Another Japanese government cashless promotion gimmick: My Number Point (Updated)

Now that the CASHLESS Rebate program is over, we have a new Japanese government program promoting cashless use for points: My Number Point. And yes it comes with an app. There’s just one tiny gotcha: you have to have a plastic My Number card because as the campaign name makes clear, the whole enterprise is about motivating people to register for a one. The program runs July 1~March 30. Users can get the equivalent of up to ¥5,000 in points in exchange for ¥20,000 worth of cashless shopping.

The basic idea is that starting from July 1, you use the My Number Point app to read the NFC tag in your My Number card and register your cashless payment service of choice: Suica, PayPay, credit card, etc. The full list is here.

After you buy ¥20,000 worth of stuff by August with your registered cashless payment, you get points. We won’t know how bad the sign up process is until it goes live. At best it looks convoluted, and a lot of hoops for only ¥5,000 in points. COVID is already more than enough motivation for going cashless but payment players are dutifully offering extra points for registration.

As your dutiful field reporter, I volunteer to dive into the NFC tag registration process on July 1 and tell you all about it. Here’s the official list of compatible iPhone devices.


Suica/JRE POINT Registration
The registration process, like the app, looks and acts like a government bureaucracy product. It’s not pretty but gets the job done. But it’s a fun exercise using the My Number Card NFC tag for secure login. Here is a quick summary.

Before you start: you’ll need a My Number Card, and a JRE POINT account with your Mobile Suica registered.

(1) Have your My Number Card and 4 PIN login code ready and launch the app. When reading the My Number Card NFC tag with iPhone be sure to be far away from any metal. The card read process seems very susceptible to it
(2) Follow steps 1~6 shown here to login and get to payment system registration
(3) You need 3 pieces of info from your JRE POINT account: the JRE POINT exchange number, the registered katakana account name, the registered birth date. Tap the link to the JRE POINT page and login, copy the JRE POINT exchange number and paste it in the Payment Service ID, past the katakana name (no spaces) in Security Code 1, enter the registered birth date into Security Code 2. Enter the last 4 digits of your current iPhone number in the last field.

JRE POINT Info for My Number Card Point registration

(4) After entering and confirming your JRE POINT information you have to enter your My Number Card PIN and read NFC tag again. This completes the process, you should see a green confirmation checkmark.

From here all you need to do is purchase ¥20,000 worth of goods or recharges with Mobile Suica by August 31. The timing and details of the My Number Point bonus into your JRE POINT account should be coming soon. Check the My Number Point page for details.

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WWDC20 iOS 14 Apple Pay Wish List

I already outlined some iOS 14 Apple Pay possibilities regarding AliPay QR payments, UWB Touchless and Secure Element Certificates. iOS 14 AliPay QR support, if it comes, would be a 180 from the Apple Pay Wallet WWDC18 theme of ‘get rid of QR passes and make them NFC’. We’ll see. Here are some wish list items in no particular order, most of them repeats from 2019:

  • Please redo the dumb dark mode driven Wallet transit card UI. All recent Wallet UI tweaks are not about making a better overall Wallet card UI experience and mostly there so it doesn’t suck in dark mode. Sorry, but it still sucks. Honestly, iOS/macOS system wide dark mode is such an overhyped piece of UI crap. I don’t use it anymore.
  • Now that we have Background NFC tag reading across the entire iPhone lineup, can we finally have NFC Tag Apple Pay that Jennifer Bailey unveiled last year.
  • Apple Card does dynamic card stuff, would be nice to have for other Wallet cards too.
  • More built in embedded Secure Element provider support: Calypso, CEPAS, etc.
  • Apple Pay Japan is still missing some important e-money prepaid cards like WAON, nanaco, Edy that have been on Google Pay for some time now, it would be nice to have loyalty prepaid card support for items like DOTOUR Value Card too, and please improve the Apple VAS experience, it’s old dog slow on the store reader.

I’d do a postmortem after WWDC. Enjoy the show.

What to say at checkout in Japan with Apple Pay

Japan has the longest history of mobile payments on a large scale thanks to the early cooperation of NTT Docomo and Sony to create Mobile FeliCa and the Osaifu Keitai standard, all in place long before the EMV contactless standard came together and landed in Apple Pay. The longer history means that the mobile payments landscape is richer and complicated than anywhere else and is growing even more complicated with QR Code payment app choices that have proliferated over the past 2 years.

The addition of Apple Pay and Google Pay confuses things even more. What exactly does one say to the checkout staff? Apple Pay, iD, QUICKPay, or Suica? It comes down to 2 basic factors: the POS checkout system and the skill of the store staff. Suica, iD and QUICPay are pretty much standard for contactless checkout but the ‘Apple Pay’ logo only indicates that contactless payment is available. What you say to the checkout staff or tap on the checkout touchscreen is another matter.

