Starting from 1 December 2019, the stored value limit of all newly issued Octopus products – including On-Loan Octopus, Sold Octopus, Bank Co-Brand Octopus, Smart Octopus and Octopus Mobile SIM etc., will be HK$3,000.
From a technical standpoint it makes sense to host a new service when the system is ready to automatically upgrade older physical Octopus cards to the new stored value limit when transferred to smartphones. However, I seriously doubt the new stored value limit is a factor in the Apple Pay Octopus launch delay. The protests in Hong Kong that started just before the OCL July announcement are a much bigger factor. I suspect the protests were also a factor in OCL suspending Smart Octopus in Samsung Pay services without any explanation.
The Apple Pay Octopus launch has been on a long damn winding road since beta testing started a year ago. The clock is ticking, if a launch doesn’t come in the next 2 weeks or so, Apple Pay Octopus is a no show for 2019. My take is it will happen in 2020.
As I have pointed out countless times on this blog, Apple Pay Suica is one of the best Apple Pay services that Apple has hosted on its platform so far. The first transit card on Apple Pay remains the best: it combines the speed of the Suica transit card FeliCa architecture, the convenience of the Mobile Suica cloud, and the flexibility of the Apple Pay recharge backend.
This last point is under appreciated. The deal Apple and JR East worked out is the secret sauce: Apple Pay cards in Wallet just work for recharge, from Japan or from abroad, with no extra fees across the board, users earn points for the card of their choice. And users still have the option to recharge with cash if they want to.
Toyota Wallet is built using the PAYCIERGE platform from TIS. The user has a choice between payment with QR/Bar Code in the Toyota Wallet app with Origami Pay or Bank Pay accounts, or payment with a dual mode EMV/FeliCa iD Mastercard prepaid card in Wallet with the backend recharge hosted from Toyota Wallet.
An interesting side note here is that both PayPay and Line Pay have said that FeliCa cards are a possibility. Up until now this has just been lip service. It would be a welcome development if the Line Pay/Yahoo Japan merger produces a FeliCa/EMV dual mode payment option similar to what Toyota Wallet has done.
Toyota Wallet is still not open in the way that Apple Pay Suica is. All of the ‘recharge’ methods are in the SMBC orbit, even iD recharge credit cards have to be SMBC issue (such as Docomo dCard) Visa or Mastercard to avoid hefty recharge fees. It’s not perfect and remains chained to the SMBC financial ecosystem, but Toyota Wallet does point a way forward that I hope Toyota Finance Corp. continues to improve, and that other payment system operators follow.
Summary The Toyota Wallet flexible backend/flexible frontend development is a step forward for digital wallet possibility. This is the first Japanese wallet app where the frontend technology is a simple user choice, not a straitjacket. It shows the innovation possible in Japanese payments market where the focus is on creative thinking. That this kind of innovation comes first on the Apple Pay platform says all you need to know about Apple Pay being open. Compare this approach to the Europe one where the focus is forcing others to solve problems that Europeans should be solving themselves. That approach is a political one, not an innovative solution, or progress.
iOS 13 Wallet gained the ability to directly create a Suica card without an app. Judging from Twitter posts however, it seems inbound visitors prefer SuicaEng for adding Suica to Apple Pay. This is understandable: SuicaEng is a onetime use app that completely removes the ‘set Region to Japan’ to add Suica requirement that confuses people. The region change is only for adding Suica but many people seem to think that the iPhone Region must be set to Japan to use Suica, which is not true: Suica works regardless of the device Region setting. Apple clearly needs to improve the Wallet UI so that users can easily add different country cards without a confusing side trip to Settings and Region.
It doesn’t matter how a user adds Suica to Apple Pay but there are some interesting differences. There are 3 basic variety of Suica cards when buying a plastic one from a station kiosk or creating a virtual one in Suica App: non-registered Suica, registered My Suica, commuter Suica.
Non-registered plastic Suica cannot be re-issued if lost and the balance is gone too, but the arrival of Apple Pay Suica blurred the lines between non-registered and registered My Suica. Technically the distinction is still there and JR East is not obligated to refund or re-issue a non-registered Suica if it stops working on Apple Pay.
Regardless of the variety, when any plastic or virtual Suica is added to Apple Pay the user Apple ID becomes part of the Suica card ID, permanently attaching it to the Apple Pay and Mobile Suica systems like a petrified barnacle. This is the reason why Apple Pay users must refund/delete all Apple Pay Suica cards and their Mobile Suica account if they migrate to Google Pay Suica (and vice versa).
The differences between SuicaEng and iOS 13 Wallet created Suica boil down to:
SuicaEng creates a single non-registered Suica card in Wallet, it cannot create more than one.
iOS 13 Wallet creates a registered My Suica and can create multiple Suica. It’s a very tight integration between Apple Pay and Mobile Suica.
Not that users will notice any difference because all Suica look and work exactly the same way. The differences are hidden away from the users on the backend, exactly as they should be.
