Apple’s Handsome Anthony Moment

Good old William S. Burroughs hit the nail on the head explaining what the title of Naked Lunch really meant: that awkward frozen moment when everybody in the restaurant sees exactly what is on their fork. iOS developers staring at the App Store fork don’t like what they see: an Apple platform that’s supposed to be a level playing field, where the reality is that Apple plays favorites and cuts side deals, a losing game of lowering standards.

People far smarter than me already editorialized Tim Cook’s opening statement at the Congressional antitrust hearing. I won’t go into it here except to say, what did they expect? The whole affair, on all sides, media included, was like a bad lip read parody, an awkward Handsome Anthony intro without the humor.

Octopus Cards Limited (OCL) released an iOS Octopus app for tourists last week that perfectly illustrates what’s at stake in Apple’s losing game of lowering standards. The long delayed Apple Pay Octopus launch in June was very successful but OCL shut inbound visitors out by limiting the Apple Pay Octopus service to Hong Kong issue bank payment cards. This is something that Apple Pay Suica has never done. All Apple Pay cards and iPhone users from around the world are welcome to use Suica. This is why Suica remains the gold standard of what a transit card on mobile should be.

Instead of following the Suica example, the Octopus Tourist app adds an Octopus card to Apple Pay Wallet with a non-Hong Kong issue card. However the currency charged to the users Apple Pay cannot be in local HKD currency. OCL forces the users to choose another currency which because the default currency for the life of the card. This adds an invisible surcharge over using local currency transitions, 4% or more, which is OCL taking a cut.

This is called forced Dynamic Currency Conversion (DCC) and is a credit card compliance rule violation. Visa, Mastercard and all stipulate that merchants cannot impose any requirements on the cardholder to use a non-local currency. Why OCL is so brazenly breaking these rules, and why Apple is allowing this level of gouging in a major app from a major Apple Pay payment provider is not good at all. As FeliCa Dude says, “Apple should swiftly rebuke this kind of grasping banditry lest it poison their platform.”

If Apple does nothing, I think we’ll have the answer Tim Cook didn’t give at the Congressional hearings. Okaaaay?

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JRE POINT and Ekinet finally connect in 2021

In case you ever wondered what the QR Code reader on JR East station tickets machines is for: picking up online preordered JR East commuter passes, and nothing else. This will change in the Super Suica summer of 2021 along with a ‘renewed’ Ekinet service. Instead of entering a PIN code, users can flash a QR Code in the Ekinet App at station kiosks to pickup reserved paper tickets or pay for tickets at an ATM.

The biggest change is that Ekinet points are morphing into JRE POINT…finally. Just like you use JRE POINT for a free Suica recharge, you can use JRE POINT for ticket purchases, updates to reserved seats, Green Car seats, etc. The expanded Ekinet will support more Shinkansen eTicket discount options and Business Ekinet will be gaining Shinkansen eTickets for the first time. The press release says that the inbound only JR-EAST Train Reservation system will be getting an overhaul at the same time.

Let’s hope the renewed Ekinet is easier to use than the current one.

Road to Super Suica: cloud and offline feature integration for MaaS perfection

Mobile Suica Shinkansen eTicket service via Suica App ended in March 2020, replaced by the cloud based JR East Ekinet Shinkansen eTicket service. Since Mobile Suica Shinkansen is gone and Ekinet eTickets live on the cloud, I assumed that iOS 14 PassKit would remove the Mobile Suica Shinkansen related (isInShinkansenStation) call because there’s no need for it anymore.

A reader pointed out that not only was I wrong, he reported that iOS still uses the PassKit Suica Shinkansen call with Ekinet eTickets. Notification Center throws out the same ‘Shinkansen’ Suica Notification when the user goes through a JR East Shinkansen gate with an eTicket.

This is handy for the user event transaction record even though the Shinkansen transit fare is not recorded: eTickets have nothing to do with Suica balance transactions, they’re along for the ride so to speak. The interesting thing is that the Shinkansen notification does not show when using the JR East ‘Touch and Go’ Shinkansen service which does use the Suica balance. It also does not show when using the JR Central Shinkansen SmartEX/EX Reserve eTickets which are cloud based like Ekinet.

The eTicket side attraction offers some insight into the ‘what stays offline and local, what goes to the cloud’ dilemma JR East (JRE) faces as it closes in on the next generation ‘2 in 1’ Suica architecture due for release in spring 2021. JRE has said many times and in many ways that the future of the Suica platform will combine cloud services with the fast local processing of the FeliCa powered Suica architecture. However, details are few, with different pieces dribbled out in bits like the new Ekinet Shinkansen eTicket service.

What’s the overall vision and goal of next generation Suica which I call Super Suica? There’s a lot of ground to cover to find out so let’s examine things in 2 basic categories: the card architecture (offline and local) and the payment platform (cloud) even though those distinctions are increasingly blurred. Here is my take based on what JRE has announced so far.

