It all started today, July 1, 2004, when NTT Docomo launched the iMode FeliCa mobile wallet, called Osaifu Keitai in Japanese. It was the world’s first mobile payment platform, a tremendous achievement and forerunner to the Apple Pay and Google Pay services we have today. To celebrate the anniversary Docomo has lined up a bunch of point campaigns for all the Osaifu Keitai payment networks: Mobile Suica, iD, QUICPay, WAON, nanaco, Edy. Unfortunately Apple Pay users are only eligible for iD and QUICPay (details will be available later).
Docomo also has a nifty anniversary page highlighting all the Osaifu Keitai payment networks, when you tap or click the payment icon it plays the feedback sound you hear at the register. The Suica sound is the original one we heard way back in 2006, which you don’t hear anymore. It’s a fun way to celebrate the trailblazing mobile payment platform that Docomo and Sony invented.
I love coffee. So do Japanese. In Suginami City Tokyo, coffee shops, cafes and kissaten are always packed with people spending money who don’t like Starbucks. No doubt you know that Starbucks continues to stonewall Apple Pay here, but there is a nice end-around play to win that game. Did you see today’s news announcements from Docomo and Doutor that starting June 3 Docomo d POINT rewards will be given and accepted at all Doutor Coffee shops? That looks boring but believe me, it’s huge.
With those cards in Wallet, lots people who have not used Apple Pay in Japan would start using Apple Pay. Kind of like Apple Pay Suica for coffee lovers who don’t use Suica. It would be cool and cutting edge for customers to earn d POINT rewards at Dotour Coffee Shops just by paying with Apple Pay, again just like earning PONTA rewards at Lawson. But reward points for drinking coffee is the real incentive, and the payoff. I guarantee it would strengthen your hand with Starbucks in a big way, and help Docomo sell more iPhones. That would make both Docomo and Tim very happy.
The writing has been on the wall for over a year now, and sluggish iPhone XR sales only confirmed the fact, that iPhone carrier subsidies in Japan which have defined the industry since 2008, were dying. Today’s Docomo announcement unveiled new plans that discard all the complexity of previous plans like ‘FOMA’, ‘Xi’ and ‘docomo with’ all of which disappear on May 31, with 2 simple choices:
Giga-Ho: ¥4,980 a month for 30GB
Giga-Lite: ¥1,980 a month for 1GB with other date tiers available, 3GB@3,980, 5GB@4,980, 7GB@5,980
Docomo customers can apply for the plans from the Docomo web site or a Docomo shop starting May 22, service starts June 1. There are many configurations and new options available, from home internet bundle discounts to new family data sharing. And it looks like tethering fees are gone. Depending on the configuration savings can be as large as 40% compared to previous plans.
At first glance customers will still need to do some homework via the online cost simulator (something that Japanese love to do), or visit the nearest Docomo shop to find the configuration that fits your needs while giving the best discount. This is just part 1 of the continuing saga of data plans without subsidies. At the end of the announcement Docomo said stay tuned for more. KDDI au and SoftBank should be announcing new plans soon, and we’ll get Docomo part 2 when the new iPhones come out this fall.
All Japanese carriers offer free SIM Lock unlocking service 100 days after purchase or 100 days after a previous SIM Lock unlock of the same contract mobile number, which ever comes first. Day 1 iPhone XS users are just past the 100 day mark, I successfully unlocked my Docomo iPhone XS SIM today. You can do this at your local carrier store for ¥3,000 but it’s free when you do it online via My docomo, My SoftBank, My au. Have your iPhone IMEI number ready: go to Settings > General > About and scroll down to the IMEI number to copy it. Be sure to remove any spaces between number groups so it is one unbroken number string.
It’s very strange that the JCB QUICPay network has gained the most benefit from the Apple Pay makeover of the Japanese contactless payments market instead of the Docomo iD network. Docomo invented the Osaifu-Keitai standard with Sony in 2004 and was the natural favorite, but iD has only treaded water while JCB has seen steady gains in QUICPay issue cards, customers and transactions.
Docomo iD problems boil down to bad blood between Docomo and Sumitomo Mitsui Banking Corporation (SMBC) who issue and manage Docomo d-CARDs and help run the iD payment network. Up until 2016 VISA d-CARD was king. Then something happened. Things got so bad between the 2 companies that Docomo removed all VISA branding from their website and Docomo stores strongly urge new customers to create a Mastercard d-CARD not a VISA d-CARD. VISA might seem like the target here but SMBC, the first Japanese bank to issue VISA back in 1968, are the real power behind the VISA throne in Japan, and the real target for Docomo ire.
First of all Docomo and SMBC agree to start all over again to rebuild the d-CARD business and develop new services. <Nice boilerplate stuff with no promises and no deadline for delivering anything>.
Sumitomo Mitsui Financial Group will buy back all outstanding shares of Sumitomo Mitsui Card Co. (34% of the company) from NTT Docomo by April 1, 2019. <Why does Docomo want out of the credit card business? Do they think that credit card industry pricing and fee structures are unsustainable in the face of ubiquitous contactless payments of all flavors, online banking and ever more competition? Do they think the credit card industry is going to have to live on far less and have to aggressively restructure? Or is it something else like getting out of the 2 year contract subsidizing business? Inquiring minds want to know.>
Docomo NTT and SMBC will work together to develop and deliver more cashless solutions and expand the iD network. <That sounds nice but what does it really mean? Is VISA finally joining the Apple Pay Japan party? Is Google Pay support coming on iD?>
Like all cold war detente agreements, the proof will be in the pudding.