The Suica Part

The arrival of Apple Pay Express Transit on Transport for London this month is getting a lot more press than the debut of Apple Pay Express Transit and Suica in October 2016. Local coverage at the time was focused on the arrival of Apple Pay in Japan, Express Transit was barely mentioned. TfL is also getting more press than the debut of Express Transit on the New York MTA OMNY system earlier this year. Apple even created a special page highlighting its arrival.

I suspect there are a few reasons for the brouhaha. The Oyster IC transit card has been around since 2003, open loop EMV contactless cards service started in 2012, Apple Pay support arrived in 2015. MTA on the other hand only started OMNY with very limited open loop transit service in late May. The majority of MTA users still do the MetroCard manual swipe thing. In short TfL users are very familiar with Oyster transit IC cards, contactless bank cards and Apple Pay. They are well aware of the Express Transit difference. The same is true for Apple Pay users in areas like Sydney with a similar transit card system.

MacRumors did a good job of reporting the initial Express Transit on TfL test ramp up before the official debut. Joe Rossignol’s explanation of Express Transit mode support in “parts of Japan” is rather odd though. Which parts does he think don’t work?

The Suica part covers JR East, but since Suica is part of the Japan Transit IC Mutual Use Association this means that Apple Pay Suica works with the PASMO, ICOCA, manaca, nimoca, Pitapa, Toica, Sugoca, Kitaca and Hayaken parts. The Okinawa part will be joining in April 2020. Maybe Rossignol means the parts outside of the blue/pink square mutual transit use area? Most of these are already transit compatible with Apple Pay Suica (the ones with IC arrows pointing at them). This leaves the ones without IC arrows, which will be joining with Super Suica in 2021.

With the exclusion of the soon to join Okinawa OKICA, Apple Pay Suica already covers all the major transit parts in Japan. I have no idea which Apple Pay Suica incompatible parts Rossignol is referring to. The Minobu line? The Oigawa Railway? It is a mystery.

File:ICCard Connection en.svg
Japan Transit IC Map, outside white area cards are due to join Super Suica in 2021
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One down, two to go on Apple Pay Express Transit 2019 'coming later this year' list

Apple Pay Express Transit arrived on the Transport for London system over the weekend, some 6 months after it was announced. The other 2 remaining Apple Pay Transit cards announced for later this year are Chicago Ventra and Hong Kong Octopus. I already wrote about Octopus not launching this year. The Ventra odds seem a little better. On the bright side Ventra is run by Cubic, the same folks who operate the TfL and New York OMNY systems and already have EMV Apple Pay Express Transit support up and running. Also the Ventra Chicago Twitter account did mention Apple Pay Ventra as ‘coming later this year’ in a Nov 30 tweet.

On the not so bright side, Apple Pay Ventra is the native MIFARE transit card, the first native transit card that Cubic has ported to a digital wallet and a big complicated transit system at that. Nevertheless, Ventra is telling users that Apple Pay is coming this year. Let’s hope for a successful 2019 launch in the next few weeks.

Last call for Apple Pay Octopus 2019 launch

Apple Pay Octopus was announced in July as ‘coming soon’ with no official indication from Octopus Cards Limited when coming soon would happen. Today is the last day of November, on December 1 an updated Octopus Schedule and Fees Guideline went into effect. From December 1 all Octopus issue switched over to a new 3,000 HKD stored value limit and users can upgrade older cards to the new limit:

Starting from 1 December 2019, the stored value limit of all newly issued Octopus products – including On-Loan Octopus, Sold Octopus, Bank Co-Brand Octopus, Smart Octopus and Octopus Mobile SIM etc., will be HK$3,000.

From a technical standpoint it makes sense to host a new service when the system is ready to automatically upgrade older physical Octopus cards to the new stored value limit when transferred to smartphones. However, I seriously doubt the new stored value limit is a factor in the Apple Pay Octopus launch delay. The protests in Hong Kong that started just before the OCL July announcement are a much bigger factor. I suspect the protests were also a factor in OCL suspending Smart Octopus in Samsung Pay services without any explanation.

The Apple Pay Octopus launch has been on a long damn winding road since beta testing started a year ago. The clock is ticking, if a launch doesn’t come in the next 2 weeks or so, Apple Pay Octopus is a no show for 2019. My take is it will happen in 2020.

