The truth is in the tap

The Nankai Visa Touch test launch launched endless Twitter discussions about slow EMV contactless tap speeds and performance issues compared with Suica and other Transit IC cards. EMV contactless transit in Japan is novel so this is expected. But suddenly people are also referencing Junya Suzuki’s 2016 pre-Apple Pay Suica launch era ‘Is Suica Over-spec?’ piece. This has long been a favorite theme in Japanese tech media: Suica is more than we need, EMV contactless is ‘good enough’ so let’s do everything with one card, life is more convenient that way. Be careful what you wish for.

The 2016 launch of Apple Pay Suica was a great success of course, that changed the Japanese payments market and opened the door for the proliferation of QR payment services you see everywhere now. The one card must do it all concept is old hat but Tokyo Olympics sponsors Visa Japan and SMBC are trying very hard to convince Japan that Visa Touch cards are the transit future.

My position was and remains that one size never fits all. It doesn’t have to be a EMV or nothing choice portrayed in tech media, nor should it. Different technologies complement each other for a better user experience. Apple Pay Suica/Mobile Suica combines the convenience of EMV cards on the recharge backend with the speed and reliability of FeliCa based Suica cards on the NFC front-end, for a best of breed closed loop transit user experience. One interesting thing I pointed out in my retweet of Suzuki san’s Nakai open loop launch piece was that QR Nankai Digital Ticket gate performance in the his video is faster than Visa Touch because it’s closed loop.

The comment touched off an odd but interesting set of tweets from Suzuki san and his followers about gate design, reader performance and walk flow that boils down to this: if the reader transaction speed is slow, increase the distance between the reader and gate flap to keep people walking instead of stopping.

His follow up piece deconstructs ‘FeliCa is faster’ as half misunderstanding transit gate antenna design and RF communication distance because EMVCo reader certification dictates a smaller RF distance, the result of using the EMV contactless supermarket checkout spec on transit gates it was never intended for. All I can say is the truth is in the tap. In theory all NFC flavors and protocols offer the same performance but in real transit use they don’t. Better to get next generation Ultra Wideband Touchless gates in service and dispense with the ‘redesign transit gates for slow EMV contactless/QR transit’ debate nonsense. Design things for the future not the past.

The current Transit IC local stored fare model does have weak points as suggested in FeliCa Dude’s tweet: discount ticketing, rebates and refunds. If you purchase a Mobile Suica commuter pass, you can easily get a refund back to the bank payment card used to purchase the commuter pass. This is because Suica extras like commuter passes and Green Seat upgrades are supplemental attached services that don’t use the SF purse.

Rebates and refunds via the SF (stored fare) purse are a bottleneck. Suica App has a mechanism for dealing with some of this called ‘Suica Pocket’ for JRE POINT exchanges and refunds back to the SF purse. Mobile Suica card refunds are another matter and can only be refunded to a Japanese bank account. Octopus Cards Ltd. (OCL) has a special Octopus App for Tourists that refunds a card balance back to original credit card used for the initial digital card issue. OCL also charges tourist users an arm and a leg for Octopus Wallet recharge and refunding. It would be nice if JR East could do the same…without the outrageous OCL surcharges.

For inbound discount ticketing JR East has adopted a similar approach they use for Eki-Net Shinkansen eTickets: discount plans attached to plastic Suica cards. This is the whole purpose of the Welcome Suica + reference paper proving validity for inbound discount plan purchases at station kiosks. It would be great if JR East figures out a way to do the same thing on Mobile Suica.

Domestic discount ticketing and passes are still the glorious, mostly paper ticket mess that is Eki-Net and similar services. Eki-Net itself is still in a slow motion transition towards a Transit IC/Mobile Suica orbit with some things transitioning to QR paper ticketing that replaces expensive mag-strip paper. Eki-Net App is still limited to Shinkansen eTickets and ticketless express train seat purchases. The Eki-Net web site is where you access all the bells and whistles although the experience feels like navigating the Transit IC interoperability chart. Discounts are starting to change somewhat with Suica 2 in 1, totra is the first Suica for disabled users but exclusive to the totra fare region. Hopefully Extended Overlap will see wider use not only for Suica but across all Transit IC cards for more special, and interoperable, discount services.

