Apple Global NFC Lineup 2019

With the removal of iPhone 7 and Apple Watch Series 2, the new 2019 iPhone and Apple Watch lineup on the Apple Store is finally global NFC across the board. The Apple Watch Series 5 S5 chip did not gain ‘Express Card with power reserve’ or NFC background tag reading this time. The former would be a very welcome addition for the eternally battery challenged Apple Watch, while the later is necessary at some point if Apple wants to use the ‘yet to be formally unveiled’ NFC Tag Apple Pay to kick QR Code payment systems to the curb.

There is something missing in the lineup however: a low cost entry level global NFC iPhone that’s even lower than the price cuts Apple implemented with the 2019 lineup. As Ben Thompson of Stratechery explains in a great post:

That means that this year actually saw three price cuts:
•First, the iPhone 11 — this year’s mid-tier model — costs $50 less than the iPhone XR it is replacing.
•Second, the iPhone XR’s price is being cut by $150 a year after launch, not $100 as Apple has previously done.
•Third, the iPhone 8’s price is also being cut by $150 two years after launch, not $100 as Apple has previously done.

The rumored A12 chip iPhone SE2 may well be pie in the sky, but that doesn’t mean that there isn’t market appeal for an inexpensive global NFC iPhone for places like Japan and Hong Kong. Those markets have highly integrated transit networks coupled with highly evolved transit card systems like Suica and Octopus. With both of these on Apple Pay there’s a good opening for a small SE size inexpensive global NFC iPhone, it would do very well.

UPDATE: What’s the best iPhone for Suica?
A reader asked for my recommendation of a good Suica use iPhone in the 2019 lineup. I do not recommend iPhone 8. The superior NFC and Suica performance, plus the Express Card with power reserve and background tag reading features of A12 Bionic and later is a huge leap over previous models. These enhanced NFC functions are important for new Apple Pay features yet to come. I think it comes down to a choice between iPhone XR and iPhone 11, and how long you plan to use it in Japan.

It’s also helpful to remember that 2019 is the last lineup of 4G/LTE only iPhone. I think iPhone 11 is better optimized for 4G in the long run as Japanese carriers start to switch over bands to 5G. There is also the much better camera to consider. Last but not least is battery. The power optimization of A13 Bionic is going to deliver much better battery performance over a longer period of time.

It boils down to this: if you plan to use the iPhone for 2 years iPhone XR is a good choice, if you plan to use iPhone for 3~4 years iPhone 11 is the better choice.

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Ride the Rails with Apple Pay Suica and Earn JRE POINT

The enhanced NFC functions of iOS 13 could not have come at a better time for the Japanese market. The great 10% consumption tax cashless experiment begins October 1 when the tax hike becomes effective and the Japanese government starts giving 2%~5% refunds for cashless payments via established card point systems. The ‘My Number‘ Japanese Individual Number card will be a centerpiece for getting those point rebates and the Japanese government has already announced iOS 13 support for My Number card. The whole rebate/refund thing is clear as mud but exciting too. Suica is listed as one of the many e-money cards eligible for consumption tax refunds/rebates. Suica consumption tax point refunds will be delivered via JRE POINT.

JR East added to the excitement today with the announcement that starting October 1 Suica users can earn JRE POINT simply by riding the rails. Mobile Suica transit users (Apple Pay Suica, Google Pay Suica, Osaifu Keitai Suica) earn 1 JRE POINT per 50 yen of IC transit fare, plastic Suica cards earn 1 JRE POINT per 200 yen of IC transit fare.

That’s a huge incentive to drive transit users from plastic Suica to Mobile Suica. The same JRE POINT rates apply to Green Car Seat purchases. And get this, only Mobile Suica Commuter Plan purchases and renewals are eligible for JRE POINT with 1 JRE POINT per 50 yen of the purchase/renewal. This is a sweet deal if your company sponsors your commuter pass. They give you the money, you get the points. Ugh, now I have to hold off renewing my Apple Pay Suica Commute Plan until October 1 but the points are worth going without my commute plan for a few days. JR East’s big push for Mobile Suica over plastic is remarkable and will become a shove when the next generation ‘Super Suica’ format arrives in April 2021.

To earn points the Suica card must be registered to a JRE POINT account. The JRE POINT account setup process has gotten a little more streamlined, and the iOS JRE POINT App a little less clunky over the past year. Mobile Suica and JRE POINT systems are now dynamically linked so you don’t need to worry if the Apple Pay Suica card ID number changes.

Today’s announcement only applies to regular train travel but JR East will be adding a lot more in 2020~2021 as the Super Suica start date approaches: JRE POINT for Touch and Go Shinkansen travel starts with the new JR East eTicket system in April 2020, Round trip fixed travel route coupon-like JRE POINT is due December 2020. And finally, with Super Suica in place, the regular express train/Shinkansen ‘EkiNet‘ ticketing and point system will be rolled into the JRE POINT system. Travelers can then earn and use JRE POINT to purchase regular express train and Shinkansen eTickets and upgrade seats. It will be Apple Pay Super Suica eTicket bliss.

Apple Pay on Event Day

Apple Pay is sure to have a segment during the September 10 Apple Event. Here is my roundup of what to expect based on previous coverage.

Apple Card
Apple Card did not get its own press event rollout in August, this will be the closest thing. We will certainly get a feature review and some launch statistics. Long shot call: if lucky we may also get mention of a few more Wallet card feature goodies with the iOS 13 golden master.

Apple Pay for NFC Tags
This was previewed by Jennifer Bailey at her Transact keynote just before WWDC19. There has been no coverage since. NFC Tag Apple Pay works hand in glove with the Background NFC tag reading feature on iPhone XR/XS and later, and the Sign in with Apple feature of iOS 13. The Apple Pay segment makes the most sense for Apple to mention any other products or services that use the enhanced NFC Tag functionality of iOS 13.