Don’t Say Apple Pay
Visitors to Japan, and even many Japanese expect Apple Pay should do what’s explained on Learn where to use Apple Pay and How to use Apple Pay support pages: (1) say ‘Apple Pay’, double-click the side button for Face ID authentication/rest finger on Touch ID and hold to reader to pay with your default Apple Pay card. The Apple Pay instructions for Japan are different: (2) let the cashier know if you’re paying with Suica, iD, or QUICPay. Why no “say Apple Pay?”

The reason for the difference boils down to Express Transit. Only Japan has Apple Pay Express Transit for store purchases in addition to transit use. No other Apple Pay region has it. So there are 2 ways: say Apple Pay at checkout that evokes Face/Touch ID authentication or say Suica that evokes Express Transit which bypasses Face/Touch ID.

Apple Pay makes everything work seamlessly on the iPhone side thanks to global NFC and NFC switching. However the store reader cannot choose automatically, that’s why you have to say Suica, iD, QUICPay, etc. That’s why Apple Pay uses option (2) for Japan. When Apple Pay Octopus finally launches in Hong Kong, it will be the same deal. Users will have to say Octopus at checkout for Express Transit or tap a separate Octopus only reader.

The Contactless Point Card Difference and Inbound Apple Pay
When checking out at a store with all the pieces in place: full spec POS system, trained staff, EMV, FeliCa, VAS and Apple Pay, it’s like option (1). This is how it works at Lawson convenience stores. The ‘say Apple Pay’ option here is for using PONTA or dPoint contactless reward cards with a convenient single tap operation. The Express Transit catch remains however; saying Apple Pay when Suica is your default Wallet card means you don’t get Express Transit checkout, you get Face/Touch ID authentication Apple Pay. For Express Transit checkout you have to say Suica every time.

There’s also the inbound angle to consider. More stores are adding EMV contactless support and this means visitors can use their Apple Pay cards from home directly. However Apple does not cover inbound use in their support page, only domestic JP options. The problem here is there’s no magic catch-all checkout word like Suica, iD or QUICPay. Do you say Apple Pay, NFC-Pay, credit, or something else?

If the staff hasn’t been properly trained (and be sure to check if they have a ‘trainee’ ID badge, usually a sign of trouble), they can’t understand what payment option you are asking for and match it with the right checkout button. Saying ‘credit’ seems to be the most common usage that works, sometimes ‘NFC Pay’, but Visa wants you to say ‘Visa Touch’, Mastercard wants you to say ‘mastercard contactless’, and so on.

I say blame the mess on selfish card companies that can’t get their act together and come up with a EMV checkout word for the common good. If you get in a jam, pointing at the payment acceptance mark you want to use at checkout is the best course of action. Last but not least, keep in mind that the EMV mark on the reader tap area has nothing to do with what works for POS checkout. Always check the payment acceptance marks.

NFC Pay in action on terminal, note the acceptance marks for Visa and Mastercard contactless, the NFC Pay/EMV logo on the reader tap area does not mean the store accepts NFC Pay

The Transit Platform Argument

A reader asked some very good questions regarding the Suica Transit Platform model and Open Loop:

1) Thinking about this recently – is there a non-techie argument for introducing Suica-type cards in the current day in places with preexisting open-loop infrastructure, wide debit card adoption (even kids), and little overcrowding at ticket gates due to lower volumes?

2) As a tech & transit nerd, I obviously love them, but what could be a convincing, economically sound pitch to a transit operator for creating/adopting an integrated transit&e-money system, given the significant expense and questionable added value?

3) Answers to possible q’s about EMV contactless: 1. 定期券 (commuter passes) & discounts can be tied to card no.; 2. solution for visitors: in-app/paper/multi-trip tickets (like in SG). Obv., Suica has superior privacy & speed, but where speed is not an issue, what’s the killer argument?

I tweeted a response but Twitter is a terrible vehicle for long form discussion. I have many posts on the subject scattered over 2 years, it might be convenient to summarize a few things here.

Any argument for building a Transit Platform or going all in with Open Loop transit comes down to transit company priorities for safe operation, better customer service and long term business goals. A few crucial points to consider.

Whose customer?
A vital point that many people miss in the Open Loop debate is that transit users end up as the bank card customer, not the transit company customer. That might seem like an insignificant difference but ‘owning the customer’ is the whole game and key to growing any kind of business, in our era or any era. Which brings us to the next point because the best way to own the transit customer is…

Cards
Cards are the delivery vehicle for all kinds of service goodies from transit, to points, rewards and all kinds of services. The beauty of a non-bank transit pre-paid card is its flexibility, it can be a simple ticket that customers buy with cash from a station kiosk, it can be linked to an online account with credit cards, extended transit services and beyond. Cards are convenient but not transformative however, until they land on a smartphone…

Digital Wallets
The most powerful card incarnation is the digital wallet transit card with a flexible recharge backend, where any bank card can used, or even cash, and a flexible front-end that can be any flavor of NFC, UWB Touchless or even QR. I say it’s better for the transit operator to decide what payment technology works best for their needs and how to deliver better customer service with new payment technologies, not banks.

