Suica benefits: Though they have different branding local 2 in 1 cards are Suica cards with all the Suica infrastructure benefits including Mobile Suica, Shinkansen eTickets, Transit IC compatibility, eMoney, etc.
Contactless: eliminating paper tickets and hard cash in areas without Transit IC cards in the COVID era is a good thing though credit card companies are marketing the hell out of it too. More on this in a later post.
Super Suica offers the benefits of Suica infrastructure to local transit agencies within the JR East area who don’t have the resources to launch or maintain their own Transit IC card system. Plugging those orphaned areas into the wider transit network with the same infrastructure is the sensible thing to do, I wish JR East had done this years ago. We should see more announcements in the coming months and Japanese press coverage as the first services prepare to launch in March 2021.
Another day, another Suica related announcement. JR East ticketless Touch and Go Shinkansen service for Suica and other compatible Transit IC cards will be expanding in March 2021. It will basically cover all Shinkansen lines directly managed by JR East. Previously it only covered the Kanto region. Touch and Go differs from Eki-Net Shinkansen eTickets in that Touch and Go uses the Suica balance for Shinkansen fare, eTickets do not.
The service is very simple: register Suica, PASMO, etc. at any JR East station pink recharge kiosk for Touch and Go. Then waltz through the Shinkansen gate and get on a non-reserved Shinkansen seat. A typical use case looks like the diagram below.
Of course the new service area comes with a campaign: 10% JRE POINT fare reward for Touch and Go travel in the new area for the first 3 months. As I have said before, JR East is busy ramping up for Super Suica. Now that we have expanded Touch and Go Shinkansen, a larger Super Suica stored value purse is a given. Do I hear ¥30,000? ¥40,000? The latter would put Suica on par with WAON.
A reader asked a very good question: what’s the point of an Apple Pay My Suica? Can’t you already migrate a normal ‘unregistered’ Suica to another device if you loose your device?
There are 3 basic Suica plastic card categories: unregistered, registered (My Suica) and commuter. PASMO and all other major Transit IC card are the same. An unregistered Suica card just spits out of the station kiosk after putting money in and you are on your way, but it cannot be replaced or re-issued if lost. Buy a new one, end of story.
With a registered My Suica card, the customer registers a name and other information on the kiosk touchscreen and if the card is lost it can be re-issued for a fee with the original stored balance intact. It’s Suica insurance. Same deal for Commuter Suica which is registered Suica with a commute plan attached.
Mobile Suica uses the same 3 category card model but Apple Pay Suica changed the game considerably. When a user transfers any flavor of plastic Suica to Apple Pay, the card is permanently linked to the user Apple ID. When a user creates a Suica card in Wallet it creates a My Suica card also attached to Apple ID. Apple Pay Suica cards also seem to be ‘ghost’ registered to Mobile Suica even when the user does not have a Mobile Suica account. Only the Apple Pay and Mobile Suica system elves really know what is going on.
The upside for Apple Pay users is that Apple Pay and Mobile Suica preserve Suica card information so the user can safely remove Suica from Wallet, re-add it, or transfer it to another device at any time. It’s free insurance without the hassle of registering a Mobile Suica account. All Suica card types are treated the same. The downside is that if you want to migrate to Android you have to delete your Mobile Suica account and refund the card, then create a new card and Mobile Suica account for Google Pay Suica. It’s the same deal going migrating the other way.
To answer the reader question regarding the point of Apple Pay My Suica, the point is this: commute plans, auto-charge, Green Car seat purchase. The point of Apple Pay Registered PASMO is similar: commute plans and auto-charge. All this is done via Suica App or PASMO App. If you don’t want those extra services, a plain unregistered Suica or PASMO is all you need.
The real test of Super Suica is the wider definition and how it plays with both private transit companies inside and outside of the JR East (JRE) region, JR Group companies and what infrastructure resources JRE is sharing to eliminate needless duplication and save costs for all players. In the COVID era of constrained public travel, reducing costs while maintaining good service is more important than ever.
On the mobile front I think we can safely say that Mobile PASMO is an unannounced joint effort between JR East and PASMO Association. Mobile PASMO service and software is Mobile Suica dressed up in PASMO colors, the penguin character swapped out for a robot. The JR West announcement of Mobile ICOCA one week after the Apple Pay PASMO launch is no coincidence. The Super Suica mobile template is in place and road tested, PASMO and ICOCOA are the first 2 customers.
Who’s next? Junya Suzuki pointed out that Suica and PASMO together account for 80% of Japanese transit card issue, ICOCA added in makes that 90%. The next largest market and logical choice is manaca, the Nagoya area equivalent of PASMO. Forget about the Kansai area PiTaPa, the credit card as transit card concept was a bust and will likely never go mobile unless it’s repositioned as just a credit card. JR Central’s TOICA has deep pockets, and it’s said that TOICA runs on Suica servers, but JR Central has a sibling rivalry thing with JRE that might get in the way.
I’m taking a wild guess but I think manaca will be the next mobile service announcement with the Kyushu area transit cards (SUGOCA and nimoca) following soon after. The next development to keep an eye on is the ‘2 in 1’ Super Suica local transit card model and if other major JR Group members offer a rebranded version of it in their respective transit regions.
From a western perspective people wonder ‘why not just have one national transit card and be done with all this nonsense’. A national transit card has been discussed by various Japanese governments from time to time, and gone nowhere. The shared infrastructure Super Suica model that aims to lift all boats certainly plays more to the traditional Japanese business mindset. In these challenging times that can be a good thing.
One of the great tragedies of the NYC MTA is that it’s a too-much-public-not-enough-private transit cash pipe with too much exposure to local NY politics. NYT has a wonderful video on YouTube that explains the critical MTA flaw: politicians cleverly borrow against the MTA cash pipe for pork barrel projects that have little or nothing to do with MTA, but leave it highly leveraged and helpless to fix it’s own problems or invest in infrastructure.
Think of what MTA could really do if it was effectively protected from political interference, with full control of its own money and a Suica-like transit+payment empire, free to use the float of all those MetroCards soon to be OMNY transit cards.
One of the many things never discussed about open loop is who uses the float, but banks hold the money until the user account is settled with the transit company and they take a cut of the fare. It doesn’t take much imagination to see why banks and credit card companies reallylike promoting open loop.
Closed loop Japanese transit companies don’t talk about the float either but Japan IC Transit cards are like micro bank accounts with unused e-money balance and plastic card deposits sitting in all those Suica, PASMO, ICOCOA, manaca, etc. Japanese transit companies love to put all those micro bank accounts to work earning interest.
Japanese transit companies and Hong Kong Octopus have built those micro bank account transit cards into a very nice transit payment platform business that combines transit, payments and other services attached to the card which means there’s a lot more stored fare floating around than plain old transit-only cards. The addition of digital wallets like Apple Pay Suica and Apple Pay Octopus means there’s ever more e-money moving through those cards with short term parking…more float for transit companies to earn interest.
It’s a wonder why more transit companies haven’t followed the transit payment platform model to capture more business in the digital wallet era, but it’s testament to how little control they have over their own business destiny. Next time when you hear the praises of open loop over closed loop, remember to think about who’s floating in that business arrangement…and who’s not.