Is Suica ‘all-in-one’ possible?

Now that Suica 2 in 1 Region Affiliate transit cards are out, it’s time to examine the question that Yanik Magnan posed in his limitless possibility podcast: is Suica all-in-one possible? He defines it as follows: “All-in-one in my case would mean all Transit IC and local area transit members sharing the same physical card as a common container for their data, I’m assuming (maybe incorrectly?) that Suica + PASMO on the same card would be possible through whatever totra is doing.”

In my initial Super Suica coverage I outlined all-in-one possibilities beyond the Suica 2 in 1 Region card program and called it ‘Super Suica’ to capture that idea. Unfortunately, and as Yanik points out, I forgot an important aspect: Suica and sister Transit IC cards all use the same FeliCa technology but have their own data formats. That was an oversight. Nevertheless I think we agree, so I’m retiring Super Suica in favor of Yanik’s Suica ‘all-in-one’ moniker. Here is a grab bag of various pieces that hopefully add up to an quick overview, with Suica all-in-one as a platform of technologies that others can build off of, instead of a specific transit card.

FeliCa Enhancements
Since November 2020 we’ve seen a number of FeliCa enhancements: (1) FeliCa Standard SD2, (2) Mobile FeliCa Multiple Secure Element Domains that support non-FeliCa protocols and, (3) Mobile FeliCa Ultra Wideband Touchless. The most important of these right now is SD2 because it’s a real shipping product with Extended Overlap Service and Value-Limited Purse Service. TagInfo scans of the newly released totra 2 in 1 Suica Region Affiliate transit card reveal Extended Overlap in action. The card itself shows 2 issue numbers on the back, one from JR East who own the SF (stored fare) purse and one for the region operator who own the overall card. That JR East owns the Suica 2 in 1 card SF and float is…interesting and offers a clue as to what’s going on behind the scenes.

FeliCa Standard SD2 powered totra Suica has 2 card numbers

Float Gloat
Who owns the SF purse float, how it works on the reader side and as a business model are the big issues. Here’s an example: I suspect SD2 Extended Overlap might also be used in the new Suica-TOICA-ICOCA cross region commuter passes as those cannot be issued on current plastic and require an upgrade trip to the nearest JR station. We won’t know for sure until we get a TagInfo scan of the new physical card but let’s pretend for a bit.

Say a TOICA user purchases a cross region commuter pass from Numazu (TOICA) to Odawara (Suica) for regular non-Shinkansen transit. In this case the cross region solution is easy and acceptable to all JR companies because each transit card issuer owns the SF purse, in this case JR Central. The same applies to JR East when issuing the same commute pass route for Suica. The same scenario would likely be acceptable to all Transit IC companies, sharing a common physical card as a common container for their data, but only if the SF purse ownership was clearly defined as it is in totra Suica so it works on the reader side: this is Suica SF, this is a ICOCA SF, etc., otherwise the reader doesn’t know which one to use.

In other words, let’s 2 in 1 and all-in-one for the shared resources like points, commuter passes and special discount fares for elderly and disabled users, but the SF purse is not shared for 2 in 1 or anything else. Common data format, yes. Common shared SF purse, no. At the end of the day you can’t have a Suica and a PASMO on the same card as the reader won’t know which one to use. We’ll see if Extended Overlap and Value-Limited Purse solves this wanna have cake and eat it too Transit IC dilemma. Sony is now shipping FeliCa Standard SD2 antenna module chips for the reader side of the equation so readers will be getting smarter and evolve too. That’s how I see it for Suica all-in-one, Transit IC and mobile, a gradual evolution.

Mobile hardware barriers
On the mobile front we have a smartphone hardware barrier: the Mobile PASMO Osaifu Keitai Type 1, Type 2, Type 3, mess landed on Mobile Suica with addition of multiple Mobile Suica cards on March 21. Only Osaifu Keitai Type 1 devices can handle multiple Suica and PASMO cards.

This has implications for Mobile FeliCa features such as the Japanese Government My Number Digital Card and UWB Touchless digital car keys. Mobile FeliCa 4.0 and later on Pixel devices indicate the ability to upgrade FeliCa JAVA Card applets and even Mobile FeliCa itself. Whether Android device makers will actually use this OTA ability is a mystery. To date the standard industry practice has been if you want new features, you buy a new device.

