Apple Pay Octopus close to launch…or maybe not

In the on, off, on again Octopus Cards Limited relationship with Apple Pay, predicting a service launch is risky business. The last reliable statement was from Octopus Cards Limited CEO Sunny Cheung on September 19 saying that Apple Pay Octopus would not launch on iOS 13 release day, but would “start as soon as possible within the year.”

Take it for what it is worth but a reliable source tweeted the following leak from beta testers to me today:

According to an internal note leaked by beta testers, Octopus Customer Service has yet to receive training for Octopus on Apple Pay, and they are advised not to call the hotline before the project goes online officially. The note was released on 11/10. However, a subsequent email sent to beta testers says that the official launch is coming “very soon”. Considering that the project has been “coming soon” since July, I’m not sure what to make of this “very soon” wording.

I also hear from other sources that OCL is cracking down on Apple Pay Octopus beta test leaks by limiting access and shutting out some testers, unsuccessfully I might add. There have been so many leaks the only thing we don’t know is the launch date. The beta tester crackdown may be OCL’s way of keeping the launch date under wraps so that the press event launch still has a surprise or two.

To use a Donald Rumsfeldian turn of phrase, do we have a known known or an unknown known? Well, we do have iOS 13.2 due on October 30 but at this point any iOS point release has nothing to do with an Apple Pay Octopus launch. The leak is almost 2 weeks old, hopefully Octopus Customer Service staff is being trained for the launch. Other than that all we have is… a known unknown.

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Pixel 4 goes cheap instead of deep

As I tweeted earlier today, the updated Pixel Phone Help hardware pages tell the whole story: if you purchased your Pixel 4, 3a or 3 phone in Japan, a FeliCa chip is located in the same area as the NFC.

This is a little misleading because as FeliCa Dude pointed out in tweets, the Pixel 3 uses the global NFC PN81B ‘all in one chip’ from NXP. There is no separate ‘FeliCa chip’:

All the Pixel 3 devices have an eSE…A teardown of the global edition Pixel 3 XL (G013C) reveals a <NXP> PN81B.

FeliCa Dude

Pixel 4 teardowns will certainly reveal a PN81B or similar all in one NFC chip from NXP. Google could have gone global NFC with Pixel 4 and given Android users everywhere access to Google Pay Suica. Unfortunately Google went cheap instead of deep, sticking with the same Pixel 3 policy of only buying FeliCa keys for JP Pixel models.

Why is Google turning off FeliCa on Pixel models outside of Japan? I doubt it is a licensing restriction because the whole point of NXP PN81 is having all the global NFC licensing pieces, NFC A-B-F/EMV/FeliCa/MIFARE, all on one chip, all ready to go. It could have something to do with Google Pay Japan. For Apple Pay Japan, Apple licensed all the necessary technology and built it into their own Apple Pay.

Instead of that approach Google Pay Japan is a kind of candy wrapper around the existing ‘Osaifu Keitai’ software from Docomo and FeliCa Networks, and all of the existing Osaifu Keitai apps from Mobile Suica to iD to QUICPay. That’s why having a ‘Osaifu Keitai’ Android device is a requirement for using Google Pay Japan. Perhaps Google is content in candy wrapping things instead of retooling it all as basic Google Pay functionality and letting Android OEMs benefit from that.

Whatever the reason, the moral of this story is that Google Pay Suica will not be a transit option for inbound Android users during the 2020 Tokyo Olympics. Unfortunately, the Android equivalent of the global NFC iPhone has yet to appear.

The Future of Cashless Payments is Now

Some people look at Japan and see a crazy mess of cashless payment options: credit cards, iD, QUICPay, Suica, QR Code players like PayPay and Line Pay, all vying for customer wallet space. ‘It’s a shame,’ they say, ‘In our country we have it all worked out with EMV contactless bank cards that do everything.’

I’ve got news for those people, the mess they are seeing in Japan is the future, it just hasn’t come to their country yet. It’s the revolution of payments on smartphones that started with digital wallets like Apple Pay, Google Pay, etc. but it’s sure not ending there, the number of payment options is only going to grow. Get used to it.

The one size fits all thinking of the plastic card era is dead. Some people think it still lives on in digital wallets, but it’s dead. The future belongs to nimble players who mix and match the best payment technologies for the job at hand and offer customers better services along with it.

The so called ‘FeliCa failure’ curse is actually a kind of blessing: the market payment technology fragmentation gave new players a footing to try different payment methods. Diversity isn’t a weakness, it’s a strength. The diversity of Japanese cashless payment options is the result of its longer history of mobile payments.

That is what smart devices, digital wallets and payment apps do: they erode the old ways and bring fragmentation along with new opportunities. There will be cycles of expansion and consolidation but one size fits all will never come back. Call it cutting edge or call it stupid, like it or not, the cashless mess is coming your way.

Tokyo Cashless 2020: Blame the Japan Cashless Payments mess on VISA and EMVCo, not FeliCa

1️⃣ Dear JR East, we need a new Suica Charge App
2️⃣ Consumption tax relief with the CASHLESS rebate program
3️⃣ Are Apple Maps and Siri really Apple Pay level ready for the Tokyo Olympics?
4️⃣ > Blame the Japan Cashless Payments mess on VISA and EMVCo, not FeliCa

Tokyo Cashless 2020 is a series covering all things cashless as Japan gears up for the big event. If there is a topic that you’d like covered tweet me @Kanjo


Japanese journalist Akio Iwata just published a piece explaining why VISA has not signed with Apple Pay in Japan. It is paywalled and I have not read it, but Japanese readers noticed similar points in my earlier piece Why Visa refuses to join Apple Pay Japan and tweeted about it. The subject is timely and worth visiting again after the events of the past year.

