Suit Train Eki-Net

YouTuber Suit Train explains the ticketless Eki-Net way of transit ahead of the June 27 system renewal and great big 70% reduction of station ticket agents and service windows by 2025. There are some interesting bits: credit card only jR East ticket kiosks (1:20 mark), and Eki-Net Shinkansen eTicket purchase and gate entry (3:40~5:15). The whole point of his video is that paper tickets are going away. Nevertheless when a platform escalator stoppage prevents him from making a reserved train…paper tickets come to the rescue.

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 mess

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.

Japan mobile payment survey results

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.
  • QR Code payment apps (PayPay, dBarai, LinePay, etc.) are not as popular as you might think and are probably feeling the pain of recent bank account linking security problems, and the recent revelations of user transaction records being stored outside of Japan.

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:

  1. 21% JRE POINT
  2. 28% Rakuten POINT
  3. 19% dPOINT
  4. 14% au•PONTA POINT
  5. 10% T-POINT
  6. 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.

Suica App 3D Secure authorization for all non-Apple Pay in-app purchases

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.

With the VISA JP Apple Pay deal however, we are seeing a bunch of credit card backend changes, like merchant code changes that eliminate Suica recharge 3x travel points for Chase Sapphire Reserve VISA holders. JR East is changing how Suica App works, 3D Secure authorization for all non-Apple Pay in-app purchases is part of that. For users this means doing Suica recharge and commute plan renewal in Wallet instead of Suica App to avoid 3D Secure login hassles. Wallet is the hands down easiest way to recharge Suica and renew commute plans.

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.

There are some VISA JP cards that still don’t support Apple Pay in-app, MUFG holders still have to recharge the old Suica App way. Whatever the reason, the across the board change will be likely be very unpopular with iOS Suica App and Android Mobile Suica users.

Any purchase in Suica App can be made with Apple Pay instead of the app registered card that bypasses 3D Secure, Suica App registered CC on the left, Apple Pay on the right

UWB Touchless Express Transit and Apple Pay for iOS 15?

A recent sudden surge of hits from Hong Kong accessing my December 2019 UWB Touchless Mobile FeliCa post seemed odd. I dug around and it appears that Hong Kong MTR, like JR East, is making noises about incorporating UWB technology in next generation transit gates.

iOS 14.5 added a new PassKit call for Bluetooth and the U1 chip integration since iPhone 11 and Apple Watch 6, coupled with global FeliCa support certainly puts Apple ahead of the game. I have no idea what WWDC21 will deliver but more UWB integration is a given.

Apple only mentioned UWB Touchless at WWDC20 in connection with digital car key without showing anything because the Car Connectivity Consortium Digital Key 3.0 spec was a work in progress. Now that the spec is in-place with BMW said to deliver car models incorporating UWB Touchless this year, will Apple show it in action? I think it’s highly likely, but since Car Key is a ‘Wallet Card’, and Wallet app Express Cards come is 3 types: Transit, Student ID, and Car Key, the more interesting question is…will Apple also show Touchless Transit and Student ID Express Cards? And what about Apple Pay?

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.