And then there is Apple. iPhone 7 JP models that support Suica do not support PASMO, UWB is only available on iPhone 11 and later, and so on. There is no guarantee that Apple will update, say iPhone 11 models, for UWB Touchless, Mobile FeliCa My Number Digital cards or even Suica 2 in 1, if and when the format comes to Mobile Suica.

We’ll see what FeliCa Dude has to say about the all-in-one subject, hopefully in a future Reddit post. It may take a while but worth the wait.

UPDATE
I’m sticking with Super Suica. Yanik’s All-in-one take is a great name focused on the 2 in 1 card architecture that fits all of Transit IC on a single card. My Super Suica take is a wider set of developing platform initiatives. Yanik’s feedback was valuable in forcing me to review my posts and define Super Suica as a platform, I thank him for it.

A great reality check

I was pleasantly surprised to find some hits coming from a website called limitless possibility, followed the link and discovered a great podcast by Luc-Olivier Dumais-Blais and Yanik Magnan on Japanese transit IC cards, Suica 2 in 1, the new features of FeliCa Standard SD2, Ultra Wideband Touchless and more…things I’ve been writing about for a while that never get any traffic.

Yanik does a much better job of summarizing the transit technology landscape than my messy collection of posts. I wholeheartedly agree that UWB Touchless is the perfect opportunity for Japanese Transit IC members to put aside political differences and merge, or at least ‘harmonize’ their data formats for a real all in one Super Suica. We shall see. There are things coming down the pike such as multi-secure element domain/multi-protocol Mobile FeliCa that might have transit implications. And I thank Yanik for his constructive criticism of my ‘Super Suica’ coverage. It’s very helpful and rare that anybody takes the time these days.

Extra bonus: their discussion of the Japan QR Code payment mess and a sendup of PayPay ‘gamification’ campaigns using the Canadian Tim Hortons roll up the rim thing is hilarious and spot on.

The Open Loop transit privacy question

In 2013 JR East faced a crisis over selling Suica ridership pattern data analysis to Hitachi. The Suica data was stripped of personal information and was used to analyze popular transit routes and create general user profiles based on age group, gender and so on. Media outcry resulted in JR East drafting an opt out data policy followed by Japanese Government laws and regulations covering personal data privacy.

That was then, this is now. Line, the popular messaging service plus Line Pay payment platform, came under attack this week for storing user and transaction record data outside of Japan, in South Korea and China. This is not a surprise since Line started in South Korea and storing data on cloud servers there was always an open secret. Why the brouhaha now? The recent complicated Z Holdings acquisition maneuvers of Line are a factor. With PayPay and Line Pay QR payment empires now in the same house some kind of streamlining is bound to happen. The data scandal could be a convenient excuse to start it.

The constant drip of privacy concerns regarding social networks and QR payment systems like Line Pay, and where user transaction data is stored, makes the old JR East crisis look small and silly. Everything is more connected now in unexpected ways than even just 8 years ago.

It doesn’t matter how secure transaction protocols are when user transaction record data is stored on leaky servers or sold to outsiders for profit. I wrote about this earlier, the so called popularity of QR Code payment services in Japan is really about big data. In that vein we have a timely blog post on Open Loop ltransit rider privacy from Transit Center.

For a professional advocacy organization dedicated ‘to improve public transit,’ the Transit Center privacy publication is surprisingly amateurish. It raises valid concerns but reads like open loop advertising from credit card companies (Transit Center soft sponsors?), where open loop is the golden cure-all future, and the only future at that, of every transit ill with closed loop invariably portrayed as a dead era of tokens, punchcards and mag strip swipe cards. They also make MTA seem like the only transit system in America that matters because idiosyncratic MTA problems apply everywhere. Right? Wrong. Let’s take a look at their privacy blog post…<<with comments>>.