Some western business journalists and industry pundits look at the Japanese payments market and write about failure: the failure of FeliCa to be universally accepted, the failure of Japanese society to use cashless payments instead of hard cash. It’s a kind of cut and paste narrative construct journalism that you see too much of these days, like the recent Financial Times piece, or worse the NFC TIMES. The narrative is persuasive enough to blind some Japanese journalists as well.

This kind of reporting plays to the expectations of a certain readership, but it completely fails to capture or explain the massive changes happening in Japan right now, set in motion by the arrival of Apple Pay in late 2016. The bulk of the cut and paste argument is that FeliCa failed to take off in Japan and because Japan failed to switch to the EMV ‘world standard’, that’s why we have the current messy situation. End of story. I don’t buy this argument at all.

FeliCa was around long before the EMVCo consortium got it’s NFC act together in the early 2000s. NFC-A is Philips, NFC-B is Motorola, NFC-F is Sony. The ISO/IEC 14443 standard was supposed to include NFC-F but the ISO ultimately decided not to include it. EMVCo created the EMV contactless standard on ISO/IEC 14443 NFC A/B.

With lots of help from JR East, NFC-F was added to the ISO/IEC 10373-6 and GSMA/GCF (Global Certification Forum) TS. 26, TS. 27 specifications. From April 2017 GCF certification for all NFC mobile devices requires NFC-A, NFC-B and NFC-F support.

It is this later development, and especially the fruit of that development, Apple Pay Suica, that I believe is unacceptable to VISA and by extension EMVCo. VISA cooperates with Apple Pay in other countries because it promotes EMV, VISA refuses to cooperate with Apple Pay in Japan because it promotes FeliCa. Instead of promoting bank card use and new services VISA is promoting technology.

I have long suspected that VISA simply does not want anything to do with Apple’s support of the Global NFC standard put in place by the NFC Forum and GSMA/GCF in 2017. It’s not only Apple…VISA refuses to support dual mode (EMV/FeliCa) Docomo iD/NFC for Android Osaifu Keitai users abroad which Mastercard, American Express and JCB do. VISA simply wants to bide time until NFC Pay/EMV contactless support in Japan is everywhere and then simply ignore FeliCa (NFC-F) all together…

Unfortunately this strategy has only accomplished one thing: it provided an opening for QR Code payment system players…

Why Visa refuses to join Apple Pay Japan

My argument is simple. The VISA and EMVCo mindset is stuck in the one size fits all single mode plastic card era. This is easy to understand as the plastic card issuing business is a very lucrative one.

But like all things there is a downside: instead of embracing the full promise of global NFC digital wallets that can match the best NFC technology for the job with multiple mode cards that do everything and ‘just work’ everywhere, we have the contactless payment turf wars which are really just plastic era fighting moved to a digital arena.

Instead of pursuing the advantages of digital wallets that merge the best of native transit cards on the front end with the best of bank cards on the back end, where they perfectly complement each other, we have bank cards fighting to be everything, which they are not and will never be. This is why Apple markets Apple Card as ‘a new kind of credit card, created by Apple, not a bank.’ It’s the reason why Apple Card is Mastercard brand, not VISA.

In Japan specifically we have VISA refusing to join Apple Pay Japan and for the most part Google Pay, and VISA Japan key player Sumitomo Mitsui fighting on and off with Mobile FeliCa key player Docomo. And the result? None of this nonsense helped strengthen VISA Japan’s market position one bit. On the other hand VISA’s arrogance pulled all the other card companies down with it and provided a huge opening for the Japanese QR Code players like PayPay.

When I wrote Why Visa refuses to join Apple Pay Japan the frenzy of Japanese QR Code payments was just getting underway. Over a year later I think this conclusion is stronger than ever and the only one that explains the reality of the current market. VISA may like to think that the Tokyo Olympics is the last great opportunity to finally kill FeliCa. That’s not going to happen.

Only by setting aside the past and embracing the multimode digital future with forward looking cooperation, can VISA (and by extension EMVCo) help bring order to the payments chaos of the Japanese market. Only cooperation can deliver the promise of cashless payments to Japan, and strengthen the long term market opportunities for all players.

The Global NFC + Background Tag Reading iPhone SE2

The on again, off again iPhone SE2 is on again now that Delphic oracle analyst Ming-Chi Kuo has checked in. As I wrote before, the iPhone/Apple Watch 2019 lineup is now entirely global NFC. The price cuts are great but there needs to be a lower priced entry model below the iPhone XR with:

  • NFC background tag reading in place for new Apple Pay features going forward.
  • Touch ID that removes the Face ID face mask problem in markets like China and Japan. This issue is a constant blind spot in the western tech press ‘In-screen Touch ID vs Face ID’ debate.
  • A13 Bionic for superior battery performance and Express Card with power reserve
  • Cheaper battery friendly Haptic Touch instead of the more expensive battery hungry iPhone 8 3D Touch.

There kind of device is perfect for the Japan and Hong Kong markets:

The rumored A12 chip iPhone SE2 may well be pie in the sky, but that doesn’t mean that there isn’t market appeal for an inexpensive global NFC iPhone for places like Japan and Hong Kong. Those markets have highly integrated transit networks coupled with highly evolved transit card systems like Suica and Octopus. With both of these on Apple Pay there’s a good opening for a small SE size inexpensive global NFC iPhone, it would do very well.

I imagine the iPhone SE2 could do well in a lot of markets.