The entire video is 45 minutes long but everything after the 17:46 mark later is him explaining the details on a white board in his patented spontaneous ‘one take, no overdub’ video style. And even then he still gets 100,000 views in less than 12 hours. Not even out of college he already has a career…and a gold VIEW card.
My JR-EAST, like a lot of JR East software services, is a nice idea, poorly implemented. It’s an attempt to unify scattered account login IDs for various JR East web services that evolved independently but need to work together as one in the mobile app era: Mobile Suica, JRE POINT, Eki-Net, View-Net.
The mess was brought home to me recently when I helped a co-worker register his Apple Pay Suica card for Eki-Net Shinkansen eTicket service because the eTicket discounts are attractive. He created a Eki-Net account, which you can only do via the webpage, not the app.
Him: Where do I get the Suica ID? You need Suica App for that. One download later it took him 2 tries to register the Suica ID because Suica App copies the entire ID string but Eki-Net cuts off the last 2 numbers as the first 2 sting letters have to be manually selected from a pull down menu. Dumb.
Him: I want to use Green Seat upgrades. You have to login to Suica App to do that. Can I use the Eki-Net ID to login? No, you have to sign up with Mobile Suica. Can I buy Tokkaido Shinkansen eTickets too? No, you have to sign up with the JR Central EX service.
And so it went and that’s the mess of JR East software services: each one has a separate registration process and login. On the MY JR-EAST webpage users can register a single ID and PW then login and link other services. One MY JR-EAST ID/PW for Mobile Suica, Eki-Net, JRE POINT, View-Net, except it doesn’t work. Oh wait, it does work for webpage login but not apps. Suica App supports MY JR-East login but JRE POINT and Eki-Net apps do not. View-Net doesn’t even have a mobile app. If JR East wants customers to use their services, why do they make it so hard? This doesn’t jive with the company’s stated intent of reducing in-station service staff and encourage customers to use online resources instead.
It should work like this: the JR Group companies accept online reservation accounts from each other, b better yet they mutually host each other’s online reservation system. I shouldn’t need a separate ID account and registered credit card just because I want to buy a Tokaido Shinkansen eTicket. Let me do that in Eki-Net. The same goes for EX (JR Central) and e5489 (JR West) which are already compatible with each other. Ditto JR Hokkaido and JR Kyushu. Use the sign in with Apple ID model to make all these services work seamlessly with each other and give your customers a break. They might actually start liking JR software services, a first.
All JR Group online services were created back in the era of ISDN internet and iMode handsets. If the JR Group companies want travelers to return after the COVID vaccination program winds down, they have to get their mobile act together and build for the future.
I gave the Twitter survey function a workout and asked 2 questions:
Which Japanese mobile payment do you use most?
Which Japanese reward points do you use most?
The results are not surprising but come with many caveats: the survey sampling was puny, in English and pretty much limited to a small group of Twitter followers, which means they are pretty much already invested in Mobile Suica. Also it is important to remember that mobile payment use profiles in Japan are highly regional, what’s convenient in Tokyo isn’t necessarily convenient in other areas. That said, there are some interesting and fun takeaways.
Japanese mobile payment takeaways and feedback
The 55% Suica/PASMO figure expresses the power of Apple Pay Express Transit (and similar for Osaifu Keitai) for store purchases in the COVID induced face mask era without the hassle of Face ID. It’s important to remember that the ballyhooed Unlock with Apple Watch Face ID feature introduced with iOS 14.5 is useless for Apple Pay authorization. Remember too that Mobile Suica has good support on wearables: Apple Watch, Garmin, fitbit, etc., the widest mobile payment platform in Japan.
Despite the heavy marketing VISA Touch from VISA Japan, the majority of users have been using Apple Pay and Osaifu Keitai for iD and QUICPay, etc. I suspect EMV ‘Touch’ (Visa, MC, AMEX, JCB) probably appeals more to plastic card users as VISA is pushing EMV only plastic cards vs. digital wallet dual mode Apple Pay.
