The last one is a small step with big implications that people are only beginning to see. Instead of a plastic card that is read into Wallet or added to Wallet with a 3rd party app, Suica creation is now a basic function of iOS 13 Wallet that works with other Apple Pay cards from anywhere to add money. Suica is part of iOS. Think about that.
All of these developments have been driven by Suica, this is why Suica is the Apple Pay bellweather. Transit card creation in Wallet and adding money with Apple Pay cards from anywhere will undoubtedly be part of Apple Pay Octopus and migrate to other Apple Pay Transit cards over time. If you want to see where the Apple Pay puck is going, keep an eye on Apple Pay Suica developments. What arrives on Suica first becomes standard later.
Well that’s a nice way to solve a iPhone X Suica NFC problem: upgrade to iPhone 11. Suica performance on Apple A12 Bionic and A13 Bionic iPhone models is a whole new level over previous models thanks to the Secure Enclave design that bypasses iOS for transactions and also gives us Express Cards with power reserve. I love that he loves Suica again and says goodbye to QR too.
AquaBit Spirals CEO Tomohiro Hagiwara responded to my post and took up the Softcream Cashless Index (SCI) challenge, promising to deliver a SCI score of “over 5” with his SmartPlate NFC tag payment service that works with Apple Pay and Google Pay:
watchOS 6 does not support Core NFC, but developers with a PassKit NFC Certificate from Apple can do lots of interesting things with Apple Pay NFC functions. Not that I’m asking Hagiwara san to divulge anything because PassKit NFC Certificates come with all kinds of non-disclosure conditions. But I do look forward to all the Apple Pay goodies coming with iOS 13. So far we have Apple Pay Octopus, Apple Pay Ventra, and Apple Pay myki on the transit side, there will be lots of new stuff on the NFC tag side. It would be great if SmartPlate can join the iOS 13 Apple Pay service rollout with backup from Apple Pay lead Jennifer Bailey at the Apple Event.
I look forward to reporting about the NFC Tag Apple Pay experience, and tasting great softcream along the way.
Summer is here and the increasing number of Apple Pay Suica inbound tweets are fun to read as always. I saw inbound in action recently at a local station NewDays, 2 Chinese women walked up to the checkout and asked in English “Can we pay here with this?” One was waving a Suica card, the other waving her iPhone. People really appreciate the ease and speed of Suica Express Transit.
However, there are still lots of times on the road when you come face to face with the so called ‘curse of Japanese cash addiction’, and the fact that, even though things have changed a great deal since Apple Pay arrived in Japan, there’s still a long way to go.
I had the that kind of experience recently coming back from Minobu on the Keio Highway Bus. That particular bus has a 10 minute rest break at Shakado Parking Area just outside of Kofu on the Chuo Expressway. There’s barely enough time to dash to the restroom and grab a drink for a long congested crawl to Shinjuku Bus Terminal.
Like many Japanese highway rest areas, Shakado offers delicious looking local specialties. Kofu is a well known for it’s delicious fruits, the Shakado cafeteria softcream fruit parfait looked too good to pass up. With 6 minutes to spare I hunted for the softcream button on the meal ticket machine, which was Suica compatible, but couldn’t find it. I asked one of the staff and they pointed to a separate smaller ticket machine that was just for softcream, a separate stall vendor, and not only was it cash only, it was coin only.
Fortunately I had lots of coins that day, a rarity, but pitied another poor westerner wandering around obviously interested in that delicious looking softcream without a clue how to buy one, but I was out of time and dashed for the bus. With a softcream fruit parfait. It was delicious.
After 2 years of writing about cashless/contactless trends, I think I have finally hit on the perfect index for Japan: The Softcream Cashless Index (SCI). Nothing is more regional, seasonal, ubiquitous, cash only and delicious as the endlessly glorious variety of Japanese softcream. Sure, MiniStop has pretty good softcream and all the cashless options like Apple Pay Suica, but those parking area seasonal regionals like Yamagata Cherry softcream (to die for) are always cash cash.
On a scale of 1~10, I put the Japanese national SCI average at 2. Softcream stalls are the worst candidates for the usual cashless options: credit cards/FeliCa/QR etc., because they are mostly one person operations, or side stalls of larger retail operations. Nobody wants to invest in cashless terminals, or even cashless ticket machines, for such mundane, low priced, low margin softcream side business. If softcream can be made cashless, Japan will truly be a cashless nation.
The NFC Tag Apple Pay Option The ideal cashless payment infrastructure investment for softcream operations is no investment at all. This is why meal ticket machines are so popular in Japan for food serving businesses: they eliminate the cash register all together, the staff can focus on serving customers instead of wasting valuable time babysitting customer payments.
The process leverages “Core NFC,” enabling an iPhone to scan an NFC tag that launches an app or a website, so users can skip the step of downloading an app when accessing a new service, Bailey explained.
