Tag: iOS 14 Wallet

Apple Pay Contactless Adoption Outlook 4Q 2020

MacRumors posted an interesting comment Tim Cook made in the 4Q 2020 earnings call

As you can imagine in this environment, people are less wont to hand over a card. Contactless payment has taken on a different level of adoption and I don’t think we’ll go back. The United States has been lagging in contactless payments and I think the pandemic may very well put the U.S. on a different trajectory there. We are very bullish on this area and there are more things that Apple can do in this space so this is an area of great interest to us.

What exactly are the ‘more things that Apple can do in this space’ Tim is talking about? There are two iOS 14 Apple Pay features that haven’t arrived yet: App Clips and Apple Pay QR Code Payments.

App Clips are ‘here’ but you wouldn’t know it. An October 22 tweet announced 2 Tokyo coffee shops offering App Clips, the debut locations for Japan. NFCW reports ExxonMobil’s ‘point and pay’ App Clip with App Clip Code stickers at USA gas pumps though only the NFC tag part is working. ExxonMobil rolled those out the same time as Japan. Ken Nishimura of Coral Capital has an interestingly detailed write up of the Tokyo App Clips launch with a screen recoding of the App Clips order process.

We are cashless…App Clips at Tailored Cafe but the nifty Apple-designed App Clip Code stickers aren’t available in Japan yet (Coral Capital blog)

The problem is that the Apple-designed App Clip Codes aren’t fully ready yet and require a future iOS 14 update (iOS 14.3?) to enable optical code reading, as noted in the iOS 14 web page fine print. Also note the 2 flavors of NFC tag reading iPhones: 1) automatic NFC with reader mode (iPhone Xs and later), 2) manual Control Center NFC scan mode (pre-iPhone XS).

I expect iOS 14 Apple Pay QR Code Payments to arrive at the same time. It only makes sense to enable and launch App Clip Codes + Apple Pay QR Code Payments together as one rollout. The only question is announcement timing. We already have the ‘soft’ App Clips Code October 22 launch in Japan and USA. If Apple holds another event this year, I think there’s a very good chance we’ll hear about it.

  • Many thanks to Hagiwara san for getting that NFC scan mode Control Center thingy
    Many thanks to Hagiwara san for getting Apple to do that NFC scan mode Control Center thingy for older iPhones
Only iPhone Xs and later have automatic NFC with reader mode
  • Apple Devloper site App Clip Code closeup
  • ExxonMobile App Clip Code + NFC tag sticker closeup, note the optical code differences
App Clip Code stickers combine the Apple-designed optical code with a NFC tag
ExxonMobil ‘point and pay’ App Clip in action seen in the ExxonMobil supplied video to NFCW

UPDATE
iOS 14.3 beta has support for Apple designed App Clip Code scanning. Here is a quick screen recording of the scan process and animation. The App Clip Code is a photo of the ExxonMobile gas pump stickers that launched October 22. The App Clip does not load because the ExxonMobile App is not available in Japan.

LINE Pay for Apple Pay (Updated)

LINE Pay said years ago they would add NFC/FeliCa support if customers wanted it. Now that Apple Pay is gaining QR Code Payment support in iOS 14, LINE Pay announced Apple Pay support ‘in 2020‘ at the online LINE DAY 2020 (2:34:00 mark) media event today. The announcement has special meaning as LINE is the first QR Code payment player to announce Apple Pay support and did so before AliPay.

The timing makes sense now that iOS 14 is nearing official release, but Apple has not officially announced Apple Pay Code Payments yet though they may reveal something at the online September 15 Apple Event. Things will be damn awkward if they don’t.

There are lots of questions: will LINE Pay Apple Pay be a NFC/FeliCa + QR Code Payment in one Wallet ‘card’, or will it be the Apple Pay flavor of the Line Pay JCB prepaid card already on Google Pay that works on the FeliCa QUICPay network.