Transit agencies around the country are adopting a new generation of fare payment systems. Agencies including New York’s MTA, Boston’s MBTA, and Houston METRO are in the process of switching to what’s known as “open-loop” systems that enable riders to tap into the system using digital wallets on their phones or with their credit cards…

<<more banks handling transit fare concessions sounds like a good idea for privacy, wait until the TC folks figure out that ‘closed loop’ bank card accounts for digital wallet OMNY is the next step in the game>>

These technologies come with clear benefits for riders, but they also carry the risk of exposing more personal data…

<<here it comes>>

The switch to these new fare payment technologies can accelerate access to riders’ trip data by other government agencies. In New York, for instance, individuals’ MTA trip data can be retrieved much faster with the new OMNY system than with the older MetroCard system…

<<retrieve trip data quickly on a fare system where users don’t tap out…what? privacy concerns are not just government agencies btw with multiple 3rd party companies handling and processing transit fare data…which brings us to>>

The increased involvement of third parties in fare payment underscores the need for better data collection and management policies within transit agencies.

<<better as in more big data details?>>

How to Implement the Next Generation of Fare Payment Without Shredding Riders’ Privacy

Anybody experienced in dealing with bank and card company customer service could see this coming. Bank and transit operating cultures are different and they don’t mix well with outside companies running the transit gate fare concession. If you think transit privacy is a concern now, wait until face recognition transit gates become the next transit future thing.

Let’s make this simple. Open Loop (EMV and QR) and bank card EMV Closed Loop means that banks and outside payment platforms run their services at the fare gates They have transit user data, as does the transit company, so does the fare system management subcontractor like Cubic. The more places data is stored the more it’s gonna leak. This is exactly what is playing out in Japan right now because Line Pay Japan user transaction data is stored in South Korea which does not, putting it mildly, have a good secure data reputation.

That doesn’t mean that closed loop is automatically more secure, but keeping data in-house with its own closed loop transaction card in the country of origin, as JR East does for Mobile Suica, does mean that outside company access is tightly controlled. At the very least there is only one company in the country of origin to take the blame when something leaks, and only one place to plug it.

The Suica 2 in 1 Region Affiliate Transit Card

The Suica 2 in 1 Region Affiliate transit card ‘totra’ launches today, the first card based on the September 2018 joint JR East/Sony Imaging Products & Solutions/JR East Mechatronics announcement. The joint roles are defined as: (1) JR East for promotion, coordinating and supporting the implementation process with local transit companies, (2) Sony for developing new FeliCa additions necessary for 2 in 1 and supporting ICT (Information Communication Technology) transit card developments, (3) JREM for issue, testing and qualification of 2 in 1 cards.

Based on information released by the totra partners, the end product closely aligns with the 2018 announcement:

  • 2 in 1 Commuter Passes: a JR East Suica commuter pass and a region affiliate commuter pass
  • 2 in 1 Points: JRE POINT and region affiliate transit points
  • Other region affiliate services: a totra card for disabled users with special discount fares/subsidies, welfare points (starting April 2021) for elder and disabled transit users

…all in one Suica card. This is more important that it seems and solves some long standing problems. Let’s look at the situation with the wonderfully useful Transit IC card chart created by Wiki user ButuCC.

Transit IC interoperability chart

The core square contains the 10 mutual use ‘Transit IC’ cards with many IC arrows pointing to region transit cards outside of the square. This means the core Transit IC cards work on those local transit systems but only one way. There are no IC arrows pointing in towards the core region because there are no regional transit cards mutually compatible with all core Transit IC cards…until now: totra Suica is the first region transit card that works nationwide.

2 in 1 Suica combines the ‘outside the square’ region card with the core Suica card. totra is a Suica card, mutually compatible with all Transit IC, but also a local transit card with new services built on Suica infrastructure. One example: the first transit IC card for disabled users that automatically gives them the local region discount fare and subsidy, but only for the totra fare region, not outside it. Disabled fares are highly regional with local prefecture and city governments providing transit services and fare discounts. It’s a trade off but it does provide a transit IC card option for disabled users instead of paper tickets with a ID card for the first time.

Super Suica or something else?
So is this Super Suica or not? The totra Suica logo explains some of what is going on inside the card. There is a ‘+’ mark which indicates ‘Suica plus affiliate’ that combines Suica with an attached financial service like credit card recharge. This is the Suica plus mark you see on all Mobile Suica cards including Mizuho Suica (iOS) and Rakuten Suica (Android).

