doesn’t ‘charge a commission’ for using transit cards, they only take a negotiated commission when a credit card is used to add money to the transit card. Why PTV and Apple haven’t reached an agreement yet is a mystery, but judging from myki user complaints, the mobile myki backend system might not be up to Apple’s user experience high-bar. And the myki system is about to get much more complicated: PTV is hitting the reset button.
Open loop envy PTV has Opal open loop envy and want EMV contactless cards to replace most of myki. This is certainly doable but there is the issue of the native MIFARE myki already on mobile. Oyster and Opal cards are MIFARE too but those systems added EMV contactless support as the foundation for ‘mobile’, relegating MIFARE as legacy plastic. By doing this they offloaded the card issuing operation to VISA/Mastercard/AMEX card issuers, who already have digital card systems in place and agreements with digital wallet operators. myki having come this far with mobile however is going to be a real juggling act, can PVT, or whoever wins the service contract, keep all the service balls in the air while going forward?
There is also the problem of Express Transit Mode support. Look carefully at Apple Express Transit Mode small print and you’ll notice that mobile EMV and mobile MIFARE transit card Express Transit Mode don’t coexist on the same system. It’s one or the other, never both. I suspect a smart Express Mode that chooses the right transit card for the job depends on smart modern transit gate reader hardware with the latest firmware and updated backend software. Getting the latest, greatest transit gates/readers installed takes time and money. Mostly money. Buckle up myki users, it’s going to be a bumpy ride to mobile transit card nirvana.
iOS 15 added big new features to Wallet, expanding digital keys from cars to include home, office and hotels and ID in Wallet driver licenses for the first time. There were smaller but important UI changes too. A new add card screen offered new categories making is easy to add transit cards regardless of the device region and quickly re-add previous Wallet items from iCloud. iOS 15 was all about Wallet to the extent that Apple now advertises it as a separate thing from Apple Pay with a separate web page, and even referred to Apple Pay as “one of the most important areas of Wallet” in the WWDC keynote. Very interesting.
iOS 16 moves the focus back to Apple Pay and making digital payments more useful, practical and universal. The WWDC22 Keynote announced Apple Pay Later, in-app ID card verification and key sharing. Apple Pay Later is one aspect of several new Apple Pay functions unveiled in the What’s new in Apple Pay and Wallet session.
Multi-merchant payments: In our online world we can never be sure how many sub-merchants are involved when we order something and how our card information is shared. In multi-merchant Apple Pay, multiple payment tokens are issued for each merchant in the same transaction, preserving user privacy, with the iOS 16 Apple Pay paysheet showing a breakdown of each sub-merchant charge. This feature works mostly on the backend, but showcases how smartly the Apple Pay Wallet team design features to ‘just work’ securely for merchants and customers.
Automatic Payments My favorite iOS 16 feature as it addresses a lot of interesting use cases, much more than just Apple Pay Later installments which fall under:
Reoccurring payments, which include things like installments and subscriptions, basically any regularly scheduled payment. With the recent Starbucks Japan price increases, I decided to sign up for the new JR East Beck’s Coffee Shop subscription plan. Up to 3 cups a day for ¥2,800 a month. A pretty good deal for commuters like me. The Beck’s subscription service is subcontracted out to an interesting online business venture company called Favy that uses Sign in with Apple to create an account. Payment however is manual credit card entry with the onerous, ubiquitous 3D Secure sign-in. Pass issue and serving size selection (M=¥50, L=¥100 extra) is done in Safari. It works well enough, but canceling or getting payment details is a real Safari expedition. It would be a much better, and faster, customer experience doing it all in Apple Pay.
Automatic Reload: this is the real money feature for me because it plays on the classic snag of using Apple Pay Suica…recharge. All pre-paid cards are a catch-22. Japanese users love them because they like the “I know how much money I’m adding to my card” aspect of manual recharge, but there’s the inevitable, you know you forgot about it, bing-bong ‘please recharge’ transit gate alarm when Suica balance is short.
JR East offers Suica Auto-Charge (auto-reload) as a feature of their VIEW card. The auto-charge option works great with Apple Pay Suica but like all transit card auto-charge, it is tethered to the transit gate NFC system. This means the users gets instant, seamless auto-charge but only on the operator’s transit gates. Suica auto-charge does not work outside of the Suica and PASMO transit gates, not at store terminals, not in other transit card regions like JR West ICOCA. This limitation is a big customer complaint, I and many others would love Apple Pay Suica auto-charge to work everywhere.
Apple Pay automatic reload takes care of this problem very nicely. Suica would recharge anywhere because the card balance ‘trigger’ and reload process is done via Apple Pay and internet connections instead of being tethered to JR East/PASMO transit gates and the Mobile Suica system. JR East could keep auto-charge exclusive to their VIEW cards as they do now but opening it up to all Apple Pay credit cards would greatly increase the usefulness of Suica. JR East could still keep the VIEW advantage with JRE POINT recharge points. Automatic Apple Pay Suica reload would also help alleviate, if not eliminate, the ¥20,000 balance limit problem for most users. The possibilities are are pretty exciting.