“There’s no app requirement and no requirement to pre-sign up,” Bailey said, describing how Bird is using the technology in a pilot, with Apple Pay’s “pay load” automatically working to establish the account information to set up a one-time purchase. “It’s so much easier for new users to get into these services very quickly,”
For NFC Tag Apple Pay to succeed in Japan, it has be offered through major payment providers like J-Mups or Recruit AirPay (who already provide regular terminal based Apple Pay), who can package it together with their cloud backend and an app. From the softcream vendor side, all they need to do is sign up for NFC tag payment service via the setup app and receive a free NFC tag and logo. And that’s it, they are in business.
The concept is similar to the SmartPlate demo only more streamlined. It has to remove all payment involvement from the softcream side, just like a meal ticket machine. The only thing they need to do is look at a screen to confirm payment.
In lieu of Google Pay offering a similar NFC tag payment scheme, the payment provider could conceivably offer an Android app to include that platform but this breaks the Jennifer Bailey rule: no app, no sign-up. This rule is what sets NFC Tag Apple Pay apart from QR Code pay services who want you to sign up in an app to get your personal data. This rule will be the reason for the success of NFC Tag Apple Pay.
Can it change the Softcream Cashless Index? If Apple and their Japanese payment partners can replicate the hands off, no cash register, no brainer experience of Japanese meal ticket machines with NFC Tag Apple Pay, definitely yes. There’s only a year to go until the hot summer Tokyo Olympics but if the SCI average can make it to a 5, or more, that would be a huge tasty success and invitation to eat your way across Japan without a wallet.
Apple’s strong point is the tight integration of software services across different devices that no other platform can match. Apple Pay Suica works on iPhone and Apple Watch, but the latter combination of technology, function and size makes it a completely different and beguiling experience. Apple Pay on Apple Watch is its own special thing.
A Temporary Split in the NFC Evolution Line? The evolution of Apple NFC on both iPhone and Apple Watch was in lockstep up until the arrival of A12 Bionic in 2018. The A12 Bionic NFC powered background tag and Express Transit power reserve features only work on iPhone XS/XR. Apple Watch Series 4 does not support these NFC features, nor does watchOS support the Core NFC framework, this means that NFC tag Apple Pay on Apple Watch is out of the question.
Is the feature split temporary or does it represent a different line of NFC evolution for Apple Watch? The absence of Core NFC makes sense because watchOS does not support 3rd party apps, at least not yet. Express Transit power reserve however, would be a great feature to have on Apple Watch as iOS 13/watchOS 6 Apple Pay Express Transit rolls out to Chicago Ventra, Brisbane myki and Hong Kong Octopus.
Getting that feature on Apple Watch depends on how quickly Johny Srouji’s A team can implement the A12 Bionic Secure Enclave design that handles basic Apple Pay transactions directly and bypasses the OS, on the S Series chip. I cannot believe they are not pushing hard to deliver the goods as soon as possible, perhaps even with Apple Watch Series 5 featuring a S5 Bionic chip.
Delivering a S5 Bionic would get Express Transit power reserve on Apple Watch with NFC performance gains as well. It would also give Apple the option to add NFC background tag reading later on as watchOS becomes more powerful and independent.
The iPhone 7 FeliCa Question There is one fuzzy area of iOS 13 Core NFC and it is iPhone 7 FeliCa support. At WWDC19 Apple announced that all devices, iPhone 7 and above, would support the enhanced NFC tag lineup: NDEF, FeliCa, MIFARE, ISO 7816, ISO 15693, VAS. But this does not match up with Apple’s own device specs for adding a FeliCa Suica card to Apple Pay:
Apple is telling developers that all iPhone 7 models are good for FeliCa but telling customers that only iPhone 7 JP models are good for FeliCa. This means we get one of two scenarios:
iOS 13 retroactively adds FeliCa support to all non-JP iPhone 7 models. Apple can do this by adding device specific FeliCa keys as iPhone 7 NFC hardware is the same for all models worldwide.
iOS 13 Core NFC FeliCa tags work but non-JP iPhone 7 models (without FeliCa keys) do not work for FeliCa transactions at the terminal.
The latter ‘FeliCa keys vs. No FeliCa keys’ scenario is illustrated in a comment post by Reddit user FelicaDude, if I understand correctly, that without device specific FeliCa keys iPhone 7 only works in basic Read/Write mode without encryption, with FeliCa keys iPhone 7 works in Read/Write encryption mode necessary for local offline processing with payment terminals (i.e. Suica):
The international iPhone 7s can do basic FeliCa read/write without encryption, because they embed a FeliCa-capable CLF <contactless frontend>. Apple has chosen not to provision them with Osaifu-Keitai keys, probably to avoid paying royalties to FeliCa Networks for each device.