Starbucks officially adds Suica contactless payments…finally

Apple Pay Suica/PASMO finally joined the official Starbucks payment lineup, something that many people have wanted for a long time. Nothing beats Apple Pay Suica Express Transit for grabbing coffee on the run.

I knew something was coming when Panasonic JT-R600 all-in-one readers appeared in Starbucks stores starting last summer. Initially these were for EMV chip cards and came with ‘please don’t forget to remove your card’ reminder stickers. EMV contactless is missing though I suspect it will come at some point. Other FeliCa contactless payments such as iD, QUICPay, Waon, nanaco, and Edy are also missing. Line Pay QR is accepted at some store locations but remains limited for now.

Suica/PASMO (and other eMoney like Waon) has been accepted for years at Starbucks locations in stations and malls where tenants integrate payment+reward point systems provided by the landlord. Suica/PASMO support is not native however and bolted onto the Starbucks checkout system. For JR East station area locations tied into the JRE POINT system this means double entry Suica payments: once for the Starbucks checkout and once more for the Suica/JRE POINT payment reader. This will remain in place until JR East and other retail landlords (PAMSO, etc.) come up with a better system for integrating JRE POINT (etc.) with Starbucks’ native Suica support. The big takeaway is that Suica/Transit IC is officially supported and earmarked for all locations.

Contactless payments are a welcome step forward but I wish Starbucks integrated their own reward points via NFC VAS instead of barcode in Starbucks app nonsense. That way I could get JRE POINT and Starbucks point with a single Apple Watch Suica tap at JR East station Starbucks locations without the hassle of iPhone Face ID with face mask. And while we’re on the subject of NFC VAS reward point cards…JR East hurry up with that JRE POINT card for Apple Wallet please.

UPDATE
Starbucks is running a ¥100 One More Coffee refill campaign with Suica/Transit IC purchase from January 13~June 30, a ¥50 discount. A good reason to kiss the iOS Starbucks App barcode thing goodbye for the duration and use Apple Pay Suica/PASMO Express Transit instead.

Apple Pay Japan 2020 Wrap Up Wish List

A two word summary for people in a hurry: COVID and PASMO. As everybody in Japan knows at this point, COVID drove cashless payment use more than any government program could, or anything else for that matter. Cashless went from being the perennial ‘next big thing’ to first choice at checkout in a surprisingly short time with a growing number of ‘cashless only’ places. Here’s a short recap of the best and worst all things Apple Pay Japan in 2020.

The Worst: Face ID Apple Pay
COVID meant mandatory face mask wear outside the home. iPhone Face ID users outside of Asia quickly learned that Face ID and especially Face ID Apple Pay really sucks with face masks. Apple tweaked Face ID slightly to alleviate the issue but this is a long term problem with no short term workaround. Apple had the foresight to resurrect Touch ID in iPhone SE 2, the right device coming at the right time. For the time being it will hold up the middle and lower range iPhone user base in Japan. Face ID is such a marketing embarrassment right now that Apple only features Touch ID recharge on the Apple Pay PASMO page. The real short term future proof Face ID Apple Pay fix is Apple Watch.

The Biggest: Apple Pay PASMO
Mobile PASMO finally joined Mobile Suica, first on Osaifu Keitai Android then Apple Pay, the biggest and most important launch for Apple Pay Japan in 2020. Suica and PASMO combined represent 80% of the entire transit IC card market. In terms of pure usability, a large and diverse installed base, with Express Transit powered transit and purchases on iPhone and Apple Watch, PASMO easily beat all other Apple Pay service rollouts this year. Apple had VIP execs and foreign media on hand at the press event, something they haven’t done since the Apple Pay Japan launch in 2016.

The Most Influential: Toyota Wallet
The Toyota Wallet App rollout I wrote about a year ago turned out to be the model everybody is doing now: ‘XX Pay’ or ‘XX Wallet’ app consisting of a user account linked to a bank or credit card with a flexible payment dual mode front end offering QR Code payment via the app and a ‘instant issue’ prepaid card in Apple Pay Wallet. The Apple Pay Line Pay card launched on December 22 is the exact same model. Instant app issue debit and prepaid Wallet cards do away with plastic issue costs and lower the user entry bar, amount other things. Expect more of this in 2021, actually expect everybody to do this in 2021.

The WildCard: App Clips
iOS 14.3 App Clip Code support completed the picture for App Clip developers, but it will take time to see how they play out in a market overcrowded with mobile payment options. I think there is always a chance for a low cost high quality service which intelligently designed App Clips can deliver. The key will be solving the Japanese Softcream Cashless Index (SCI) Challenge: can App Clip cashless do a faster more reliable job than good old food ticket vending machines, without an app and without an account? How streamlined can it be and still be an App Clip? I hope we can find the answers to those questions in 2021… but there’s one more thing.