Super Suica: the Transit Card

Next Generation Suica “2 cards in 1” architecture, new FeliCa OS, new IC card format announced by Sony, JR East, JR East Mechatronics (JREM) in September 2018 for release in spring 2021. Ultra Wideband Touchless support will likely be in place on the mobile side though it will be a few years before Touchless transit gates are in service.

The next generation ‘2 cards in 1’ Suica architecture hosts partner transit cards and services on Suica infrastructure, effectively extending the Suica system to non-JRE transit companies. 2 in 1 partner transit cards gain the benefit of Suica hardware and Mobile Suica infrastructure with considerable cost savings related to plastic card issue and management. The heart of Super Suica remains the offline stored fare. JRE hopes to grow Mobile Suica cloud services as much as possible with the lower cost next generation Super Suica architecture.

Stored Value Update, Region expansion and Commuter Pass Changes
Starting with the basics, it’s a no-brainer that Super Suica will raise the current ¥20,000 stored value limit, likely doubling it to ¥40,000. This would put it in line with other eMoney prepaid cards like WAON and nanaco, also similar to the recent Hong Kong Octopus stored value update. The increase would have broad appeal to tourists, business travelers and shoppers everywhere and extend the JR East ‘Touch ‘n Go” ticketless Shinkansen service area.

Transit cards cover wide areas but transit card commuter pass areas are currently limited to sub-regions hard-wired for IC transit card support

A long standing hurdle for Super Suica to clear is the transit IC card region limitation. The current transit card architecture assigns cards to a unique areas and the stored value doesn’t work across regions. Transit systems within the same card region such as JR East and PASMO have their fare systems connected so that a user’s transit card can enter a JR East station then exit a PASMO member station with the fare instantly calculated and deducted from the offline card balance.

This region limitation is a real problem for transit users in fringe areas. In order to use an IC transit card they have to exit and re-enter separate transit company gates at specific transfer station points. There is a Japanese word for this: matagaru which means ‘dismounting the saddle’. The only viable options are mag strip commuter passes or paper tickets.

The 2 in 1 Heart
In September 2019 JR East, JR Central and JR West announced new cross region commuter pass rules going into effect in spring of 2021, exactly when Super Suica arrives. Superficially the changes are about making cross region local to Shinkansen transfers easier for commuters, but the timing suggests other changes are coming.

The ‘2 in 1’ Super Suica concept has special meaning for commuter passes. The current Suica only supports 2 basic patterns via a card id commuter pass account number: JR East only lines, and connected commuter passes covering JR East and connecting lines. 2 in 1 Super Suica will support commuter passes on non-JR East lines and bus lines.


Super Suica: the Platform

File:ICCard Connection en.svg
Japan Transit IC Map

The primary aim of Super Suica is extending the platform reach with shared infrastructure to rural areas too small to establish their own local transit cards. Pay close attention to the transit cards outside the pink area, with the exception of PiTaPa. These are 2nd tier local area transit cards currently orphaned from eMoney or transit interoperability. There are also ‘off the map’ areas such as Utsunomiya Light Rail and Iwate Transit Co. Ltd. who have announced Super Suica agreements with JRE. These are the initial target areas.

Super Suica enlarges the pink area to include those 2nd tier and off the map cards. Those who sign on join the common interpretability area for transit and eMoney, and also gain access to Mobile Suica hosted Apple Pay Suica, Google Pay Suica and Osaifu Keitai. This is a real boon for smaller areas who, up to now, couldn’t afford to launch their own card operations. I suspect it will be very attractive to all transit card operators who run on shoe string budgets, they can save money by offloading card operations to JRE and get the mobile goodies.

What does Super Suica mean for the major transit cards like ICOCA and TOICA? It depends on what kind of deal JRE offers them. Even if the majors don’t sign on directly I see them getting access to the new Suica card format and Mobile Suica IT assets. At the very least we’ll see something similar to Mobile PASMO: licensed Mobile Suica IT assets rebranded as Mobile ICOCA, Mobile TOICA, etc.

2 in 1 Reward Points and Auto-Charge
In addition to the 2 in 1 commuter passes, Super Suica also supports different reward point systems. Users will be able to exchange points for a Suica recharge just like they do now with JRE POINT and Rakuten Pay points. Auto-Charge for 2 in 1 partner branded credit cards will certainly be supported as well. Points and Auto-Charge may seem mundane but they are very important to customers and transit companies, a vital part of luring foot traffic, new businesses and visitors to local areas in an era of shrinking passenger traffic.