Order tracking Another very useful feature I think people will love using. The addition of QR/barcodes in the Apple Pay sheet is a first and will greatly shorten the order pickup~delivery process. The best use case of Apple Pay and bar codes that I can think of.
ID verification in apps This is where ID in Wallet gets real. Wallet app has TSA airport checkpoint verification built-in but that’s not going to help all the government issuing agencies, not to mention software developers, around the world who want to implement digital ID verification to unlock various digital services.
JR East for example has centered their whole Super Suica MaaS Cloud initiative around ID PORT and the ability to match various region or age based services (discounts, special fares, etc.). In other words JR East and their sub-merchant or local government agency want to know where I live and how old I am. This is all provided on the Japanese government My Number digital identity card launching later this year on Android, and Apple Wallet later on. But I don’t want my personal details going everywhere. If the MaaS campaign app or website only needs to know that I live in Tokyo and am over 60, that’s the only info I want to give them. This is what the new PassKit ID request APIs in iOS 16 do: give apps only the information they need to perform a verification for a service and nothing more.
And then there’s Tap to Pay on iPhone. It’s really not an Apple Pay function to me because it turns iPhone into a very handy and portable NFC payment terminal, but it makes sense branding wise. Just say Apple Pay for making…and accepting payments. Anywhere the merchant has their payment provider POS app and a network connection, they are ready to go. This is big. Apple has lined up an impressive number payment providers in a very short time who are happy to leave all the hardware certification and secure element management to Apple and focus on software. I can practically feel the intense interest from Japan where local payment providers would love to leverage the global NFC capable iPhone for seamless EMV and FeliCa payment services. It could be an interesting Apple Pay year.
Any WWDC OS announcement is always a matchup contest of what’s coming for America and what’s missing in other regions like Japan. Let’s take a quick look at what’s coming, what’s not and other quirks on the iOS 16 feature page.
Live Text that actually works for Japanese
Japan finally got Live Text and Visual Lookup. While it’s great that Live Text supports Japanese language, it doesn’t support vertical Japanese text which means there are lots of times when it won’t work. Basically Live Text Japanese is pretty useless without robust vertical text support. And yes it’s depressing to think that iOS and macOS in 2022 still cannot do precise multilingual vertical text selection that QuickDraw GX could do back in 1993.
It’s weird that Apple is advertising transit cards and low fare balance warnings as a new Maps feature. I guess it’s new when it’s new for America. Apple Maps has had low fare warnings for Suica since the October 2016 iOS 10.1 update. The add new card part is new either but low fare warnings aren’t working in beta 1. Bottom line: there is no new transit functionality such as granular route selection, sorting etc., thought the UI is improved and more compact. Walking directions have also added elevation information. As Japan is missing from the WWDC22 announced list of countries getting New Maps this year (countries like Saudi Arabia that have yet to see an Apple Maps Image Collection van), Japan will continue to be the Apple Maps challenged country. I’m pretty sure Taiwan will get New Maps long before Japan does, if ever.
Apple Pay and Wallet
Apple Pay Later is only for America at this point, ditto for ID in Wallet, both missing and no surprise. Order tracking in Wallet is listed for Japan and also key sharing, though BMW is currently the only company offering a digital key for Wallet. Wallet compatible Home-Office-Hotel digital keys have yet to be announced though there are many digital keys on the market for Android.
Live Captions, Control Apple Watch with iPhone, Apple News, Weather app minute by minute precipitation are missing. Siri Japanese voice 1, the guy voice, and voice 2 are new and higher quality. Voice 1 sounds more soft and fey to my ear. That’s okay but the previous guy voice was a bit easier to hear outside with ambient noise.
Amid the swirling EU ‘iPhone must be open’ debate, there’s an angle for everybody. Every proponent, from software developers who want side-loading to payment networks and banks who want open NFC, to EU regulators who want ‘open market’ (yeah right), and especially software ‘security’ companies who want to sell endless fixes for endless security breeches engineered by… you know who, expect a bonanza. iPhone finally released from the Apple walled garden is gonna make everybody rich.
Japanese developers and tech reporter veterans are thankfully more detached and acerbic than passionately hysterical westerners who are more in love with passionate hysteria than clear thinking. Not that they love Apple, Google, Microsoft, etc., or don’t think they should be regulated in some way, they just seem more aware of practical reality. If you want to know what opening iPhone means look no further than this; Everyone’s favorite iPhone will fall prey to shitty antivirus software companies. A world where you throw money away.
Maybe shitty antivirus software companies and shitty bank payment networks will make more money from a heavily regulated and opened iPhone, in the short term, and it will be users who are forced to throw their money away because they don’t understand the complexity being forced on them. As Steve Jobs once said, customers are pay Apple to make those choices and strip away the complexity. Not anymore.
In the new world order there aren’t bundled hardware + software smart devices to choose from, users choose the hardware, then they choose the software. Good luck with that. In the long term, a new world where hardware and software can’t be sold as a closed bundle is going to break a lot of hardware development business models out there, not just Apple’s. All those passionate ‘open’ proponents better be prepared for hard reality when the cut open the iPhone goose that laid golden eggs, and find nothing.