Touchless walkthrough transit gates coming in 2020, Mobile Suica eTickets more popular than ever

Mobile Suica has been under a lot of stress this week. The cloud service almost went down under a heavy load on November 26, at the same time the Suica App has shot up in the App Store Japan rankings, briefly touching the top 3 which is unusual. At first I scratched my head then remembered that Mobile Suica Shinkansen eTickets become available 30 days in advance, and that means the New Year vacation period. But the unexpected Mobile Suica load and Suica App downloads signal something else: more first time Suica App users than ever before.

Even though Mobile Suica Shinkansen eTicket purchases are not eligible for CASHLESS rebates, it looks like more Japanese are taking the opportunity to go cashless this year with many first time users signing up for a Mobile Suica account and going all in with Apple Pay Suica/Google Pay Suica. Discounts on some advance Shinkansen eTickets are also pretty good.

In other news Kyodo reports that JR East is developing a new ‘touchless’ walkthrough gate with an overhead antenna design that lets users keep Suica in a bag or pocket. No more waving cards and devices over a reader. It’s also big help for left handed people, Apple Watch Suica users and wheelchair users. Field tests are expected to start in 2020 with a rollout in 2~3 years. It sounds like a perfect match for the new eTicket system that JR East will launch in April 2020 and Super Suica coming in April 2021. It will be Super Suica all the way, we are entering the final years of magnetic strip paper ticketing.

It would be great fun if a few JR stations near Tokyo Olympic venues could have a few walkthrough Touchless gates installed for inbound Apple Pay Suica users to try out. Great for travelers with both hands full. Look ma, no hands! Take that QR Code fans.

UPDATE
It looks like Kyodo News is playing somewhat loose with their reporting. Ever reliable IT journalist Junya Suzuki contacted JR East for confirmation. JR East confirmed the basic story that they are developing a Touchless gate but have not committed to a rollout schedule. The picture that ran with the Kyodo piece is an older photo of an exhibition demo unit and not necessarily the Touchless gate, or the Touchless gate technology in development.

Fields of Dreams: the endlessly looping open loop vs closed loop transit debate

MacRumors reported that Apple Pay Express Transit support is finally arriving, bit by bit, on the TfL system after being announced back in May. I only noticed the piece because somebody threw a link to my site in one of the forum comments and the discussion has some interesting, and deliciously snarky, open loop bank cards for transit vs. native transit card debate.

The ‘Japan has a transit IC card problem’ angle is interesting. Yes, Japan does have a transit IC card problem, if you work for a bank credit card operation that wants to promote open loop, which I suspect is the case in the forum debate. The counter argument presentation-like power points are just too glib: to date no major transit system has junked native transit cards for bank cards, not even Oyster. Transit is a license to print money and the huge transaction volumes in Tokyo alone are mouth watering. The ‘problem’ for bank card players is how to angle for a bigger cut of the action.

The debate perfectly represents the plastic era transit card vs credit card mindset. More interesting to me are the things people don’t discuss: the impact of Apple Pay and Google Pay digital wallet platforms and transit business models. My take is that smartphone digital wallets do away with old plastic era distinctions and create new business opportunities for transit companies, if they chose to pursue them. Most don’t.

Tech analysts love to talk about ‘value capture’. The current cashless payments frenzy in Japan is all about capturing users to sign on with a payment platform then growing the ecosystem with more and more services that users, hopefully, want to pay extra for. Nobody talks about this in the open loop vs closed loop debate. The bank that owns the credit card owns the customer going through the transit gate, not the transit company. Put it this way, JRE POINT that go back into free Suica recharges, Green Car upgrades, etc. are vastly different from bank card points, as are the business platforms they feed customers back into. Moving people are money in motion, who gets a cut and what businesses do with that cut is everything.

It an interesting paradox that Europe and America talk about privatizing public transportation in various degrees but to date only Japan and Hong Kong have built highly successful businesses based on ‘value capture’. The endless open loop vs closed loop debate always comes down to this: you can argue all you want about the parts but in the end it is meaningless. To truly understand things, you have to examine the whole business model, how everything fits together, and how that can benefit everybody while growing and evolving.