Expanding and leveraging the Recharge Backend
The ever expanding Mobile Suica recharge backend is a fascinating development mostly ignored by the media even though it’s where the action is. Suica and the other transit cards are a huge green pasture full of cash (less) cows waiting to be milked by card companies and payment platforms. JRE lets them milk Mobile Suica cows for a cut. Up until Apple Pay Suica came along in 2016, JRE was the only recharge backend. As of July 2020 there are 5: JRE, Apple Pay, Google Pay, Mizuho, Rakuten. 2 in 1 partners will have the ability to add their own recharge backends with apps, if they so choose.

Other points to remember: the recharge backend only works on iOS and Android platforms, point rewards can be used for Suica recharge. Currently that only works with JRE POINT and Rakuten Points but this will be extended to the ‘2 in 1’ partner point systems.

JR East plans to grow Suica financial services and has invested in crypto coin ventures

MaaS Suica
It’s clear that the really big Super Suica changes will be on the cloud side. Transit card eMoney has been a huge success, but Suica has to evolve to remain a viable payment platform in today’s hyper competitive world of mobile payments.

That next step is Suica NFC Tag payments. Think of it as Suica transactions without a reader, where your smartphone is both Suica card and Suica reader and let’s call it MaaS Suica. JRE joined the MaaS alliance in November 2019 closely followed by an December 2019 press release announcing NFC Tag tests with 4 partners: JRE (Suica), DNP (NFC Tags), Sony (FeliCa) and AquaBit Spirals (NFC Tag SmartPlate payments software).

JRE & us (AquaBit Spirals) have announced to conduct technical verification for the use of NFC tags focusing on transportation and ‘payments’, and that the role of Sony is to investigate technical specs as part of promoting a lifestyle through ‘FeliCa’ tech. You may know what we mean😉

AquaBit Spirals CEO Tomohiro Hagiwara

It’s clearly implied by the diagram and by comments from AquaBit Spirals CEO Tomohiro Hagiwara that Suica powers the NFC Tag payments middle section via the cloud. This means the Suica card balance on smartphones works ‘over the cloud’. Suica is unchained from the NFC reader and can be used to pay for any kind of NFC Tag linked service or item.

JRE has been testing MaaS using QR Codes instead of NFC Tags with their Ringo Pass app for Saitama. The pilot project is covered in the NFC Forum article JR East Railway And NFC Propelling The MaaS Revolution. A 2nd MaaS pilot project has been announced for Sendai. An interesting side note here is that the old card reader+Windows+plastic Suica card Suica Internet web shopping service is going away this year, the final plug is due to be pulled by September 2020. I think we’ll be hearing much more about MaaS Suica with the Super Suica launch.

NFC Tags and App Clips level the playing field with QR
One of the ways PayPay and other QR Code players disrupted the Japanese market so quickly was leveraging the low entry point bar of static QR codes combined with mobile smartphone apps. All stores need is an official QR Code sticker. Small merchants are freed from having to invest in POS hardware to go cashless.

NFC Tags eliminate the cost advantage of QR and level the playing field. Combined with the capabilities of iOS 14 App Clips, they become a killer app:

The pieces appear to fit very nicely now: the NFC background tag sheet pops-up ‘while the screen is on’, the right code snippets load in for a simple focused task, the user can Sign In with Apple ID if needed, and pay with Apple Pay. Simple, uncluttered action; no apps, no Safari launch. And we have background NFC tag reading on every current iPhone model.

MaaS Suica combined with new technologies like App Clips and background tag reading iPhone has the potential to take the Suica eMoney payment platform to a whole new level. Success depends on how aggressively JRE promotes the service and how they license it to sister transit card operators. It would be great if we got MasS Suica, MaaS ICOCA etc. working seamlessly as a single mobile payment just like transit cards do now.

The Bigger Picture
Super Suica, the card, and Mobile Suica aim to deliver more services, such as the renewed and expanded Ekinet coming in summer 2021, with a lower cost internet based cloud infrastructure while keeping the great thing about Suica: super fast secure offline transactions and interoperability.

Based on what JRE has said over the past 2 years in the press and in recent company announcements, it seems we’ll have 3 basic versions of Suica: (1) Hard-wire Suica (what we have now) for major stations and stores, (2) Wireless Suica, a simplified low cost cloud based gate terminals to cover rural stations not currently on the Suica map, (3) MaaS NFC Tag Suica to cover everywhere else.

There will be 2 kinds of Super Suica partners:

  • Direct 2 in 1 partners host cards on Super Suica with all the benefits of Mobile Suica.
  • Indirect partners get the new Suica card architecture, New FeliCa OS improvements, Mobile Suica IT assets and wireless Suica gate system technology. The arrangement will be similar Mobile PASMO who licensed Mobile Suica IT assets but run their own cloud service with their own backend mobile recharge, commuter passes and reward points.

If Mobile PASMO is any indication, I think most of the major transit card players will end up as indirect partners. It would be great if Super Suica turned out to be an all encompassing nationwide thing on digital wallet platforms. The truth is that commuter passes, recharge backends, auto-charge and point reward empires are the crown jewels. Transit companies will always want to keep those in-house.

