Regardless of whether the CASHLESS rebate is ‘a success’ or not, it will be a tipping point. Already I notice a shift in public perception: if a store is cash only, it definitely looks behind the times in the minds of customers. I think that’s the whole point.
It really doesn’t matter if the CASHLESS Rebate program is a success or a dud. It’s an inflection point tick mark in the mind of Japanese society, the ship of Japan is making a tiny course correction that will veer the vessel off in a very different direction over time. We already have the big changes that the Apple Pay Suica ‘black ship’ brought to Japan since 2016, and that was just the start.
Junya Suzuki, Japan’s top journalist for all thing cashless, posted a new article: The Real Reason for the Cashless Rebate Program. Suzuki san makes the same argument: the Cashless Rebate Program is an inflection point, but with much more detail and depth. It’s a great read and worth a look even just for the pictures and captions.
<reader comment> Regarding the Pixel though, are you sure that the non-Japanese Pixel 3 models even have an eSE <embedded secure element>? I was under the impression that these were HCE <host card emulation> only.
<Felica Dude answer> All the Pixel 3 devices have an eSE, but it might not be able to be enabled by the end-user, and even if it is possible, it won’t be provisioned. A teardown of the global edition Pixel 3 XL (G013C) reveals a <NXP> PN81B.
The NXP PN81 announced in February is all-in-one off the shelf global NFC chip that includes both the frontend NFC A-B-F hardware and the necessary embedded secure element (eSE) + keys for EMV, FeliCa and MIFARE. The odd thing is that the Google Pixel 3 Japanese model apparently doesn’t use the PN81 for FeliCa, and has a separate FeliCa chip sitting in the fingerprint sensor assembly inside the back case.
Just for kicks, I called the iCracked shop and asked about repairing a faulty FeliCa Pixel 3 device. The Pixel 3 repair technician explained that a FeliCa chip replacement was not expensive because it is not on the motherboard, “it’s attached to the fingerprint sensor assembly.” Look carefully at the picture from Keitai Watch piece and you can see the back case with fingerprint sensor assembly that the technician was referring to.
My take is different from FeliCa Dude: the Pixel 3 does not use the PN81 eSE or ‘pie in the sky’ HCE for anything. Instead, Google Pixel 3 uses the Titan M chip Secure Enclave as the virtual eSE for EMV and MIFARE, similar to what Apple does with the A/S Series Secure Enclave. Titan M FeliCa support was either not ready, or Google wanted to test the Japanese market before making a custom hardware commitment.
The point of all this is that Google has laid the foundation for a global NFC Pixel 4 made possible by a custom Google chip. The Titan M is Google’s answer to Apple’s A/S Series Secure Enclave that can host any kind of virtual embedded secure element for any kind of transaction technology, from EMV to PBOC.
I might be wrong, but even if my virtual eSE on Titan M take is incorrect, taken all together with the NXP PN81 development, I think Pixel 4 will finally be the global NFC Android device that many have hoped for.
UPDATE: extensive testing by FeliCa Dude did not support my eSE on Titan theory. The chip in question is the FPC1075 chip interface between the fingerprint sensor and the SPI bus. Pixel 4 is not global NFC, which says it all and knocks everything back to square one: there is no separate FeliCa chip, it’s a NXP PN81 chip all the way. Google hardware support page wording is very misleading, nothing more.
Apple Pay Octopus on iOS 13 this fall puts Pixel 4 and Google Pay in an awkward market position. Pixel 3 is a success in the Japanese market because of the inclusion of a dedicated FeliCa chip in Japanese models. Non-JP Pixel 3 models have a global NFC ready NXP PN81 chip but FeliCa is not activated for some reason, inbound users cannot use Google Pay Suica, or anything else, in Japan.
The question for Pixel 4 is this: will Google Pay use all the features of the NXP PN81 chip, or go with a custom implementation of FeliCa on their own chip for a global NFC device along with an enhanced Google Pay that seamlessly incorporates and builds on Osaifu Keitai software (killing off JP carrier Osaifu-Keitai SIM nonsense for good) instead of simply candy wrapping it, like they do for Pixel 3 JP Google Pay.
If Google goes with the first choice, Google Pay Octopus becomes a future possibility. It would also force other Android smartphone manufacturers to follow suit.
If Google keeps that same Pixel 3 arrangement they have for Pixel 4, a separate hardware model for Japan, Google Pay Octopus becomes a murky proposition. More of the same would be a shame. I hope Google does the smart thing and the right thing: global NFC on all devices is the way to go.
10/16 UPDATE: We have an answer: Pixel 4 is not global NFC, FeliCa support is restricted to JP models, the same story as Pixel 3. Google did the cheap thing again and chose not to buy FeliCa keys for all Pixel 4 models.
Crowd Cast president Takashi Hoshikawa updated his Japan Cashless map introduced back in January, the cacophony of QR Code payment platforms continues to grow. Just like any gold rush, QR will crash and burn at some point. Big players will gobble up the smaller ones and things will settle down.
But something else is going on. There’s a small but important difference, so small that Takashi Hoshikawa is not aware of it: he labeled the FeliCa section in the upper left corner as NFC.
This is the result of using Apple Pay on a global NFC iPhone where all the necessary hardware and software is seamlessly unified. The old plastic card mentality of different walled off technologies: contactless credit card (EMV), transit card (FeliCa, MIFARE), ID card (ISO 7816), NFC A/B or F, etc. slips away and becomes one seamless NFC Wallet in the mind. This mindset is also on display in SearchMan co-founder Naoki Shibata’s recent article on Rakuten Pay Suica: no mention of FeliCa anymore, it’s just one NFC thing.
I look forward to reading Suzuki san’s take, meanwhile here is mine. It has everything to do with the Japan Transit IC card standard and the common eMoney purse that I wrote about in the Apple Card piece.
(The) Japan Transit IC card standard occupies a very special category, 255 transit companies form a common interoperability standard which started from Suica. There are more issued Transit IC cards than people in Japan, everybody has one.
The core group of 9 major cards (Suica, PASMO, ICOCA, TOICA, Kitaka, manaca, SUGOCA, nimoca, HAYAKEN) also share a common prepaid purse: Transit IC eMoney. The national coverage and scale of the major cards transforms Transit IC eMoney into something special found nowhere else: a de facto national prepaid card standard.
Pay close attention to the transit cards that encircle the pink area, with the exception of PiTaPa. These are local rural area transit cards that are currently orphaned from both the common eMoney purse, and transit interoperability.
In April 2021 Super Suica will enlarge the pink area to include these orphaned cards. They will join the common eMoney purse and be compatible with all the pink area cards for transit and purchases. These will also be on Apple Pay Suica, Google Pay Suica and Osaifu Keitai.
That is a huge change in and of itself, but there is another very important aspect. All of these orphaned rural area transit cards are basically cash recharge only. Rural area transit companies operate on shoe string budgets and cannot afford the infrastructure cost to host credit card recharging on the back end even for kiosks.
Super Suica will solve this problem and what better solution than Rakuten Pay Super Suica for all rural Rakuten Pay users, and there are lots of them. This is the major sweet spot that Rakuten and JR East are aiming for. It merges the Rakuten Pay backend with the Super Suica frontend into one convenient service for transit and eMoney purchases while leveraging lucrative Rakuten loyalty points. Rakuten has the best integrated point system in Japan and JR East wants to use it to extend the Suica Platform nationwide. Rakuten Pay and Super Suica belong together, like peanut butter and jelly.