Apple Platform Security May 2022: Tap to Pay on iPhone, Express Mode scare mongers and other fun

Ahh springtime, flowers and the annual Apple Platform Security (APS) update. This year’s version has many Apple Pay housekeeping changes. Previous versions put everything Apple Pay in a single section. In keeping with Apple spinning out iOS 15 Wallet app as a separate identity, Wallet has its own separate section now, covering all the things Jennifer Bailey unveiled at WWDC21: hotel-home-office keys and ID in Wallet. The Apple Pay section adds a new category for Tap to Pay on iPhone with some interesting bits.

The Tap to Pay on iPhone servers manage the setup and provisioning of the payment kernels in the device. The servers also monitor the security of the Tap to Pay on iPhone devices in a manner compatible with to the Contactless Payments on COTS (CPoC) standard from the Payment Card Industry Security Standards Council (PCI SSC) and are PCI DSS compliant.

The Tap to Pay on iPhone server emits decryption keys to the Payment Service Provider after validation of the integrity and authenticity of the data, and after verifying that the card read was within 60 seconds of the card read on the device.

What’s interesting to me is that Tap to Pay on iPhone servers are providing a seamless payment reader experience in the same way that Apple Pay servers provide a seamless pay experience. It just works, from setup to use, the same tight integration allows payment service providers to focus on POS app development and forget about the hardware because Apple Pay takes care of everything. As Junya Suzuki tweeted recently, a lot of payment reader hardware is suddenly junk compared to what iPhone is providing with tight mobile integration and Tap to Pay servers on the backend. Now with Tap to Pay apps on the horizon, good thing that iOS 15 Wallet expanded the secure element max to 16 ain’t it?

Speaking of Wallet, this separate section covers all things “access credential” related (hotel-corporate-home-car-student ID) with App Clips suggested for provisioning multifamily home keys. Transit now includes eMoney cards (or is it e-Money, Apple seems confused about it just like Express Mode vs Express Transit) and IDs in Wallet is covered in detail. There is also an intriguing iOS 15.4 Wallet security tweak:

In iOS 15.4 or later, when a user double-clicks the side button on an iPhone with Face ID or double-clicks the Home button on an iPhone with Touch ID, their passes and access key details aren’t displayed until they authenticate to the device. Either Face ID, Touch ID, or passcode authentication is required before pass specific information including hotel booking details are displayed in Apple Wallet.

It sounds almost exactly what we already do with regular Apple Pay cards. Perhaps keys and passes only show a generic icon and checkmark with Express Mode with the double-click + authentication required for show details…it’s not very clear.

Speaking of Express Mode, ‘security experts’ are still scare mongering the masses with the tired old Russian security expert/Apple Pay VISA Express Transit exploit story that made the rounds last November, regurgitated by Forbes in the over the top scary sounding, and sloppily written (this is Forbes after all), “How hackers can drain your bank account with Apple and Samsung tap and pay apps“.

The whole security expert thing reminds me of what my uncle the doctor (who ran a medical research lab at Columbia University) used to say about his disdain for pharmaceutical companies, “They don’t want to cure you, they just want to keep ‘treating’ you with their medicines.” Human nature never changes. The gist is that EMV Express Transit Mode will always be a thorn in Apple Pay’s side because the security is up to the card companies.

The document is worth your time is you have any interest in Apple Pay and Wallet.

State of Suica 2022

Now that the 1st wave of Suica 2 in 1 card launches is complete, it’s a good time to review the ‘State of Suica’. And it’s always interesting to examine the cultural differences too, when it comes to labeling trends as ‘good’ or ‘bad’. Westerners for example invariably say, what’s the point of having so many Suica card flavors? It’s a waste, better to have just one. It’s a classic double standard professing to want but insisting that life should revolve around single kind of credit card. Japanese don’t seem to care much as the culture is adept at ‘振り分け’: this thing for doing this, that thing for doing that. And the region affiliate users getting Suica for the first time seem pretty excited and all Suica varieties work the same for transit and e-Money purchases.

As of now we have the following plastic Suica card flavors beside the regular Suica available at station kiosks: Rinkai Suica, Monorail Suica, Welcome Suica and Suica Light. On the Mobile Suica side we have: Osaifu Keitai, Apple Pay, Google Pay, Fitbit Pay and Garmin Pay, along with branded Mobile Suica for Rakuten Suica and au Suica on Osaifu Keitai and Mizuho Suica on iOS. Last but not least we have 11 new Suica 2 in 1 Region Affiliate Transit cards that are the keystone of JR East’s MaaS strategy.

