Pour one for the iPhone X Suica NFC Problem

On the eve of new iPhones and new Apple Pay features with a growing transit card footprint, it is good to take a moment to remember the less than stellar NFC performance of the original iPhone X. The 2 year iPhone X Apple Care clock hits dead hour on November 3. I heart any iPhone X transit users with Apple Pay Octopus in Hong Kong or Apple Pay Ventra in Chicago who…

  1. discover their iPhone X NFC is wonky on transit gates
  2. discover their iPhone X Apple Care is expired

As much as my iPhone X Suica performance was a headache, my iPhone XS Suica performance is a joy. To be honest, I have not kept up with the iPhone X Suica NFC issue as most of the users who complained about having the problem have long since gotten Rev. B iPhone X replacements and moved on, or moved on to Pixel 3 JP FeliCa devices.

There are a few holdouts. Some report that iOS 12.4 has mostly eliminated transit gate errors for them, but that iPhone X NFC performance is still sluggish and wonky. Other holdouts report that iPhone X NFC is still a problem.

Most iPhone X NFC problem devices are sleeper cells, the user doesn’t live in a demanding enough NFC use environment to actively notice the issue. The iOS 13 release is due September 19, Apple Pay Octopus and Apple Pay Ventra should be online soon after, barely a month before iPhone X Apple Care dead hour.

Getting a replacement iPhone X for unacceptable NFC performance was never easy, but it’s about to become extremely difficult, if not impossible. Good luck to all iPhone X users out there, may the NFC be with you.

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EMV Express Transit Option Returns in iOS 12.4 Public beta 4

The temporary absence of EMV Express Transit in iOS 12.4 betas 1~3 has ended, the option has finally returned in iOS 12.4 public beta 4 (16G5046d). OMNY users in New York can use the beta for transit now, but since OMNY itself is one big beta system why bother with beta on beta? I think it’s better to wait for the official release. Portland HOP iPhone users need not bother as they can put real HOP card in Wallet. It’s way better than using a credit card, faster and cheaper too.

The only question remaining is, what kind of Wallet grunt work were they up that they had to remove EMV Express Transit temporarily in the first place?

Contactless Payment Turf Wars: Apple Card and the Prepaid Innovation of Apple Pay Suica

The Apple Card tag line says it all, “A new kind of credit card. Created by Apple, not a bank.” This is a bank card that’s not a bank card, except that it is a bank card with basic limitations that can never be changed: a bank card is postpay and this chains it to the creaky banking industry that everybody knows and loathes, with predatory fees, credit checks and service nonsense.

To overcome this limitation, and the slow uptake of EMV Apple Pay and Apple Cash, Apple is merging the postpay Apple Card and the prepaid Apple Cash, glued together with Apple Pay into one service. Two is better than one, right? This merge of postpay + prepaid is a long overdue development for the American market that builds on ideas and experience that Apple gained from Apple Pay Suica in Japan.

The credit card drag on Apple Pay adoption
The slow uptake of Apple Pay and other digital wallets in the USA is pointed out from time to time. The eMarketer blog piece in May 2018 predicted stronger growth for In-App loyalty prepaid cards like Starbucks, over Apple Pay and Google Pay. The Starbucks card is like many prepaid loyalty cards that offer points and rewards along with apps that let users add the loyalty card and attach a credit card for easy In-App reloads. It’s an easy entry point for customers to enjoy the benefits of using prepaid cards and get the most out of their purchases.

There are other factors cited for slow Apple Pay adoption rates in America, but I think the basic reasons are simple. During my 4 month American stay in 2018, I was surprised how slow and uneven the Apple Pay experience was at checkout. Pulling out a plain old credit card was often the faster hassle free choice. Either way it’s the same credit card right? It’s marginally move convenient, but not a new service.

That is the problem. Apple Pay and digital wallets are new technology but bank cards carry the combined weight of a creaky, out of date banking industry. Banks operations are retro, analog businesses living in the digital age on borrowed time. Bank cards with all kinds of new technology attached to them are still the same stodgy card services from the same stodgy banks.

