Garmin Pay Suica aka Google Pay on iOS

Garmin Pay Suica went live May 21, effectively breaking the 4 year Apple Watch/Apple Pay Suica monopoly. As any Apple Watch user in Tokyo will tell you, Apple Pay Suica is the killer Apple Watch app. The real secret of course is Express Transit payments. Even now I get the occasional oh and ah from store staff when I hold Apple Watch up to the reader. They really appreciate the speed and social distance. So do I.

Since Garmin only does smartwatches, there are inherent limitations and big differences from Apple Pay Suica: (1) there is no way to transfer a plastic Suica to Gamin Pay, users have to create an account and a new virtual Garmin Pay Suica card, (2) Garmin Pay Suica does not support Suica Commuter Passes, (3) Garmin Pay Suica can only be recharged with Google Pay, (4) Garmin Pay Suica is limited to Japanese Garmin models, it is not global NFC like iPhone and Apple Watch.

Outside of that Garmin Pay Suica is a regular Suica with ‘Rapid Pass’ instead of Express Transit, different name, same thing. It can be registered for SmartEX and Ekinet Shinkansen eTicket travel. iOS users setup and recharge via the Garmin Connect Mobile app.

Garmin Pay Suica limitations limit its appeal for iPhone users who already have the full range of Mobile Suica service on Apple Watch. It’s a boon for Android users who have lusted after a Suica smartwatch. It very weird that it has taken 4 years for Android based device makers to even attempt matching the killer combo of Apple Watch and Apple Pay Suica. I hope Garmin works to improve the service and remove the limitations. Android users would really appreciate having the full Mobile Suica experience on a smartwatch.

UPDATE: there’s some gray area whether all Asian models support Suica or just the devices sold in Japan. I’ll update any discoveries here. Other limitations like Suica Commuter passes are also interesting and suspect they shed some light on the Google Pay~Osaifu Keitai relationship. In many ways Google Pay Suica is a UI skin on top of the Osaifu Keitai stack. In the case of Garmin Pay, no Osaifu Keitai stack means no Commuter Pass support even though it depends on Google Pay for recharge.

Catching up with Apple Watch Suica

Like most people staying at home I’m trying to put downtime to good use, catching up on review videos. I came across the Apple Watch Journal channel on YouTube and highly recommend it to any Apple Watch user with some Japanese ability. It covers all kinds of tips and functions with a keen focus on smart efficient use. The delivery is tight, simple, well organized and wonderfully narrated. Videos covering Japan only services like Suica, Line and dPoint are well worth the time investment.

The standout is the Apple Watch Suica video, rightly called ‘the killer Apple Watch app.’ I cannot agree more especially in these COVID-19 social distancing times. Suica on Apple Watch is stress free without the hassle of using Face ID Apple Pay with face masks. I even learned a few new things like Suica auto charge works without a network connection. It’s hard to believe that after all these years the competition has yet to match Suica on Apple Watch. Apple Watch Octopus will be a killer app for Hong Kong users when it arrives there, hopefully soon. The 12 minute video covers:

0:46 Apple Watch版「Suica」の基本的な使い方 (Apple Watch Suica Basics)
2:27 Apple WatchとiPhoneで併用する際の注意点 (Gotchas using Suica on both iPhone/Apple Watch)
4:16 Apple Watchがロック状態、Suicaは使える?(Using Suica when Apple Watch is off wrist)
6:46 Suicaは画面側でタッチしなくても使える!(Apple Watch Suica and wrist positions)
7:45 Apple Watch単体(オフライン)でも使える!(Apple Watch Suica works without network)
8:45 JR東日本の新型改札、Apple Watchの使い勝手は?(Using Apple Watch Suica on the new JR gate)
11:08 Apple Watchを「右手」で使う方法 (Using Apple Watch on the right wrist)

The new JR gate section is particularly interesting and fully covers what is sure to be a sore point with many left wrist Apple Watch users: the reader is on the right hand side and the slanted position makes it impossible to comfortably reach over with the left wrist. After running through many left wrist use cases, the narrator simply concludes, ‘let’s learn to wear Apple Watch on right wrist, it’s not that hard,’ and devotes the last section with some right wrist tips.

Another video does an excellent job of covering the recent Wallet addition of dPoint contactless point card. All the Lawson POS systems options are explained with some very helpful tips dealing with dPoint and PONTA point cards on Apple Pay Apple Watch.