What exactly are the differences? It comes down to commuter passes or points. For Suica 2 in 1 cards specifically, it is both. This is a small but very important difference. All the other non-regular Suica outside 2 in 1, come with specific features and limitations. Rakuten and KDDI au users can recharge those Suica with those outside point systems but they can’t add commute plans. Welcome Suica expires in 28 days, Rinkai and Monorail Suica exist for commuter passes and nothing else, and so on.

Suica 2 in 1 doesn’t have limitations and does more than any other Suica: it can hold 2 different commuter passes (one from JR East, one from the region affiliate) and it supports 2 different point systems: messy JRE POINT which is an optional account setup manually linked to the Suica card number, and local government subsidized region affiliate transit points which are automatic and stored on the card itself. The only thing the user needs to do is use the appropriate card for transit to earn and use transit point discounts.

In a mobile payment era where everybody is distinguishing themselves with increasingly complex reward point schemes, the simplicity and flexibility of Suica 2 in 1 transit points, think of it as locally processed transit point stored fare, can go places that old Suica cannot. Imagine how many more people would use Suica transit in Tokyo if it came with transit point discounts. There are other 2 in 1 features not yet supported by regular Suica: disabled and elderly transit user discounts. These are coming to Tokyo area plastic issue Suica, and PASMO too, this October though I suspect those won’t come to Mobile Suica until it gets an upgrade.

Mobile FeliCa hasn’t been updated to the next generation ‘Super Suica’ FeliCa SD2 architecture yet, but once updated we should see Suica 2 in 1 on mobile and new Suica features, along with more Suica 2 in 1 Region Affiliate cards. All in all the new Suica 2 in 1 card format tells us where JR East wants to go.

There are some interesting numbers from the JR East FY results. All things transit took a huge hit in FY 2021 from the COVID pandemic, Suica included, but are now recovering though still below pre-covid transaction levels. Another surprise is the popularity of Eki-Net eTickets, a 39% usage rate is not bad for a service that only started in March 2020. One of the smarter things JR East did with Eki-Net eTicket discounts is making them simple and available to all Eki-Net users and credit cards. The JR Central EX system has 2 different Shinkansen eTicket tiers (EX-Press and smartEX) with larger EX discounts limited to select credit cards.

There are lots of things that JR East needs to do longterm, more Suica day passes, Mobile Suica recharge that is available 24/7, phasing out legacy mag strip ticketing and UWB touchless transit gates. In the short term we have Cloud Suica and Mobile ICOCA coming online in March 2023, the end of the current fiscal year. At the very least it should be an interesting time for JR West ICOCA users, and one more nail in the PiTaPa coffin.


Apple removes region requirement for Suica, swaps recharge with top up and other updates

Sometimes it takes Apple support pages a while to acknowledge the current reality of iOS. iOS 15 Wallet brought ‘region free’ transit cards with an improved UI so that allowed Apple Pay users from anywhere to add transit cards directly in Wallet. Apple support document HT207155 “Add a Suica or PASMO card to Apple Wallet removed the ‘device region set to Japan’ requirement in an April 29, 2022 update, some 6 months after the iOS 15 release.

‘Region free’ transit cards are not all equally region free however: some transit cards only accept locally issued Apple Pay cards for adding money. This is the case for Hong Kong Apple Pay Octopus and all Chinese T-Union brand transit cards (too many to list). Octopus does offer a surprisingly user unfriendly iOS Octopus for Tourist app for tourists add Octopus to Wallet, that unfortunately locks in usurious currency exchange rates.

Suica remains the first, and best, truly region free transit card because you can “pay for transit rides and make purchases with just a tap,” and all Wallet payment cards that support in-app payments are good for adding money to Suica (and PASMO).

There are also some interesting tweak updates in the companion support doc: Use Suica or PASMO cards on iPhone or Apple Watch in Japan. The first is Apple going all in with the UK English ‘top up’ as the default English word for adding money to prepaid cards. Why not stick with regional differences? Does Apple want America to become a cultural extension of Great Britain or something? Recharge was used previously in the US doc version though I suspect most Americans would use reload here. ‘Top up’ is too UK for my tastes and should only be used when drinking. I’ll stick with recharge.