The real point of the eMarketer piece is that In-App prepaid cards with postpay credit cards attached on the backend, offer customers a convenient new merged service that is than far better than either by itself, with bank cards limited to a indirect backup role. The prepaid card is the main point of contact between the customer and merchant, not the bank card. And this makes all the difference because it’s where the innovation is.


Japan Transit IC eMoney Transactions for non-transit purchases topped 8 million a day in April 2019

Apple Pay Japan success built with prepaid
Prepaid card use for transit and purchases in Japan dwarfs credit card use, especially with younger people. The major prepaid cards include WAON, nanaco, Rakuten Edy and Japan Transit IC cards (an interesting bit of history is that Suica and WAON were initially conceived to be a single card). Of these the Japan Transit IC card standard occupies a very special category, 255 transit companies form a common interoperability standard which includes Suica. There are more issued Transit IC cards than people in Japan, everybody has one.

File:ICCard Connection en.svg
Japan Transit IC Map, a very cool animated timeline is also available

The core group of 9 major cards (Suica, PASMO, ICOCA, TOICA, Kitaka, manaca, SUGOCA, nimoca, HAYAKEN) also share a common prepaid purse: Transit IC eMoney. The national coverage and scale of the major cards transforms Transit IC eMoney into something special found nowhere else: a de facto national prepaid card standard.

Transit IC eMoney transactions for non-transit purchases topped 8 million a day in April 2019. At current growth rates, transactions should be more than 10 million a day when Super Suica arrives in April 2021 and significantly enlarges the common eMoney purse footprint while unifying it.

The success of Apple Pay in Japan is very different from any other country: it was not accomplished with bank cards, it was accomplished with the Suica transit card with it’s common prepaid Transit IC eMoney purse. The success formula has 2 basic ingredients: de facto national prepaid purse for transit and purchases matched with Apple Pay postpaid bank cards for recharging Suica. Prepaid + Postpay as one service with bank cards limited to the backend for reloading.

The concept is just like In-App prepaid loyalty cards: a prepaid front end with a flexible open ended postpay backend. But this one is much more powerful because it can be used everywhere for transit and purchases. Putting the Suica prepaid card on Apple Pay and Google Pay with their infinitely flexible postpay backend for instant, anywhere, anytime recharge and reloads takes everything to a whole new level of convenience and use.

One of the failures of Apple Cash is that the current version is pigeonholed as a peer to peer service. How different Apple Cash would be if it was positioned like Suica. Apple Pay HOP users are just getting their first taste of new things now, as will Chicago Ventra users when Apple Pay Ventra launches later this year. Unfortunately eMoney is not part of the mix for HOP and Ventra, only transit, nor are they compatible with each other.

A first step towards virtual currency?
I used Suica before Apple Pay arrived and have nearly 3 years of Apple Pay Suica use under my belt. The prepaid + postpay service model matched with transit + purchase eMoney is a combination that is almost impossible to describe to a person who has not lived with it. The daily experience is very different from using bank cards which feel like hard money wrapped in plastic. Hong Kong Octopus card users are probably the only ones who can relate to it, and then only Smart Octopus in Samsung Pay users.

Suica eMoney on digital wallets represents a small step towards virtual currency in a way that bank cards do not. QR Codes serve the same function for China, the first small step away from hard cash. Even though QR Codes payment systems are usually hard wired to bank accounts, they are not run by banks.

None of these schemes are real virtual currencies of course, but they are an important cushion for the mind. The daily use experience prepares people for a future where payments, and the whole infrastructure supporting them, will be completely different from what we have now. It changes old habits, and more importantly, old ways of thinking, just a little. Taking the next step from there is much easier.

A few days ago I wrote:

The Apple Card rollout due this summer is a head scratcher. There are lots of things Apple Card can do in Wallet that other cards, as yet, cannot do. It feels too big and important for just a press release and a new web page. And yet, by itself, it’s too small for a full blown Apple event. I think the Apple Card rollout is going to be a very interesting release for all things Apple Pay.

