The Return of Touch ID…or maybe not

Gruber finally clocked in on the Face ID vs Touch ID in the face mask era issue in his iPad Air review:

Will this Touch ID sensor in the power button ever make its way to iPhones? I think not…adding Touch ID to the iPhone power button doesn’t really make a lot of sense.

Yes, across the world, many of us are wearing face masks whenever we venture outside the home, and Face ID doesn’t work with masked faces. (Some people report that it does work, sometimes, but it never works for me, and definitely is not officially supported.) But how would a Touch ID sensor on the power button work with an iPhone in a case? Most people use cases, and most cases cover the power button. That’s such a dealbreaker that I think the whole debate might end there. But even putting the issue of button-covering cases aside, how would Touch ID work alongside Face ID?

Practically speaking it would be nice to have Touch ID while wearing a face mask — trust me, I know — but conceptually it seems a bit mushy to have both Touch ID and Face ID on the same device. I think we’re more likely to see a better Face ID system that can identify us while we wear masks covering our mouths and noses than iPhones that have Touch ID sensors on the power button. If we, as humans, can recognize people we know while they’re wearing face masks, computers can do it too.

Gruber is pretty sensible up to this point but then adds:

Touch ID that somehow works through the display, not the power button — that seems like an option worth pursuing, conceptual mushiness of dual biometric systems be damned.

Conceptual mush. A reader quipped: “Just an incredible coincidence that a (dual biometric) thing Apple could have theoretically done today, but did not, would have been bad, but a thing he (Gruber) thinks they are likely to do in the future will be good.”

It’s too bad Gruber has never experienced Apple Pay Suica Express Transit, it would give him a better perspective and clarity on how big and important the Face ID vs Touch ID issue is for many iPhone users in Asian markets. As a regular Tokyo commuter I’m fortunate that Apple Pay Express Transit Suica makes Apple Pay on a Face ID iPhone tolerable when wearing a face mask, but the majority of Apple Pay users in Japan do the face mask passcode move.

Apple Pay launched after Touch ID for a reason: Apple Pay + Face ID/Touch ID is one complete thing. Apple Pay with passcodes is far more frustrating than a regular passcode unlock because it short circuits the entire Apple Pay experience and catches you at the worst moment when you least expect it, usually at checkout with the wrong Wallet card selected and people behind you. It’s so bad you want to go back to plastic.

There are no easy choices. An iPhone that does Face ID and Touch ID (in screen or button) would be expensive, risky, problematic and juggling both technologies will very likely suck UI performance-wise. We don’t need a repeat of the 3D Touch misstep because of cost and/or not panning out because Apple didn’t think things through. Apple needs to see Face ID through, but developing it will take time. And even so there is a large installed base of Face ID devices now that will never work with face masks, users are going to be dealing with that issue for a long time.

The real interesting thing for me is what Apple is telling customers on its own web pages. For example the Apple Pay Japan page for PASMO and Suica only shows Touch ID. It used to show Face ID too but that was removed with the Apple Pay PASMO launch refresh. Apple fully recognizes that Face ID is a marketing obstacle for Apple Pay in Japan.

Computers already recognize face masks, NEC face recognition technology does it very well. So the bottom line is…until Apple develops and delivers its own insanely great Face ID with x-ray vision, or licenses NEC face recognition technology, Apple Pay on Apple Watch is the way to go…regardless of the outcome.

Road to Super Suica: 2 in 1 shared infrastructure and mobile transit card expansion update

The JR West Osaka Expo 2025 transit vision looks exactly like the Super Suica one

The October 21 announcement from JR East-Hachinohe City-Northern Iwate Transportation is the 3rd Super Suica local transit card and follows earlier Super Suica local transit card announcements for Utsunomiya Light Rail and Iwate Transit Co. Ltd. These fit neatly into the narrow definition of Super Suica as a local area ‘2 in 1’ transit card within the JR East region that hosts different transit company commute plans and reward points on a single card. New FeliCa chips announced in September have new features like ‘Extended Overlap Service’ to support the ‘2 in 1’ model.

The real test of Super Suica is the wider definition and how it plays with both private transit companies inside and outside of the JR East (JRE) region, JR Group companies and what infrastructure resources JRE is sharing to eliminate needless duplication and save costs for all players. In the COVID era of constrained public travel, reducing costs while maintaining good service is more important than ever.

On the mobile front I think we can safely say that Mobile PASMO is an unannounced joint effort between JR East and PASMO Association. Mobile PASMO service and software is Mobile Suica dressed up in PASMO colors, the penguin character swapped out for a robot. The JR West announcement of Mobile ICOCA one week after the Apple Pay PASMO launch is no coincidence. The Super Suica mobile template is in place and road tested, PASMO and ICOCOA are the first 2 customers.

Who’s next? Junya Suzuki pointed out that Suica and PASMO together account for 80% of Japanese transit card issue, ICOCA added in makes that 90%. The next largest market and logical choice is manaca, the Nagoya area equivalent of PASMO. Forget about the Kansai area PiTaPa, the credit card as transit card concept was a bust and will likely never go mobile unless it’s repositioned as just a credit card. JR Central’s TOICA has deep pockets, and it’s said that TOICA runs on Suica servers, but JR Central has a sibling rivalry thing with JRE that might get in the way.

I’m taking a wild guess but I think manaca will be the next mobile service announcement with the Kyushu area transit cards (SUGOCA and nimoca) following soon after. The next development to keep an eye on is the ‘2 in 1’ Super Suica local transit card model and if other major JR Group members offer a rebranded version of it in their respective transit regions.