Changes quite a lot. Recently using EMV touch a lot because of SMCC 15% back campaign and Amex 20% at FamilyMart. Otherwise probably a little bit of everything just to get maximum reward. (Tokyo)
I don’t ride trains so I have no real use for Suica. Using it to pay in shops is too much of a PITA since you have to constantly recharge it. (Kagoshima, note that Suica Auto-charge only works in JR East transit region)
I do iD for the point rewards (none in JP CC recharge of Suica) otherwise Express Transit is perfect. (Tokyo)
Mostly Suica (via Garmin Pay), but I’ve been using au Pay (QR or barcode) a lot more recently. (Hiroshima)
Japanese reward point takeaway Results are complicated. Twitter surveys are limited to 4 choices, I lumped the Japanese carrier reward point systems for docomo, au and SoftBank (dPoint, au•PONTA, T-POINT) into one category, the top choice at 43%. However if we break down the carrier number by carrier marketshare ratio we get the following:
21% JRE POINT
28% Rakuten POINT
14% au•PONTA POINT
8% V POINT
The key takeaway for reward points is the power of the Rakuten ‘Economic Zone’, i.e. where all the Rakuten pieces including shopping, banking/credit card/payments, transit (Rakuten Suica), mobile, stock trading, travel, etc., are glued together by Rakuten POINT and feed off each other. The Rakuten Economic Zone is the model that others will have to successfully emulate if they are going to be serious long term competitors. NTT docomo announced a tie-up with MUFG this month, the digital banking wars are just getting started.
More fallout from the VISA JP Apple Pay agreement: JR East announced they will implement 3D Secure in iOS Suica App, requiring authorization for all non-Apple Pay in-app purchases.
Suica App is convenient because it works hand in glove with Apple Pay and app registered Japanese issue credit cards, giving users the widest possible card coverage. Since 2016, Suica App was the only work around solution for using VISA JP cards for Apple Pay Suica recharge.
We’ll see a Suica App v3.0.4 update when 3D Secure is in place, likely when the new Eki-Net launches June 26. PASMO App already uses 3D Secure for registering cards but not for in-app purchases.
With direct Wallet addition of Suica cards starting with iOS 13 coupled with last year’s migration of Shinkansen eTicket functionality to Eki-Net, and the addition of VISA JP Apple Pay in-app support, Suica App is less essential than ever. The only reason for using it now is new commute plan purchases, Auto-Charge setup (which remains the 3D Secure free way to recharge) and receiving Suica Pocket recharge rewards.
People think Touchless is a completely new thing for ‘keep smartphone in pocket’ transactions, and they worry about security. You can’t blame them because marketers are selling the in-pocket payment experience. However, Touchless is simply long distance NFC without NFC. All UWB Touchless does is describe the frequency to use Bluetooth instead of NFC. The background stuff, secure element and so on, is exactly the same. This means user interaction is the same. For walking through transit gates and security doors, or unlocking your car, the convenience of Touchless is easy to understand: no more NFC tapping, just keep moving.
What about Express Card payments? The current Apple Pay Suica payment checkout experience: the user taps Suica on a touchscreen, or tells the clerk “Suica” then holds the device to the reader. The user has to give consent before the transaction is activated by checkout staff or the self checkout reader. For Apple Pay EMV transactions users have the extra step of confirming a transaction by Face ID/Touch ID to complete it.
Realistically however, in what situations does Touchless make store checkout more convenient and faster? Drive thru certainly, supermarkets…maybe, but most stores will probably not want to invest in Touchless without a good reason when the NFC readers they already have installed get the job done. There is one more interesting role that Apple has planned for UWB however, one that promises to improve the entire Apple Pay and Wallet experience: communicating with the reader before transaction to select the right Wallet card for the job, at a distance, for a truly smart Wallet app. With national ID cards, passports and more coming to Wallet at some point, UWB could be the Wallet reboot we really need.
And then there is EMVCo. The problems with UWB Touchless for EMVCo are that: (1) Touchless only works with devices with batteries, á la AirTag, and doesn’t work with the current plastic card model, (2) UWB + Bluetooth level the digital playing field with FeliCa and MIFARE, no more ‘real’ vs ‘who cares’ NFC hardware flavors to split hairs over. The plastic card NFC limitation is probably a bitter pill for everybody but especially for EMVCo members and issuers as plastic card issue is big business, and many customers are more comfortable with plastic cards. For those reasons I think EMVCo will be the last to support UWB Touchless, if they do at all. On the plus side Touchless does give digital wallet platforms an edge to create smart aware wallets, digital does NFC and Touchless, plastic only does NFC. We’ll find out about Apple’s UWB Touchless roadmap at WWDC21.