The new Apple Card + Apple Cash will be the first major postpay + prepaid Apple Pay service for iPhone users in America. The experiment will be fascinating to watch, but Japan remains the world’s most exciting and heady payments market experiment there is.

Thoughts on iOS 13 Apple Pay Express Transit

The iOS 12 release in September 2018 was a rough one for Apple Pay Suica users. It brought new problems like random gate errors, and left old problems, like unresponsive Suica Recharge and Suica balance not updating, unfixed. Everyone experienced problems, everyone except A12 Bionic iPhone XS and iPhone XR users, that is.

iOS 12 was especially tough on Revision B iPhone X Suica users. They had suffered from the iPhone X NFC Suica problem, had finally gotten a NFC error free Rev. B iPhone that worked great on iOS 11. The sudden experience of plunging back to error filled square one was a cruel twist of fate that left them confused and upset.

iOS 12.3 fixed everything for everyone, with trouble free wicked fast Apple Pay Suica performance. It is the best Apple Pay Express Transit iOS that Apple has ever delivered. However, Rev. B iPhone X owners are still worried. One owner told me, “I think that I’ll have the same problem all over again with iOS 13.”

This is a perfectly understandable concern, but I’m going to let you in on a little secret: if you are using iOS 12.3, you are already using iOS 13 Apple Pay Wallet. Apple simply has not told you yet.

iOS 12.3 Apple Pay Wallet is a whole new thing. The changes Apple made to it in iOS 12.2~iOS 12.3 are massive. Express Transit performance gains, and the new EMV Express Transit option are equally massive. Most people assume that the Wallet changes are for Apple Card, which they are, but few people understand that the changes are also for the Apple Pay Transit support of HOP, Ventra, NY MTA, and more, which Tim Cook announced along with Apple Card on March 25.

In short, Rev. B iPhone X users, and all iPhone users, have nothing to worry about anymore. If your Apple Pay Suica or Apple Pay HOP is working great on iOS 12.3, it’s going to work great on iOS 13 too.

Express Transit Tips for Apple Pay Users

Apple Pay HOP card launched on Portland TriMet today, the first transit system in America that supports Apple Pay Express Transit. Express Transit is coming soon to New York OMNY and Chicago Ventra, here are some Express Transit card tips and other things for Apple Pay Wallet users that I have learned from 2 years of daily Express Transit Suica use.

  • Express Transit only works while Face ID/Touch ID is active. Express Transit stops working when Face ID/Touch ID is disabled. It is easy to disable Face ID without realizing it, resulting in a rude passcode request at the transit gate. iPhone X, XS, XR users need to be extra careful if wearing a face mask during a commute, 5 misreads disable Face ID, or putting the device in a fairly tight pants pocket as pressure on the side buttons also disables Face ID. iPhone X, XS, XR users can avoid these issues by turning off Raise to Wake. If you still have problems the last resort is turning off Face ID for unlocking iPhone, be sure leave it on for Apple Pay.
  • Express Transit works great on Apple Watch, depending on which wrist you use, but in winter when wearing layers of clothes, iPhone is faster to whip out at the gate. iPhone is also free from ‘left wrist vs. right side’ gate reader issues. As one reader points out: “Apple Watch works great for Express Transit except it’s on the wrong wrist in many cities. I’m a broken record at this point but a smart band would be a terrific addition to the lineup (and would solve this problem).” Adding money/reload/recharge to HOP and Suica transit cards with Apple Pay on Apple Watch is also much less convenient than iPhone.
  • iPhone X users need to be aware of the iPhone X NFC problem which can cause endless gate errors with Express Transit. You may need Apple to replace it, never an easy thing.
  • iPhone XS/XR users can finally put the Express Cards with power reserve feature to good use, it is cool and assuring knowing that you have 5 hours of reserve power to clear the final destination gate.

Enjoy Express Transit on Apple Pay and happy travels.

“first time in America”