From a western perspective people wonder ‘why not just have one national transit card and be done with all this nonsense’. A national transit card has been discussed by various Japanese governments from time to time, and gone nowhere. The shared infrastructure Super Suica model that aims to lift all boats certainly plays more to the traditional Japanese business mindset. In these challenging times that can be a good thing.

We all float

The float is essentially double-counted money: a paid sum which, due to delays in processing, appears simultaneously in the accounts of the payer and the payee.

Individuals and companies alike can use float to their advantage, gaining time or earning interest before payment clears their bank.

Investopedia

One of the great tragedies of the NYC MTA is that it’s a too-much-public-not-enough-private transit cash pipe with too much exposure to local NY politics. NYT has a wonderful video on YouTube that explains the critical MTA flaw: politicians cleverly borrow against the MTA cash pipe for pork barrel projects that have little or nothing to do with MTA, but leave it highly leveraged and helpless to fix it’s own problems or invest in infrastructure.

Think of what MTA could really do if it was effectively protected from political interference, with full control of its own money and a Suica-like transit+payment empire, free to use the float of all those MetroCards soon to be OMNY transit cards.

One of the many things never discussed about open loop is who uses the float, but banks hold the money until the user account is settled with the transit company and they take a cut of the fare. It doesn’t take much imagination to see why banks and credit card companies really like promoting open loop.

Closed loop Japanese transit companies don’t talk about the float either but Japan IC Transit cards are like micro bank accounts with unused e-money balance and plastic card deposits sitting in all those Suica, PASMO, ICOCOA, manaca, etc. Japanese transit companies love to put all those micro bank accounts to work earning interest.

Japanese transit companies and Hong Kong Octopus have built those micro bank account transit cards into a very nice transit payment platform business that combines transit, payments and other services attached to the card which means there’s a lot more stored fare floating around than plain old transit-only cards. The addition of digital wallets like Apple Pay Suica and Apple Pay Octopus means there’s ever more e-money moving through those cards with short term parking…more float for transit companies to earn interest.

It’s a wonder why more transit companies haven’t followed the transit payment platform model to capture more business in the digital wallet era, but it’s testament to how little control they have over their own business destiny. Next time when you hear the praises of open loop over closed loop, remember to think about who’s floating in that business arrangement…and who’s not.

2 NFC Antennas for iPhone 12

New iPhone specs are always fun to compare and analyze. On the NFC front we have a few changes in iPhone 12. NFC is now listed twice, first in the Cellular and Wireless section as “NFC with reader mode,” and again the MacSafe section as “Accessory Identification NFC.”

The keynote also shows NFC twice: once using iPhone 12 to unlock a door and again in the MagSafe section as a ‘single-turn coil NFC.’ So there we have it: the good old Apple Pay NFC antenna with embedded Secure Element for transactions where it has always been on the top of iPhone, and a new MagSafe NFC antenna for tag reading MagSafe accessories on the back that likely doesn’t need the secure element and might incorporate the NFC Forum Wireless Charging Specification. Hopefully Apple will release MagSafe developer documentation later on so we can find out. Some users wondered if the new MacSafe NFC would interfere with 3rd party card cases and using Apple Pay, but this doesn’t seem to be the case, no pun intended.

The NFC Forum Specification includes wireless charging but it’s not clear if MagSafe includes it.

What about ‘NFC with reader mode’? I suspect this is just a new name for Background NFC tag reading which was listed in previous models but not in the iPhone 12/12 Pro specs. Another welcome addition is the return of Suica (removed in the iPhone SE Apple Pay section) along with the just released Apple Pay PASMO mention in the iPhone 12 JP Apple Pay specs.

Apple Pay PASMO launch day behind the scenes

「モバイルPASMO」の実現までに13年もの歳月がかかった裏事情, CNET

The every reliable Junya Suzuki has posted exactly what I hoped he would: nitty gritty launch day event details. A quick rundown with commentary if you can’t read his original Japanese post.

Big Apple Presence
A large number of Apple Japan folks were on hand at the October 6 Apple Pay PASMO press event with media invited from America. Apple Pay VP Jennifer Bailey also checked in with a message via video link. Highly unusual given that a single person is what Apple usually fields for recent Suica announcements like the Apple Pay MIZUHO Suica. This is big in itself but it’s helpful to know some basic Transit IC card market share numbers. Suica and PASMO are #1 and #2, combined they represent 80% of all transit IC card issue. ICOCA is #3, manaca is #4.

The addition of Apple Pay PASMO is why Suzuki san now refers to Tokyo as a “キャッシュレス経済圏 “Cashless Economy Zone”. The Suica and PASMO zones blur and become one thing in a digital wallet. Mobile Suica membership passed 10 million users last month, total Suica issue (plastic and mobile) is about 85 million.

Out of the Suica issue numbers Suzuki san pulls an important growth figure: the 2020 Suica mobile to plastic ratio is 12%, at the 2016 Apple Pay Suica launch the ratio was 7%. That growth is the power of Apple Pay in action, and also Google Pay. The mobile growth curve will accelerate with the addition of Garmin Pay Suica and wena 3 Suica. That’s why Apple Pay PASMO is a big deal, not only for Tokyo, but for PASMO and Apple too. It is this shift that Suzuki san says finally drove PASMO to commit to delivering a mobile service after years of dithering.

But what about the other transit card economic zones and how will they be integrated into the mobile mix? For ICOCA the only question remaining is ‘when’ Mobile ICOCA arrives, ‘if’ is no longer an option. ICOCA is the Suica of the Kansai area, manaca is the Suica of Aichi. Osaka and Nagoya don’t want to be left behind the Tokyo cashless economy zone.

My own take outlined in Hello Apple Pay PASMO and Road to Super Suica is that PASMO is a dry run for other mobile cards. The template is ready to roll, right down to the recycled but sleeker modernized Suica App stuff in PASMO App.