The level of global NFC functionality integration across iPhone and Apple Watch is unique. There is nothing on the Android side that matches the seamless combination of Apple Pay Suica + iPhone + Apple Watch, a hardware combination also coming to Hong Kong transit with iOS 13 Apple Pay Octopus. An Apple Watch Series 5 that delivers background NFC tag reading ability integrated with Apple Pay along with Express Transit power reserve would be a very unique feature set indeed.

Apple Pay Transit
Apple Pay Octopus for Hong Kong is on tap for iOS 13, already announced by Octopus Cards Limited. We should get service start updates and details for Octopus, Apple Pay Ventra, EMV Express Transit for TfL. Mentions of Apple Pay myki, EMV Express Transit for LA TAP and more are possible but iffy.

May the NFC be with you.


Bonus iOS 13 Update
Apple’s Where you can ride transit with Apple Pay lists 2 kinds of Apple Pay Transit. Here is a brief explanation of what they mean.

iOS 13 Apple Pay Transit, entries such as Melbourne and Los Angeles will arrive later in the iOS 13 life cycle
  • Where you can use Apple Pay for transit with Express Transit Mode
    ‘A List’ transit that supports both native transit cards (faster than EMV except for China) and EMV style bank cards (slower) for Express Transit.
  • Where you can use Apple Pay for transit without Express Transit mode
    ‘B List’ EMV style bank card transit that requires Face ID, Touch ID or passcode at the transit gate. One benefit of this mode over regular plastic bank cards is that all Apple Pay loaded cards (China again is the one exception, UnionPay all the way) are certified by Apple for the listed transit agencies. This means Apple Pay cards will always work, while plastic versions of the same card sometimes do not.

Tokyo Cashless 2020: Dear JR East, we need a new Suica Charge App

1️⃣ >Dear JR East, we need a new Suica Charge App
2️⃣ Consumption tax relief with the CASHLESS rebate program
3️⃣ Are Apple Maps and Siri really Apple Pay level ready for the Tokyo Olympics?
4️⃣ Blame the Japan Cashless Payments mess on VISA and EMVCo, not FeliCa

Tokyo Cashless 2020 is a series covering all things cashless as Japan gears up for the big event. If there is a topic that you’d like covered tweet me @Kanjo

Now that iOS 13 with supercharged Core NFC is almost here, it’s time for JR East to junk the old Suica Charge app for Sony PaSoRi FeliCa reader combo on life support until the plug is pulled in September 2020, and create a new Core NFC supercharged app for iOS 13. Since any iPhone 7 and later has the ability to Read/Write FeliCa cards build a whole new app around iPhone as the NFC read/write device. Here are some other helpful suggestions:

  • Make the app multilingual, or at least support English in addition to Japanese
  • Cooperate with the other major transit card companies to support all compatible Japanese transit IC cards for recharging, not just Suica
  • Support international issue credit/debit card registration in the app so that anybody from anywhere can recharge plastic transit IC cards with their bank card
  • Support In-App Apple Pay for recharging
  • Support the app on Non-Osaifu Keitai Android phones that can read/write NFC-F, there are lots of them out there coming to Tokyo in 2020, support Google Pay for In-App recharging too

There is an ocean of plastic Japanese transit IC cards out there. There are lots of Android users, and even iPhone users, who cannot use Apple Pay Suica or Google Pay Suica. A handy Suica recharge app that lets inbound travelers recharge plastic transit cards on the go with just a smartphone is screaming to be born, it would be an essential tool in alleviating station recharge kiosk lines during the Tokyo Olympics. JR East, please make it happen.

Update: I forgot that JR East already announced the end of “Suica Internet” services in September 2020. Suica Internet is a set of internet based services for online shopping and recharging Suica cards with the Sony PaSori reader and a Windows PC. JR East is pruning legacy services as they prepare for the next generation Super Suica rollout in April 2021.

Dear Apple: We need a Global NFC iPad

Now that iOS 13 is almost here, it’s time to sit down and think about the enhanced Core NFC Read/Write functionality and what it means for iOS/iPadOS. Core NFC “requires a device that supports Near Field Communication.” Theoretically this means iPhone and Apple Watch, but the reality is that only iPhone iOS supports Core NFC, NFC Tag Read/Write and new services like NFC Tag Apple Pay that use Background NFC Tag reading.

Until now nobody has discussed the need for a NFC capable iPad. Without the enhanced Core NFC functions of iOS 13 which limited NFC to Apple Pay Wallet card, there wasn’t a reason. After all who would want to use iPad for Apple Pay Suica transit in Tokyo, you’d look as silly as watermelon man (watermelon in JP = suika…get it?).

But iOS 13 Core NFC changes all this: sure you still don’t want to use an NFC iPad at the checkout line, but businesses would love an NFC iPad loaded with all kinds of enhanced Core NFC apps to do all kind of work as all-in-one mobile POS systems, factory inventory NFC tag read/write systems, and much more. Imagine how an NFC iPad bundled with Recuit’s AirPAY would appeal to Tokyo area businesses as they gear up for the 2020 Olympics. The possibilities are interesting and not insignificant.

What is the optimum global NFC iPad hardware configuration? Background NFC tag reading ability is an absolute must which means A12 Bionic is the minimum support configuration. Outside of that I would say: iPad Air and iPad mini, not iPad Pro, a NFC + cellular model, and a WiFi only model. The NFC iPad needs to be as inexpensive as possible with A12 Bionic and Touch ID. I think it could do well.