Next generation Super Suica won’t be a slam dunk national transit card that does it all, but it will be start line towards that goal. Think of it as a new foundation of shared infrastructure and services with transit companies working toward a cohesive de facto standard that has lots of mobile potential.

The timing is also good: in these COVID challenged times all transit companies are under enormous pressure to streamline, consolidate and bury old grudges. The current situation will likely drive Super Suica uptake as the payoff is more mobile services with reduced operating costs. Another case of COVID driven ‘unfortunate success’. I remain hopeful that, in the end, we’ll be pleasantly surprised.

Mandatory Suica App Update

Mobile Suica issued a system notice today: there is a new version of Suica App (v2.7) on the App Store, users must update by July 21. After that date you must use version 2.7 to access Mobile Suica services. The only difference I could see is that Mobile Suica Shinkansen eTicket purchase history search has been added going back to July 2019. Mobile Suica Shinkansen eTicket service ended March 13, replaced by the cloud based Ekinet eTicket service.

Some users have been experiencing multiple Mobile Suica 1201 recharge errors recently. There’s a lot of cloud work JR East has to do on the Mobile Suica and Ekinet systems in preparation for the next generation Suica debut in spring 2021. The mandatory update requirement is a sign something is changing on the backend. Hopefully JR East is fixing all things Mobile Suica.

iOS 14 Apple Maps Japan Wish List: filling the blanks

Apple Maps Japan can’t catch a break. Traffic has been available since September 2019 but only got listed on the feature availability page last week, June 2020. Handa International Airport is currently listed for indoor maps but the data isn’t there. And so it goes for the Apple Maps 2.0 reboot. Here is a quick list of missing features along with some new feature requests.

Missing Pieces

There are several iOS 13 Apple Maps features that have not made it to Japan:

Apple Maps 2.0
New maps were rolled out in America in January 2020 with Europe slated next. A rollout for Japan has not been announced but Apple Maps vans and walkers are in the field working on it. Justin O’Beirne posted screenshots of Apple Maps’ cartography evolution from 2013~2019. The basic design language for urban areas hasn’t really changed the entire time. Cartography for Japanese urban areas is already drowning in detail and screams for an overhaul to make it intelligent and easy to use: a more unified cartography that does a better job of incorporating transit instead of useless separate ‘views’.

More accurate detail is welcome but I don’t think Apple can ever get the whole picture by themselves. Google Maps real genius is it’s deft ability to synthesize disparate data suppliers in a seamlessly whole service. Apple Maps biggest single failure, from day one to today, is it’s utter inability to synthesize various data suppliers into a solid service.

It’s a chunky clunky Japanese product, from eternally 3rd rate map data from IPC on down to Foursquare. Top Japanese map data supplier Zenrin is the logical choice especially since Google dropped them, but Apple doesn’t seem inclined to switch, nor could they intelligently integrate it.

Justin O’Beirne: The Evolution of Apple Maps’s Cartography

Look Around
It would be very nice to have this feature in Japan.

Junction View
Navigating complicated elevated expressways in urban areas isn’t just in mainland China, it’s been a fact of Japanese urban driving since the 1960s’. Junction View like navigation has been standard in Japanese navigation systems for a long time, it should be standard in Apple Maps too.

Real-time transit
Another no-brainer transit feature for Japan, but Japan is a low priority and the transit system is complex. There are plenty of transit data suppliers but given Apple Maps limited ability to integrate different transit data sets, I think it will be a long time before we see the addition of real-time transit in Japan, if ever.

There are small tweaks Apple could make to transit directions that would make them much more useful such as transfer station platform numbers and crowd conditions, features that Google and Yahoo Japan have offered for a long time.

New Features

The iOS 14 Apple Maps wish list has some repeats from the 2019 wish list:

  • Adaptive transit times: car and walk navigation is adaptive: if you take a different road the navigation route updates automatically. Transit directions need to be adaptive too.
  • Crowding information: Yahoo Japan offers crowd heat maps for locations, both Yahoo Japan and Google Japan maps offer rudimentary transit crowd information. In the COVID era crowd information for transit and locations is a must have feature.
  • Improved Apple Watch transit integration: Apple Watch turn by turn navigation integration with iPhone is excellent but transit integration is weak and passive. The current iOS 13/watchOS 6 version ‘sits on the wrist’ without alerts, haptic feedback or much interaction, and it’s brain dead after switching to another watch app.
  • Indoor/Underground Station Maps: Last but not least real indoor maps for vital station hubs covering Tokyo, Shinjuku, Ikebukuro, Osaka, Namba, etc.
  • Offline navigation: Apple Maps turn by turn won’t be completely reliable unless it navigates in expressway tunnels instead of dying.