The German law to force Apple to open it’s “NFC chip” is a confusing one. Why does an EU country with one of the lowest cashless usage rates single out one company’s NFC product in a last minute rider to an anti-money laundering bill? That’s not banking policy, it is politics. Details are few but let’s take a look at what it could mean because when it comes to NFC technology, details are everything.
Background stuff The so called Apple ‘NFC chip’ is not a chip at all but a hardware/software sandwich. The Apple Pay ecosystem as described in iOS Security 12.3 is composed of: Secure Element, NFC Controller, Wallet, Secure Enclave and Apple Pay Servers. On one end is the NFC chip controller front end that handles NFC A-B-F communication but does not process transactions, on the other end there is the Secure Enclave that oversees things by authorizing transactions. The fun stuff happens in the Secure Element middle where the EMV/FeliCa/MIFARE/PBOC transaction technologies perform their magic with Java Card applets.
The A/S Series Secure Enclave and Secure Element are the black box areas of Apple Pay. The iOS Security 12.3 documentation suggests the Secure Element is a separate chip, but Apple’s custom implementation of the FeliCa Secure Element, and the apparent ability of Apple to update Secure Element applets to support new services like MIFARE in iOS 12 suggests something else, but it is anybody’s guess. Apple would like to keep it that way.
So what does ‘open NFC’ really mean? It’s helpful to look at the issue from the 3 NFC modes: Card Emulation, Read/Write, Peer to Peer.
Peer to Peer Apple has never used NFC Peer to Peer and I don’t think this is a consideration in the ‘open NFC’ debate.
Card Emulation Apple limits NFC Card Emulation to Apple Pay Wallet with NDA PASSKit NFC Certificates. This is what the ‘open NFC’ debate is all about. I imagine that German banks and other players want to bypass the PASSKit NFC Certificate controlled Apple Pay ecosystem. Instead, they want open access to the parts they want, like Secure Element, NFC Controller, Secure Enclave, and ignore the parts they don’t want like Wallet and Apple Pay Servers. They want the right to pick and choose.
The success of Apple Pay has been founded on the ease of use and high level of integration from a massive investment in the A/S Series Secure Enclave and other in-house implementations such as global FeliCa, etc. Outside players forcing Apple to open up the Apple Pay ecosystem represent not only a security risk to Apple but also a reduced return on investment. One commentator on MacRumors said it’s like Apple took the time and expense to build a first class restaurant and outsiders are demanding the right to use Apple’s kitchen to cook their own food to serve their own customers in Apple’s restaurant. It’s a fair analogy.
The NDA PASSKit NFC Certificate gate entrance rubs bank players the wrong way as they are used to giving terms, not accepting them. The Swiss TWINT banking and payment app for example is a QR Code based Wallet replacement that wanted the ability to switch NFC off, and got it.
My own WWDC19 Apple Pay Wish List did include a wish for easier NFC Card Emulation, but nothing appeared. It’s certainly in Apple’s best interest to make it as easy as possible for 3rd party developers to add reward cards, passes, ID cards, transit cards, etc. to Wallet. However given that the EU is hardly what I call a level playing field, the fact that bank players and politics go hand in hand in every nation, and the fact we don’t know the technical details of what the German law is asking Apple to do, all we can do is guess. In general, I think Europe will be a long rough ride for Apple Pay. At least until EU bank players get deals they are happy with.
iOS 13.2 is in the last beta stage, the official release is due October 30. I am happy to report that Suica Express Transit performance levels remain at the same solid benchmark set by iOS 12.4 and later. This is very good news.
Suica notifications are another matter. Notifications have not recovered from the fast sloppy iOS 12.2 Suica Wallet UI redo in preparation for iOS 13 dark mode and the transition from 3D Touch to Haptic Touch. Regular Suica notifications for transit and purchases work fine, but 3D Touch/Haptic Touch notification shortcuts and user set reminders are still broken. Here’s a quick list of the remaining problems. Let’s hope Apple recovers their attention to detail.
Missing Suica notification Haptic Touch global shortcuts: iOS 12 Suica notification 3D Touch shortcuts for recharge and commute plan renewal were global in nature and appeared on all Suica notifications and user set reminders. Recharge shortcuts have reappeared in regular Suica notifications but are still missing in user reminders. Commute plan renewal reminder shortcuts are completely missing.
Commute Plan Renewal Reminders: In iOS 13.2 no matter the what the user set reminder interval is, the renewal reminder only appears once per current commute plan period and never again, which is useless. iOS 12 Suica commute plan renewal reminders would appear after every transit until the commute plan was either renewed or expired.
Sloppy Japanese localization: Suica is a Japanese card and has specific Japanese terms for card operations: adding money is ‘Charge’= ‘チャージ’. The iOS 13.2 shortcut JP text label shows ‘Add money’ instead of ‘Charge’. This is incorrect and does not match the Suica Wallet card UI label for the same operation. iOS 13 has a sloppy reputation and Suica still has plenty of UI bugs such as the Australian/New Zealand English Suica bug.