There is also a ‘••’ mark which indicates FeliCa Pocket services, FeliCa applets on a physical card or Osaifu Keitai card that provide different services in a single card (transit, points, ID, etc.). You can see the ‘••’ Suica logo on Rinkai Suica and Monorail Suica and the both marks on the Suica/credit card combos like VIEW. The Rinkai Suica design also looks like totra which uses a similar blue left instead of right trapezoid.

FeliCa Dude points out in an interesting Twitter thread with treastrain that 2 in 1 is a new kind of Suica plus affiliate card issued outside of JR East with no financial service attached to it. As treastrain notes, it’s weird that Suica plus is being used for a rechargeable ¥500 deposit Suica with no attached credit card, but we are in uncharted territory with new features to come.

Suica 2 in 1 is the first Suica based on the new FeliCa Standard SD2 card. We can’t see exactly how FeliCa SD2 is used to deliver 2 in 1 functionality but FeliCa Dude gives us an excellent rundown of 2 important additions: Extended Overlap Service (points and passes) and Value Limited Purse Service (purse). These are tools for JR East and the other Transit IC operators to integrate services in new ways, implement their own version of 2 in 1, raise the balance limit and more. The new FeliCa SD2 features have big implications. Like all things the Super part of Super Suica depends on what JR East and the other CJRC members (Congress of Japanese Railway Cybernetics) mutually accomplish using these new FeliCa and Suica parts. The more region transit cards that migrate and merge inside the Transit IC square while addressing regional needs, the better.

totra Suica 2 in 1 has 2 issue numbers for JR East and the region transit card operator. JR East owns the SF (stored fare) purse, which means they own the float.
Suica 2 in 1 extensively uses the new FeliCa Standard SD2 Extended Overlap Service

What about mobile?
It’s important to remember that 2 in 1 Suica extends Transit IC coverage, including Mobile Suica and Mobile PASMO, into new transit areas. 2 in 1 Suica is limited to plastic issue at this point so those users do not have a mobile option. 2 in 1 Mobile Suica service depends on resolving 4 things:

  • Will Mobile FeliCa be upgraded with the new FeliCa SD2 functions?
  • Will Mobile FeliCa be updated on Osaifu Keitai and Apple devices?
  • Will JR East manage Mobile Suica card issue for outside transit companies
  • Is there an (local 2 in 1 Suica transit card) app for that?

Mobile Suica already hosts Suica ‘+’ cards (Mizuho Suica and Rakuten Suica) and FeliCa Pocket services are designed for physical cards and mobile. 2 in 1 is a new card so the first hurdle is upgrading Mobile FeliCa to support SD2 card features and pushing that update to devices.

FeliCa Dude posted some tweets that suggest Mobile FeliCa 4.x on Android devices can be updated but industry practice on the Android side so far has been doing a pre-install and leaving it at that. If users want newer Mobile FeliCa features, get a new device. Apple can certainly update Mobile FeliCa on their custom embedded secure element, but will they?If nothing else I think the recent addition of Garmin Pay Suica and Fitbit Pay Suica indicates that FeliCa Networks is getting better at pushing new services from Mobile FeliCa Cloud.

The app question is another hurdle and a bit complicated. The whole 2 in 1 concept means 2 different managed services are bundled in a single card. Who manages what? While it makes sense to add 2 in 1 Suica non-JR East local commuter routes for purchase and renewal in Mobile Suica and Suica App, local area transit point account management needs to be handled in a separate app. Does each 2 in 1 Suica locale handle that? That approach makes sense but JR East could certainly help with coordinating support and leveraging common resources and infrastructure to eliminate redundancy.

Summary
2021 is only the start line for 2 in 1 Suica with totra and Iwate Green Card. 2022 will see 6 more 2 in1 Suica cards, probably more, it will be the real coming out year. By then Mobile ICOCA will be on the horizon, I think we’ll know if 2 in 1 is the start of Super Suica…or not. If the other Transit IC partners simply copy what JR East is doing with 2 in 1 region cards, that will be super enough for the people who live, work and go to school in those regions.