The other change is an expanded Check the balance section that now includes If your Suica or PASMO card balance doesn’t update, with a link to a fairly new support doc, “If your transit card balance doesn’t update in Apple Wallet.” If there is one common complaint from Suica and PASMO users it is that the sometimes sluggish Apple Pay recharge process, usually due to a poor internet connection, occasionally results in the balance not updating. As the Apple doc states: the truth is always in the recent transactions list.

The last new tweak is a new section: Get a refund for purchases made with your Suica or PASMO. It has good advice that should have been there from Apple Pay Suica launch day, “return the item to the same terminal where you made the purchase before you use Suica or PASMO to make another purchase using Apple Pay.”

Unfortunately Apple failed to update has the Use the Suica or PASMO app section, leaving some very outdated and incorrect information. Shinkansen eTicket service in Suica App ended back in March 2020, and Green Car tickets were never available in PASMO app.

I guess they were too busy swapping American English with British English to notice the errors.

Add a Suica or PASMO card to Apple Wallet: no more region settings

In the Apple Pay monopoly debate context is everything

John Gruber did everyone a favor outlining some of the stakes at play in the remarkably glib, “Remarks by Executive Vice-President Vestager on the Statement of Objections sent to Apple over practices regarding Apple Pay.” The objections are annoyingly vague and refuse to specify how Apple Pay stifled competition and innovation:

(The) Digital Markets Act will…require companies designated as gatekeepers to ensure effective interoperability with hardware and software features they use themselves in their ecosystems. This includes access to NFC for mobile payments.

Today’s case addresses a conduct by Apple that has been ongoing since Apple Pay was first rolled out in 2015 <sic, 2014 actually>. This conduct may have distorted competition on the mobile wallets market in Europe. It prevented emergence of new and innovative competition that could have challenged Apple.

Mark Gurman and Jillian Deutsch at Bloomberg also did everybody a favor unmasking PayPal as one of the instigators behind the EU Commission Apple Pay investigation. Yes, that PayPal…the financial service that snuffs out user accounts whose politics they don’t like, or worse just seizes their money.

Both pieces miss important context surrounding the debate however…and with this issue context is all, especially how Apple Pay is playing out in other global markets. Most of what follows I’ve covered in earlier posts but hope to pull the various issues together in one post. Yet again, we kickoff with an updated Apple Pay diagram.

‘Open’ NFC, gatekeepers and secure element wars
Europe has been calling Apple Pay unfair since the very beginning, with many EU member banks holding out as long as they could. German banks only joined Apple Pay in December 2018 when Vestager was already actively seeking Apple Pay complaints. Less than a year later Germany passed a bill to force Apple to ‘open’ their NFC chip. Australian banks tried the same in 2017.

The so called Apple ‘NFC chip’ is not a chip at all but a hardware/software sandwich. The Apple Pay ecosystem described in iOS Security is a collection of tightly integrated polished pieces: Secure Element, Secure Enclave, NFC Controller, Wallet and Apple Pay Servers, all wrapped into a slick, easy to use UI with a final security wall of ‘secure intent’, a double-click side button hot-wired to the Secure Element. This approach has been so successful that people divide mobile payments history into pre-Apple Pay and post-Apple Pay eras.

NFC has been on Android far longer than iPhone, and ‘open NFC’ at that, but is far less successful capturing mobile payment users than Apple Pay. This is because Android device manufactures made the classic mistake of taking the ‘let’s take awesome NFC technology and figure out how we’re going to market it’ approach. Jennifer Bailey’s Apple Pay team choose the hyper focused Steve Jobs approach of starting with the customer experience and building backwards while asking: “what incredible benefits can we give the customer, where can we take the customer?” That choice made all the difference.

Apple Pay has a very simple rule: any card that loads a Java Card applet into their embedded secure element (eSE) has to reside in Wallet app. The maximum number depends on how many Java Card applets it can hold at any one time, the previous limit was 12, the iOS 15 Wallet limit is 16 cards. Developers have two ways to access iPhone NFC: 1) Core NFC framework for NFC operations that don’t use the secure element, 2) Secure Element pass certificates for NFC operations that need secure element transactions (payments, keys, ID, passes). Any developer who wants to run applets in the eSE has to apply for a PassKit NFC/Secure Element Pass Certificate. This is covered by NDA but a company called PassKit (not Apple) gives us an idea what Apple’s Secure Element Pass guidelines are:

Apple care a great deal about the user experience. Before granting NFC certificate access they will ensure that you have the necessary hardware, software and capabilities to develop or deploy an ecosystem that is going to deliver an experience consistent with their guidelines.

