VISA Japan announced VISA Touch support on Kyoto Tango Railway, most media outlets simply ran edited versions of the VISA Japan press release. The infrastructure uses a slightly modified stera store reader platform, which VISA has a hand in. Willer Inc. is hailing this as the first ‘VISA Touch’ solution on Japanese train systems but they ignored the fact that stera VISA Touch was already announced for Ibaraki Transit highway bus service back in July.
Japanese journalist comments on Twitter were fun to read with the ‘let’s just dump FeliCa and Suica already and go all in with EMV’ supporters club checking in as usual. Nobi Hayashi asked good questions regarding real user convenience. Junya Suzuki said he plans a trip to investigate the new service, his next ‘Pay Attention’ column promises to be a good read.
Just what kind of end user are these VISA Touch transit installations targeting anyway? Let’s do a quick profile:
- VISA Touch JP plastic cards are being issued in Japan but they are new and few and dwarfed by the number of Transit IC cards (Suica, PASMO, ICOCA, etc.) that can be bought by anybody at any station kiosk machine with cash. Apple Pay Japan users cannot use it because VISA JP refuses to support Apple Pay JP FeliCa/EMV dual mode NFC switching. This service is not targeted for domestic transit users.
- Both of these VISA Touch installation transit areas market heavily to inbound tourists, neither of them support Transit IC cards.
- VISA Touch is not compatible with PBOC Union Pay cards technology, the installations also support QR Code AliPay and WeChat Pay for inbound Chinese tourists
The short summary is these installations are for inbound tourists with VISA Touch contactless credit cards, a transit boutique for marketing purposes more than real use.
Japanese media is quick to dismiss FeliCa as a technical failure in the face of EMV but I think that is the wrong analysis. Looking back it’s easy to see a huge mistake was that the big push for Mobile FeliCa credit cards on smartphones was not matched with an equally big push for plastic credit cards with FeliCa support.
And the big EMV push instead of FeliCa has not worked out so great either. Instead of making a technology agnostic unified push for NFC contactless, EMV bank card interests pushed their own agenda. All that did was provide a big opening for domestic QR Code payment players like Line Pay and Pay Pay which they took and continue to take.
What I find fascinating is that the mainstream Japanese IT media has not written much about the Super Suica 2 in 1 card strategy or rollout plans. Low cost transit IC card infrastructure sharing that delivers consistent and seamless transit service on mobile and legacy plastic while offering local area branding and services is a compelling vision that I don’t see bank card companies matching.
The challenge for JR group companies (JR West, JR Central, JR Kyushu, etc.) is working with JR East to offer Super Suica 2 in 1 card solutions in their own regions, because if they do not we’ll see more VISA Touch transit boutiques.