LINE Pay implied the intention of leveraging both NFC and Apple Pay QR Code Payments but there isn’t much to go by at this point, except that LINE said Apple Pay will ‘complete the LINE PAY contactless payment platform.’ Whatever that means.

Now that LINE has made their Apple Pay move, PayPay is sure to follow at some point. The trend to offer flexible NFC + QR payment solutions started with Toyota Wallet and will gain momentum with iOS 14 Apple Pay, especially with App Clips.

UPDATE 12/22/2020
Line Pay and SMBC announced the VISA Prepaid Line Pay card for Google Pay and Apple Pay. It’s basically a replacement for the JCB Prepaid card that will be phased out along with plastic issue cards sold in convenience stores. The instant issue VISA Prepaid Line Pay card works on iD and EMV contactless payments networks with Google Pay but is limited to iD on Apple Pay due to the long running Apple/VISA Japan feud that may, or may not be, thawing soon. Nobu Ringo has posted his usual into video.

The Apple Pay Code Payment + App Clip Connection

The Apple designed App Clips code combines a visual code and a NFC tag

When the AliPay Apple Pay leak surfaced earlier this year the stock story was that Apple Pay must support AliPay and WeChat Pay if Apple Pay is to have any relevance for iPhone users in China. The real story is more interesting and is centered on App Clips, not AliPay or other specific QR code payment players.

Until now Apple Pay has been all about the NFC ka-ching thing, but it has also evolved along the way. Apple Pay debuted with NFC-A EMV in 2014, it added NFC-F FeliCa with Suica in 2016, MIFARE Student ID passes and PBOC China transit cards in 2018.

iOS 14 is the first time Apple Pay is moving beyond NFC. CarKey will incorporate Ultra Wideband when the Car Connectivity Consortium Digital Key 3.0 spec is finalized and ‘Code Payments’ are coming at some point in the iOS 14 cycle.

Tap or Scan Simplicity
The strength of code payments is simplicity and low cost. iPhone is both a radio (NFC) and camera (scanner). NFC always has an advantage over a scanner in that it works without light and can be activated just by the user pointing their device at an NFC reader or tag.

The downside is the NFC reader side of the equation: the reader + cash register/transit gate + transaction software has a higher initial investment than a code scanner attached to a POS system. The promise of App Clips is they finally put NFC, specifically NFC tags, on the same low cost entry bar of QR codes.

App Clips are activated by:

  • App Clip Codes
  • NFC Tags
  • QR Codes
  • Safari App Banners
  • Links in Messages
  • Place Cards in Maps

Let’s examine the ‘real world’ App Clip activation triggers: Apple App Clip codes, NFC tags, QR codes. For Apple designed App Clip codes, “You can scan them with your camera or tap one using NFC.14” The #14 footnote is interesting: “Camera support for scanning an App Clip code will be made available in an iOS 14 software update later this year.”

This means those fancy Apple designed App Clip codes are coming after the initial iOS 14 launch, and when they do Apple Pay Code Payments will certainly be coming with them. It boils down to one thing: making App Clips a simple tap or scan process. NFC tags still enjoy the ’point here’ advantage as App Clip does the rest. For visual codes the user has to launch the camera and scan before App Clip takes over.

The Code Payment/App Clip Network Connection Requirement
Apple Pay Wallet NFC payment cards have 3 major features that payment apps do not:

  • Direct side button Wallet activation with automatic Face/Touch ID authentication and payment at the reader
  • Device transactions without a network connection
  • Ability to set a default main card for Apple Pay use

Apple Pay Code payments can possibly offer this for dynamic code payments where a scanner reads the code off the iPhone screen. However, static code payments are messy because Apple Pay requires a network connection to process the payment just like apps do. In the Apple Pay code payment scenario suggested by the AliPay screenshot leaks, a static code scan directly activates the appropriate Apple Pay code payment (AliPay, etc.), the user enters the amount, taps ‘Pay’, authenticates, and Apple Pay does the transaction via the network connection. It’s a similar scenario for NFC tag payments.