The end to end user experience, the whole reason behind the success of Apple Pay. But this gatekeeping is what riles banks and financial service providers who want to load their applets into the secure element without the Apple Pay gatekeeping, without the Apple Pay ecosystem and without the Apple Pay commission. They want to do their own transactions with their own app for free. This is what the EU Commission means when Vestager says: “Evidence on our file indicates that some developers did not go ahead with their plans as they were not able to to (sic) reach iPhone users.” It should read: when they were not able to reach iPhone users for free. Either the developer didn’t apply for a Secure Element Pass, didn’t pass the certification process, balked at Apple’s certification conditions, or couldn’t agree on Apple Pay commission rates.

Secure element gatekeeping is not new, it is an essential part of the secure element system:

A Secure Element (SE) is a microprocessor chip which can store sensitive data and run secure apps such as payment. It acts as a vault, protecting what’s inside the SE (applications and data) from malware attacks that are typical in the host (i.e. the device operating system). Secure Elements handle all sorts of applications that are vital to our modern digital lives…

Mobile Payments
Here, the Secure Element securely stores card/cardholder data and manages the reading of encrypted data. During a payment transaction it acts like a contactless payment card using industry standard technology to help authorize a transaction. The Secure Element could either be embedded in the phone or embedded in your SIM card.

Lifecycle management
It’s crucial that SE-embedded devices are secure throughout their lifecycle. That’s why Secure Elements need to have an end-to-end security strategy. It’s no use developing a robust security solution for a device which becomes obsolete after a period of use. This is why Secured Elements can be updated continuously to counter new threats.

What is a secure element?

Few people, especially a PayPal or EU Commission vice president, discuss the crucial secure element lifecycle management aspect. It’s not convenient for them to say the secure element ‘gatekeeper’ is responsible for keeping it secure. Far more convenient for their arguments to omit this, portray gatekeeping as unnecessary and gatekeepers as evil. In the end however, Apple has to maintain secure element updates from the various licensed secure element providers (EMV,FeliCa Networks, MIFARE, and so on) if secure payments are going to work at all This is what people who say, ‘it’s my device, we should be able to use NFC how we want,’ do not understand.

People also forget that nothing is free, you get what you pay for. With Apple Pay as gatekeeper, users get simplicity, innovation and feature updates. Simplicity: users get NFC they can use out of the box without Android-like NFC complexity such as secure element positions and obscure express mode settings.

Innovation: Apple Pay has features like Global NFC. iPhone and Apple Watch are the only smart devices that come with FeliCa built in as standard to use in Hong Kong or Japan, while Android limits functionality by market region. It’s astounding that Android, not even Google Pixel Android, has matched this basic functionality yet. We’re seeing more innovation as Ultra Wide Band (UWB) extends Wallet functionality to include ‘Touchless’ car keys and eventually, UWB enhanced automatic card selection as you approach the reader; more helpful than you might think.

Feature updates that, ‘just work’: the recent seamless Apple Cash switch from Discover to VISA, PBOC 2.0 flavored China T-Union transit cards, MIFARE Student ID, or the addition of in-app purchases and dual mode NFC for Japanese VISA card users when VISA JP finally buried the hatchet with Apple.

And the lesson? Apple Pay changed everything in the Japanese payments market, a catalyst that opened up competition and payment choices, for everybody. All boats rose together. It’s one of the most vibrant payment markets that Apple Pay operates in.

Japan is key to understanding what’s really going on in the Apple Pay monopoly debate. Japan was the first market with an established mobile payment platform in place, long before mobile EMV contactless payments took off in Europe. iPhone also has a much larger marketshare in Japan than it does in Europe. It’s a shame people pass up the opportunity to learn from the successes and failures here.

So what’s the EU Committee vision for ‘open NFC’? I think it’s a rehash of the secure element wars when carriers locked mobile payment services to SIM contracts. In 2013 Google incorporated SimplyTapp HCE (Host Card Emulation ‘secure element in the cloud’) technology as a NFC ‘workaround’ to ‘free’ NFC from the evil clutches of mobile carriers. Sound familiar? Android NFC has never been right since.

How little things change, swap ‘evil mobile carriers’ for ‘evil Apple’ and you have the same self serving ‘open’ vs ‘closed’ NFC chip nonsense that people are debating today. FeliCa Dude, the ultimate industry insider who has experienced it all, said it best: ‘It’s all eSE or nothing now.’