The Missing: Apple Pay Code Payments
The iOS 14 Apple Pay AliPay/Apple Pay Code Payment has been in open secret test mode for nearly a year with no firm release in sight. If screenshots are anything to go by, Apple Pay Code Payments are done with a virtual Wallet ‘card’ like any other and Apple Pay Wallet cards have certain properties:

  • Direct side button Wallet activation with automatic Face/Touch ID authentication and payment at the reader.
  • Device transactions handled by the eSE without a network connection.
  • Ability to set a default main card for Apple Pay use.

Supporting QR Code payments with an Apple Pay Wallet ‘card’ moves QR payments out of the app and removes some, but not all, of the QR payment friction points. It makes App Clips a better user experience too when all payments can be accomplished with Apple Pay.

Ultimately I hope the Apple Pay Wallet card model moves away from single mode technology and evolves to multimode awareness that encompasses NFC, Ultra Wideband, QR, etc. It has too. Our smartphones must be smart and take care of any payment technology for us. They have to because things are only going to get more complicated. People ridicule the Japanese payments landscape but that will be everywhere. Card companies and banks push EMV as a ‘global standard’ but EMV already comes in different flavors like PBOC, so does NFC (NFC A-B-F-V), and Ultra Wideband is joining the mix.

That’s what digital payments are all about: combining complex things into ‘it just works’ simplicity. Anybody can create or load a Suica, Octopus or PASMO into Apple Pay, without signing up or creating a new account, and start using it for lots of different instant payments. That’s how simple it should always be. That’s my 2021 Apple Pay wish.

Best wishes for a happy and safe 2021.

UPDATE: Reader Apple Pay Wishes for 2021

>Mine would be for VISA Japan to support Apple Pay.

>Mine are resurrecting #FeliCa-based @VisaJP TOUCH (can be rebranded), @id_credit re-attempts @ #FeliCa network expansion overseas starting w/ equipping end-users w/ the technology in new card distribution (via digital & physical), & @JCB_CARD expands @QUICPay_PR network overseas.

Is there an App Clip Code for that?

Embedded NFC integrated App Clip Code (L) and Scan-only App Clip Code (R)

iOS 14.3 is the big coming out party for App Clips now that App Clip Codes are in place. Apple posted App Clip Code HIG documentation, App Clip Code Generation tools and more. There are lots of interesting tidbits and 3 ways to engage:

  • iPhone XS and later models with NFC reader mode: “The NFC-integrated variant uses an iPhone icon at its center that guides people to hold their device close to the App Clip Code.”
  • Pre iPhone XS models without NFC reader mode: “scan it using the NFC Tag Reader in Control Center.”
  • All iPhones using Camera app or Code Scanner: “scan-only variant uses a camera icon in its center to let people know to use the Camera app or the Code Scanner in Control Center to scan the App Clip Code.”

The guideline also states, “for NFC-integrated App Clip Codes, choose Type 5 NFC tags.” Type 5 tags are ISO 15693/NFC V used for library books, medical packaging, ski passes etc., but choose instead of use is a recommendation not a rule. Core NFC lists ISO7816, ISO15693, FeliCa, and MIFARE tag support. NFC Forum Tag definitions are:

NFC Forum TagISOJISNFCProducts/Protocol
Type 1ISO 14443-3-AATOPAZ, various
Type 2ISO 14443-3-AANXP MIFARE Ultralite
Type 3ISO 18093JIS X 6319-4FSony FeliCa
Type 4ISO 14443-4-A
ISO 14443-4-B
A/BNXP MIFARE DESFire
Type 5ISO 15693VNXP ICODE, various
The Wikipedia NFC tag table is also helpfully detailed

So why is Apple going to all this trouble to market App Clip Codes? They could have done it all with QR Codes and NFC tags but App Clips are mini apps, App Store quality apps without the App Store. The branding of App Clip Codes defines a different and unique user experience. The NFC reader mode App Clip experience is slick ‘point and run’ fun, but the 2 for 1 ‘scan only or NFC embedded’ in one App Clip Code is practical: (1) physically accessible and close = NFC, (2) physically inaccessible or far away = code scan.

There will be many different App Clip user experiences running from general app launches to specific actions. Based on my Kitasando Coffee App Clip experience I would say, the quicker and more focused the App Clip experience, the more likely the user will use it again or go in for the full app. Apple’s HIG documentation emphasizes clarity and simplicity…good advice.

Now all I want to know is when can I finally buy softcream with an App Clip.