Value Capture
Value Capture applies to rail and transit operators with the rights to develop the land around their stations, I include station retail development and operations. Owning a transit + payment card like Suica or Octopus combined with retail opens up a whole new levels of value creation and capture.

It’s also important to remember a few other dynamics, (1) Transit is the golden uptake path for contactless payments, (2) Contactless payments are most successful when a transit payment platform, like Suica, is matched with a mobile wallet platform, like Apple Pay. The key is building better services tied to transit cards that benefit customers and businesses of the entire transit region.

Other Details
Regarding detail questions such as attaching commuter passes to EMV cards and special ticketing, I am no systems design expert but a few things come to mind. First of all we have not seen Open Loop commuter passes because the EMV spec doesn’t store anything locally and there are always security and performance issues to consider when everything is done in the cloud with soft-linked registration to system outside numbers.

The classic catch 22 here is that when the soft-linked number changes on one system, everything attached to it on the other system stops working. This is a constant weakness of the SmartEx and new JR East Shinkansen eTicket service. And what happens if the bank pulls a card mid-transit? These things happen. They are endless headaches when linking to any outside system, for this reason Open Loop sticks with the simple stuff while transit operators keep the more complex stuff in-house. In general the more complicated the fare configuration, the less likely it can be synced with an outside system or be hosted on Open Loop.

For low volume specialty ticketing QR Codes are the easiest step up from paper but they can be printed on ordinary paper for transit users without smartphones and needs to be there. This is why JR East is deploying QR code readers in some gates as they prepare to end mag strip ticketing.

NFC Contactless Passes might sound like a good idea but Apple Pay VAS and Google Pay Smart Tap were designed more for retail in mind, and the transit gate reader system would have to juggle a different protocol that isn’t EMV, FeliCa or MIFARE. It could be done, but judging from my experience of using Apple Pay VAS PONTA and dPOINT cards, QR Codes are faster and likely easier to implement.

In the long run there are no easy solutions. The risk of Open Loop is that it is sold as a general easy ‘fix all’ and mobile solution, which it’s not. This lulls transit operators into complacency instead of improving Closed Loop ticketing systems and extending them to the mobile digital wallets. The bigger and more complex the transit system, the less Open Loop can accomplish.

Relevant Core Posts
The Contactless Payment Turf Wars: Transit Platforms (an intro)
Transit Gate Evolution: Do QR Codes Really Suck for Transit? (a deeper dive into transit cards, gates and technology)
Value Capture and the Ecosystem of Transit Platforms (the bigger picture)
The Japanese Transit Platform Business Model (an outside perspective)

The Self Checkout Barcode Reader Dilemma

Reach out and touch is not something we want to be doing right now. Along with wrangling face masks and Face ID iPhone Apple Pay in the Covid-19 era, we also face another hurdle: self checkout barcode readers. Any volunteers out there who like fondling public plastic? I didn’t think so.

Convenience store self checkout all have the same deal: scan with barcode reader, tap some choices on the checkout touchscreen, scan a rewards card and pay with Apple Pay Suica, etc. The stationary barcode readers at JR East station NewDays are slightly better but you still have the touchscreen to deal with.

Barcode app and plastic variety reward cards were already a pain in the ass before all the fun started and are worse now. Apple VAS and Google Pay Smart Tap for NFC contactless reward cards has been in place for some time but uptake in Japan has been slow and small. So far only 3 contactless NFC point cards exist: Docomo dPOINT, T-Point and PONTA, and only 2 places use them: LAWSON (dPOINT and PONTA) and Tsutaya (T-Point). Part of the problem is that VAS/Smart Tap support depends on 2 factors: the reader and the POS system.

Most modern NFC readers support Apple and Google protocols but POS system support is another matter. Pre-packaged POS system providers like AirPay and J-Mups that are popular with smaller merchants don’t support them yet. This means that only big retailers with deep POS development resources like LAWSON (Mitsubishi Corp group) have added NFC contactless reward card support so far.

Apple Pay Japan supports dPOINT and PONTA cards but there are subtle differences: PONTA card requires Face/Touch ID authentication, dPOINT does not. I have not fully tested dPOINT for point payment but suspect authentication is not required for getting points but required for paying with points. One hopes that with the Covid-19 crisis in full swing, retailers and card empires (JRE Card, etc.) have the incentive to provide customers with the safest contactless experience for both payments and reward cards.

dPoint card can be accessed without Face/Touch ID, PONTA requires authentication