And yet we now have Île-de-France Mobilités (IDFM) turning back the clock, circumventing the eSE on NFC equipped Android devices and going all in with HCE for IDFM’s Smart Navigo service for Android. To me this says all you need to know what European priorities are regarding the ‘open NFC’ model: eliminate eSE gatekeepers by forcing the less secure network dependent HCE as a required option. Good luck with that. From a transit perspective, based on Mobile Suica user experiences, I don’t think HCE Smart Navigo will be a smooth ride.

The EU Committee ‘open NFC’ vision might look ideal…to Apple Pay competitors. Regular users however, will have to deal with the ugly reality of multiple NFC apps, multiple NFC secure element modes and clashing updates that cancel out NFC services. Apple Silicon eSE space is limited to 16 cards. If that sounds like a lot now, wait until you have credit cards, transit cards, home, car and office keys and ID installed along with ‘open’ NFC apps wanting their own eSE space too. Services will be squeezed out forcing the user to intervene. If the EU Committee thinks this environment fosters competition and innovation while growing mobile payment use, dream on.

Japanese tech journalist Junya Suzuki has covered NFC mobile payment developments in Europe, America and Japan for over 2 decades. He doesn’t think the EU is playing an even hand here, in his opinion Samsung and Huawei would never face the scrutiny that Apple now faces. In typical European cultural fashion, EU motives pay lip service to fair open markets while playing an underhanded game of chess to make Apple do what EU banking interests want Apple to do. In other words, a double standard.

What does Apple need to do?
I’ve always said that Apple needs to make the Secure Element Pass application process as transparent as possible. Keeping the blackbox NDA process as it is now makes Apple Pay a target, increasingly difficult to defend the status quo. Secure Element access on the level of Core NFC is a long shot, the very definition of a secure element means there has to be a developer certification process similar to EMVCo, FeliCa Networks, MIFARE, Calypso Networks Association, etc., that protects the privacy and business interests of all parties. But it would be great if there is a middle way where Apple can securely open things up for iPhone as a digital wallet, and iPhone as a payment terminal. We’ll see if Apple has anything to say about the subject at WWDC22.


Recommended reading: Ruimin Yang’s wonderfully detailed analysis, “Apple Pay monopoly, are we really comparing ‘Apples’ with ‘Apples?“outlines the entire Apple Pay system architecture, how it compares to other digital wallet platforms, (Google Pay, Samsung Pay) and what ‘open vs closed’ means in the ‘Apple Pay is a monopoly’ debate.

The PASPY thing

HIroden, NEC and LECIP team up for the new system announcement that replaces IC smartcard PASPY in 2024 (Hiroshima Home TV)

PASPY announced today that PASPY transit IC card service ends March 2025. The official replacement has been announced, billed as the “the fist Account Based Ticketing system in Japan” (yeah right) and launches October 2024. Main PASPY operator Hiroshima Electric Railway Co.,Ltd. (Hiroden) has been thinking out loud since last May that they planned to go all in with a QR Code smartphone app. Twitter users complain, a lot, that QR will be an inconvenient pain in the butt over what they have now.

Here’s the thing, most people assume that killing PASPY card means Hiroden and Hiroshima region PASPY transit partners will rip out all the FeliCa readers and replace them with optical code readers. I don’t think so. FeliCa PASPY cards will disappear but not the transit IC readers. If you listen carefully to Hiroden’s bitching and moaning about having to shoulder PASPY system costs from the PASPY/FeliCa fare processing server side (that the PASPY partners don’t help us enough with…boo-hoo-hoo). Dump that and get out of the plastic card issue business, leave ICOCA / Transit IC readers where they are and let them handle their own fare processing, retrofit a QR scanner or install Denso Wave QR+NFC readers, toss out a QR PASPY app and the PASPY associates can call it a day.

PASPY had all the limitations of region transit cards: no e-money functions for store purchases to juice the recharge business side, slowly declining ridership, and the card could not be used on JR West ICOCA and larger Transit IC network…limitations that the Suica 2 in 1 Region Affiliate program resolves. Too bad JR West doesn’t have a similar program for the ICOCA region but it says something about JR West and local government relations that Hiroshima City and prefecture officials have kept quiet.

Nevertheless, there are way too many ICOCA and Mobile Suica users out there and Mobile ICOCA goes live 12 months from now. PASPY partners will want to keep those users riding no matter what Hiroden ends up doing. And local government transit subsidies will help keep the Transit IC readers in place. The whole point of transit is encouraging people to use it…right? And if it all works out, for QR based PASPY MaaS with Transit IC support, all the better.