Practical advice from App Clip HIG

Japan Cashless 2020 Retrospect

As we look back on 2020 there are 2 big divides: COVID and cashless. We suddenly found ourselves in a world where all human contact is conducted behind face masks and sheets of clear plastic. Not touching anything not ours is the rule of daily life.

The year started with the Japanese Cashless tax rebate in full swing but the real value of the program, helping smaller merchants to add cashless payments, became clear when the Diamond Princess brought the COVID crisis to Japan big time and real cash suddenly become suspect fomite material. More than anything, COVID fears attached to handling cash drove cashless use in 2020 but are we there yet? Back in July, I said we are. It will be months before official 2020 cashless trend numbers are in, but you don’t need anything more than to ask yourself one simple question:

How much has changed since the October 25, 2016 Apple Pay Japan launch?

Junya Suzuki correctly predicted Apple Pay would be the ‘Black Ships‘ inflection point catalyst for cashless payments in Japan that would change everything. And everything has changed. Cashless is now the first choice that most people want, that most stores want you to use. Cash is the fallback. If grandma want to use it at the supermarket checkout she can take all the time she wants feeding bills and coins into a checkout payment machine. Just one more choice in the every growing payment option menu.

There were other cashless developments in 2020, such as the Yucho Bank security scandal that hit the Docomo Account first, then other online payment services. The end result was that QR Code players (PayPay, Line Pay, etc.) took a hit and for the time being cannot recharge from a bank account. It knocked the wind out of QR Code payment mania that I don’t see returning.

On the transit front the biggest news was the Mobile PASMO Android and Apple Pay PASMO launch. Geographically these only cover the Kanto region but Suica and PASMO combined represent 80% of the Japanese transit IC card market. As Mobile PASMO turned out to be recycled Mobile Suica under the hood, I see it as part of the overall JR East next generation Super Suica that is formally launching in March 2021.

2021 should be an interesting year for contactless payments with Super Suica and VISA Japan finally signing on with Apple Pay. We will see more transit IC card service announcements similar to the Mobile ICOCA one, and if Apple Pay QR Code Payments launch we could see developments in that segment, but 2020 will always be known as the year that Japan finally went cashless.

Super Suica 2 in 1 Region Cards

JR East Super Suica 2 in 1 card announcements are coming regularly and we should hear more as March 2021 approaches. Instead of separate posts I’m listing all cards here and will update the table as new cards are announced.

2 in 1 Region Card List
As of November 30, 2020, we have 6 Super Suica 2 in 1 Region Cards.

RegionTypeAnnouncedLaunchPartners
UtsunomiyaBus & Light Rail2019-7-9March 2021 (Bus)
March 2022 (Rail)
Kanto Transportation
JR Bus Kanto
Utsunomiya Light Rail
Iwate PrefectureBus2020-1-16March 2021Iwate Kotsu Co. Ltd.
Iwate PrefectureBus2020-10-20March 2021Northern Iwate Transportation
Hachinohe CityBus2020-10-21March 2022Northern Iwate Transportation
Hachinohe City Bus
Aomori CityBus2020-11-19March 2022Aomori City Bus
Akita CityBus2020-11-30March 2022Akita Chuo Kotsu Co. Ltd.

Details are spare but from the announcements so far we can expect:

  • Local Branding: Super Suica 2 in 1 Region cards will have their own branding, commuter passes and reward points. I suspect local reward points can be exchanged with JRE POINT as well. There will also likely be special services and discounts for local area residents linked to Ny Number Card.
  • Suica benefits: Though they have different branding, local region 2 in 1 cards are Suica cards with all the Suica infrastructure benefits including Mobile Suica, Shinkansen eTickets, Transit IC compatibility, eMoney, etc.
  • Contactless: eliminating paper tickets and hard cash in areas without Transit IC cards in the COVID era is a good thing though credit card companies are marketing the hell out of it too. More on the subject in a this post.

Super Suica offers the benefits of Suica infrastructure to local transit agencies within the JR East area who don’t have the resources to launch or maintain their own Transit IC card system. Plugging orphaned regions into the wider transit network with the same infrastructure is the sensible thing to do, I wish JR East had done this years ago. We should see more announcements in the coming months and Japanese press coverage as the first services prepare to launch in March 2021.

All 2 in 1 Region Card announcements so far have been for new cards. The next and bigger challenge for JR East will be incorporating existing and important region transit cards inside the JR East transit region such Niigata Kotsu Ryuto and Sendai City Transportation Bureau icsca.

Related Posts
Road to Super Suica: cloud integration and the transit card push to mobile
Road to Super Suica: 2 in 1 shared infrastructure and mobile transit card expansion update
Smells like Super Suica: next generation FeliCa