Full set of images on LIHKG

It’s because of this network connection requirement that I believe Apple is pushing Apple Pay NFC tag and code payments wrapped in the App Clip experience. They will work by themselves of course, but they work better as part of the total App Clip experience. This is where App Clip codes come in.

What about App Clip codes? The iOS 14 preview page says:

App Clip codes are Apple-designed identifiers that are uniquely paired to specific App Clips and provide an easy way to find and launch an app experience at the exact place and moment you need it. You can scan an App Clip code with your camera or by tapping one using NFC.14 We will be adding support for them in an iOS 14 software update later this year.

How is this any different from regular NFC tags or QR codes? I suspect it’s a mini qualification program for developers, payment providers and merchants to supply the ultimate App Clip experience. It also works as App Clip branding and advertising for Apple.

Are there special App Clip code tags that push the App Clip experience further than regular NFC tags and QR? I suspect so and that could be fun. Think about it, what if the Apple designed App Clip code NFC tag activated an App Clip with code payment. A QR payment without the static QR code. That would be the ultimate App Clip experience indeed.

Suica UI tweaks in iOS 14/watchOS 7

As with every major iOS update the Apple Pay Suica UI gets a minor tweak or two. Sometimes they pan out, sometimes they don’t. The dynamic commute plan ‘Renew’ button was a little more descriptive in b4 and b5. At best it’s was of questionable value when the language was Japanese but downright embarrassing to look at when the language was English.

Since Wallet card UI elements can be dynamic why not highlight the expiration date in red instead? Apple engineers fortunately had the better sense to change the button label back to the sensible iOS 13 design in iOS 14 b6, the final design.

  • iOS 14 b5 Japanese
  • iOS 14 b6 Japanese
  • iOS 14 b5 English
  • iOS 14 b6 English

watchOS 7 Suica is getting some useful tweaks: card transaction history, low balance and commute plan renewal reminders, and Suica card information can now be viewed and/or set directly on Apple Watch. In watchOS 6 these can only be viewed or set in iOS Watch App.

  • watchOS 7 Suica transaction history
  • watchOS 7 Suica commute plan reminder setting
  • watchOS 7 Suica low balance reminder setting
  • watchOS 7 Suica card info

QR Apple Pay Cards for iOS 14 Wallet?

UPDATE: No WWDC20 mention of AliPay for Apple Pay Wallet but there are code references in iOS 14 beta 2, also iOS 14 PassKit: WWDC20 details and developments here

The recent iOS 14 feature leak report from 9to5 Mac closed with an interesting line, “Another change includes AliPay support for Apple Pay with iOS 14.” A reader steered me to a set of images posted to the Octopus on Apple Pay thread on the LIHKG site.

See the full set of images on LIHKG

The images suggest a few possible scenarios for iOS 14 Wallet:

  • QR Code payment system players have a PassKit API method to add a ‘QR Card’ to Wallet.
  • Wallet QR Cards set as the main card directly invoked with a side button double-click for Face/Touch ID authentication and dynamic QR Code payment generation without an app.
  • Direct static QR Code reads with Apple Pay payment.

It makes sense that Apple wants to encourage major Chinese QR Code players to join the ranks of top tier Wallet cards like any Apple Pay credit card and not be stuck in an app. Direct Apple Pay Wallet QR integration makes things more convenient for iPhone QR Code users. The Wallet card metaphor is rather strange for QR Codes but that is what the Wallet UI is built around and it differentiates cards from passes. Apple already refers to Apple Pay credit/debit cards as ‘Payment Cards’, QR Code cards will be just another Apple Pay Payment card.

Questions: Will it work offline like Wallet NFC cards? Will Wallet QR Code Payment cards require QR Code PassKit Certificates with NDA similar to NFC PassKit Certificates and will they be renamed Secure Element PassKit Certificates? Is this what the new “PKSecureElementPass” PassKit framework addition in iOS 13.4 is for (in addition to CarKey)?

We’ll find out details online this summer at WWDC20.