UPDATE
For the very first time ever Apple Watch Suica could be in for some serious competition next month with the planned release of Garmin Pay Suica. If you need any proof that Suica is the smartwatch killer app for Japan, this is it. Any smartwatch without it is a nonstarter. It’s an encouraging sign that Garmin is advertising Google Pay for the Garmin Suica recharge backend for linked Android devices and suggests they might have larger FeliCa ambitions than Japan. We’ll see if the competition is truly catching up to Apple Watch Suica in May.

What will Apple do about the 10% iPhone sales drop in Japan?

The writing was on the wall when Docomo dropped the price of iPhone XR shortly after it went on sale. Shortly after that Tim Cook explained the Japanese market situation in the 1Q 2019 earnings call:

In Japan, iPhone purchases were traditionally subsidized, bundled with carrier contracts. Today, local regulations have significantly restricted those subsidies as well as related competition. We estimate less than half of iPhones sold in Japan in Q1 this year were sold via subsidy.

One year later Apple announced record earnings for Q1 2020 but Japan iPhone sales with down 10% y/y. Luca Maestri only explained the situation at the end of the earnings call, answering the very last analyst question:

So Japan was down 10 percent during the December quarter. It was primarily due to iPhone performance, which was challenged because there were some regulatory changes that took effect on the 1st of October, where essentially the regulators decoupled the mobile phone pricing from the two year contracts and they’re capping the maximum amount of carrier discounts that can can be made. At the same time, I would say that within a more difficult macro environment, iPhone did incredibly well during the quarter. Six of the top seven selling smartphone models in Japan during the December quarter were iPhones. So it was a very strong performance by iPhone in a difficult environment. Also in Japan, we had very strong double digit growth from services, stronger than company average, and very strong double digit growth in wearables, also stronger than company average. So we feel very good. You know, Japan is is a country where historically we’ve had great success. The customers are very loyal and very engaged. And we have a very strong position there and we feel we have a very good momentum.

Six Colors

I don’t think Japanese iPhone customers will stay loyal and engaged if Apple sticks with the same old sales strategies now that the era of carrier bundling is over. A new approach is needed. Maestri alluded to one clear advantage remaining for Apple in the Japanese market: Apple Pay Suica on Apple Watch, an advantage no other device manufacturer has matched yet. That advantage along with the golden opportunity of the Tokyo Olympics this year are market opportunities which Apple is not taking advantage of.

I said it before: Apple Pay Suica on global NFC iPhone/Apple Watch is a great way for inbound visitors to get around town during the Tokyo Olympic games this summer and Google Pay Suica is still not available for inbound Android users. It’s weird Apple isn’t marketing that.

Apple adds support for contactless student ID cards in Wallet

Campus-Apple-Pay_Duke-entrance_10022018

Apple hit the on switch for contactless student ID cards today. The press release has nice photos but is vague. There is much more detail on the Apple support doc Use student ID cards in Wallet on your iPhone or Apple Watch.

The most interesting detail is the device eligibility: iPhone 6 or iPhone 6 Plus and later, Apple Watch Series 1 and later and Express Mode isn’t available on iPhone 6 or iPhone 6 Plus. NFC-A/B, definitely not FeliCa powered as some sources were saying and could be MIFARE. It looks like Blackboard has something else up their sleeve for middleware but I’m willing to bet you that Student ID Express card performance is slower than Apple Pay Suica Express Card with power reserve even on the same iPhone XS/XR device. The Blackboard IC card format is both FeliCa and MIFARE but the eligible device list suggests student ID cards are PassKit NFC Certificate powered MIFARE Host Card Emulation (HCE).

The rest of the support doc details confirm the cards are stored value (SV) with Express Mode and students can recharge them with Apple Pay, a credit/debit card in the eAccounts app or cash at the “school’s self-service machines”. In other words it’s just like Suica App and Apple Pay Suica for door locks instead of transit.

Update
There is conflicting information about the Blackboard technology used for Apple contactless student ID cards. The Express Card function is exactly what FeliCa offers and Blackboard supports. On the hardware side iPhone 6/6 Plus and later all have NFC A-B-F chips as do Blackboard NFC readers.

Update 2
The Blackboard IC card format uses both FeliCa and MIFARE and Blackboard has been migrating IC cards to MIFARE. The implementation appears to be PASSKit NFC Certificate powered card MIFARE card emulation. Apple has not publicly announced MIFARE support but it is the only technology compatible with Blackboard IC card formats that could power the express card features of iOS 12 student ID cards across all eligible devices.