iOS 13 and the Transition to Global NFC

Crowd Cast president Takashi Hoshikawa updated his Japan Cashless map introduced back in January, the cacophony of QR Code payment platforms continues to grow. Just like any gold rush, QR will crash and burn at some point. Big players will gobble up the smaller ones and things will settle down.

But something else is going on. There’s a small but important difference, so small that Takashi Hoshikawa is not aware of it: he labeled the FeliCa section in the upper left corner as NFC.

This is the result of using Apple Pay on a global NFC iPhone where all the necessary hardware and software is seamlessly unified. The old plastic card mentality of different walled off technologies: contactless credit card (EMV), transit card (FeliCa, MIFARE), ID card (ISO 7816), NFC A/B or F, etc. slips away and becomes one seamless NFC Wallet in the mind. This mindset is also on display in SearchMan co-founder Naoki Shibata’s recent article on Rakuten Pay Suica: no mention of FeliCa anymore, it’s just one NFC thing.

This is an important and natural, but quiet progression that will accelerate with the enhanced NFC support in iOS 13 and expansion of new services like Apple Pay Octopus. iOS 13 Apple Pay Wallet will set the standard for global NFC that just works, a standard that Google Pay will struggle to match because of Android hardware fragmentation.

Players that leverage the advantages of global NFC and offer new services based on them, like JR East (Inbound Apple Pay Suica), and Mastercard (NFC switching dual mode bank card services) will gain, while companies that stick with the old ‘one thing’ contactless plastic card mentality, like Visa, will lose. It’s that simple.

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Visa Japan Finally Ready to Sign on to Apple Pay Japan?

IT journalist Junya Suzuki was answering a question of mine regarding dual mode (EMV/FeliCa) credit/debit cards which are somewhat mainstream, even on Docomo dCard, but the plastic issue Sumi Trust Visa contactless cards are EMV only.

I guess Visa Japan still wants to promote payWave (banded as Visa Touch in Japan) over better customer service. Because if Visa was promoting better customer service, they would offer dual mode for plastic cards and Apple Pay like Mastercard and American Express do.

Visa Japan has yet to sign directly with Apple Pay, the reason why Japanese issue Visa cards don’t work for Apple Pay Suica Recharge, but there may be hope. Suzuki san’s tweet suggests Visa Japan might finally sign with Apple Pay, “in the very near future.”

I certainly hope so, but given that Visa Japan has ‘been in discussions with Apple’ to officially join Apple Pay Japan since the service launched in October 2016, and have done nothing the whole time, I’ll believe it when I see it.

Apple Pay Suica Recharge Performance in iOS 12.4 b4 and the Apple Card Connection

Okay A12 Bionic and FeliCa fans, try this on iPhone XS/XR with Apple Pay Suica on iOS 12.4 b4:

  • Initiate a Suica Recharge
  • While the recharge is processing swipe up and you will feel the haptic feedback bump indicating the recharge process has been cancelled, the Apple Pay ‘ka-ching’ all done sound and checkmark never happens
  • On the Suica Recharge screen tap cancel and go back to the main Suica card screen where the recharge is processing and updates the Suica balance
Apple Pay Suica recharge just keeps on going even after cancellation

So, the Suica Recharge process barrels along without giving feedback. iOS didn’t do this before, is it a bug or a feature, and what’s happening? It’s related to what I observed in the previous post where the Suica FeliCa prepaid transaction and EMV Apple Pay postpay processing happened simultaneously because the A12 Bionic Secure Enclave processes FeliCa transactions directly without iOS.

We now have an explanation why EMV Express Transit went missing in the first few iOS 12.4 beta releases: Apple was doing lots of heavy duty Wallet optimization to make the prepaid recharge process fast and bulletproof.

But why? We have an explanation for that too: Apple wants the Apple Card EMV postpay to prepaid Apple Cash card recharge performance to be fast and absolutely bulletproof. The Apple Cash connection with Apple Card is a huge selling point, and Apple is making damn sure that people are going to love it for the reliable Apple Cash e-money recharge performance, even if that means breaking Suica recharge a little to do it.

This kind of aggressive optimization is a good ‘problem’ for Suica to have, and because all things Suica, from the UI changes to the Express Transit performance improvements since iOS 12.2 have been a testing ground for Apple Card, unavoidable. After all, Apple Pay Suica is the closest thing to Apple Card with Apple Cash that Apple has going, making Suica a great test environment for new Apple Pay development. Hopefully Apple will fine tune and fix remaining Suica recharge issues before the final release and Apple Card debut.

Deep Secrets of Apple Pay Express Transit

Apple Pay Suica on A12 Bionic iPhone XS/XR works even in the middle of a recharge

Apple Pay Suica on A12 Bionic iPhone XS/XR is different from other devices because basic FeliCa transactions bypass iOS and go directly to the Secure Enclave. You can see this in action with Express Transit power reserve, but if you observe carefully you can catch it in other ways.

I caught a glimpse today buying ice coffee at a JR station NewDays shop (supplied by Doutor btw). I was recharging Suica with Apple Pay and forgot it was still processing when I touched iPhone XS to the reader. The payment went through without a problem, the recharge completed a few seconds later.

Is this a iOS 12.4 beta thing or did A12 Bionic iPhone do this all along? I suspect it did all along and makes sense: the payment transaction bypassed iOS which was busy processing the Apple Pay recharge and wasn’t ready to post a balance update to the Secure Enclave. Prepaid and postpay processing at the same time…very interesting.

Most people think all Express Transit is the same, but Suica Express Transit prepaid is very different from EMV Express Transit postpay. Suica settles the transit bill in less than 200 milliseconds (ms) locally right at the transit gate, while EMV Express Transit leisurely (500 ms) tells the gate, ‘I am bank card XXX, put it on the bill’ for settlement later between the bank and the transit agency. For EMV there is a lot of backend system work to make that happen, and even then the user sometimes has to tap twice:

EMV Express Transit Option Returns in iOS 12.4 Public beta 4

The temporary absence of EMV Express Transit in iOS 12.4 betas 1~3 has ended, the option has finally returned in iOS 12.4 public beta 4 (16G5046d). OMNY users in New York can use the beta for transit now, but since OMNY itself is one big beta system why bother with beta on beta? I think it’s better to wait for the official release. Portland HOP iPhone users need not bother as they can put real HOP card in Wallet. It’s way better than using a credit card, faster and cheaper too.

The only question remaining is, what kind of Wallet grunt work were they up that they had to remove EMV Express Transit temporarily in the first place?