After a long gestation, and a COVID related delay, the good old swipe MetroCard replacement has finally shipped. OMNY card: a ‘truth in the cloud’ EMV bank payment card, not a MIFARE or FeliCa ‘truth in the card ‘ smartcard like London Oyster or Tokyo Suica. As MetroCard missed the transit smartcard revolution of the early 2000’s, MTA and ticketing system management company Cubic Transportation Systems decided to go all in with a new system built on EMV and open loop, i.e. using ‘open payment‘ EMV contactless credit/debit cards for transit fare foundation instead of dedicated transit cards. It’s a ‘one size fits all’ approach where bank payments cards are promoted for every kind of purchase. The coming addition of fare capping, i.e. OMNY card features without OMNY card, further reduces the need for OMNY card commuter passes and encourages credit/debit card use.
The piecemeal OMNY rollout has not been an easy transition for MetroCard users. One problem with one size fits all open loop is that different people have different needs: minors, seniors, disabled, daily commuters with set routes, people without credit cards and so on. Even with fare capping open loop cannot handle these well, if it did TfL would have killed Oyster card long ago. Hence OMNY card is a closed loop OMNY branded EMV card with CVV security number, likely from a Mastercard issuing agency, similar to the Mastercard closed loop Ventra and Opal digital cards. Like Ventra card, OMNY card comes in plastic and the digital version will come to Apple Pay and Google Pay ‘soon’, although MTA has not given any launch window for OMNY iOS and Android apps that will be necessary for adding OMNY to Wallet and for recharge.
As most of the open loop systems in North America, UK and Australia are designed and managed by Cubic it’s helpful to compare their ticketing system profiles.
When you carefully analyze the different systems and Express Mode transit support listed on the Where you can ride transit using Apple Pay support page, one condition becomes clear: current transit systems do not support Apple Pay Transit cards and EMV Express Transit when the system uses both MIFARE and EMV open loop. It’s a choice between supporting one or the other, not both. I suspect Apple does this because of the complexity supporting MIFARE and EMV mixed mode operations on the same transit system.
OMNY is a new system however, built completely on EMV and EMV only. When Apple Pay OMNY launches, OMNY will be the first system to support both EMV as an Apple Pay transit card and EMV Express Transit mode for credit/debit cards. There is a catch however similar to using Apple Pay China T-Union cards: turning on one card for Express Transit turns off other cards. This happens when cards share the same NFC ID number which would result in card clash at the gate reader. When cards share the same ID, only one card can be set for Express Transit mode at any one time. For EMV cards this applies to payment cards as well so Express Transit Card settings will likely turn off any activated payment cards when an OMNY card to turned on, and vice versa.
After OMNY card is launched on Apple Pay and Google Pay, the next OMNY challenge will be integrating Metro-North and LIRR commuter rail ticketing. A difficult task as none of the train line are equipped with NFC card readers. MTA has yet to unveil any commuter rail ticketing integration details. Ventra has the same problem, commuter rail ticketing remains the age old conductor visual inspection, no tap and go contactless for you. And as ever there are thorny open loop user data privacy issues.
OMNY truly represents the state American public transit as it tries to get on board with mobile payments. Progress is good and welcome but a real next generation vision with meaningful forward development of American public transit will continue to be a confused mess despite endless broken promises to fix it…simply because people with money and means don’t use it. If they did, things would have been fixed long ago.
“FBI and MI5 are conducting an intensive investigation into PAX,” the source said. “A major US payment processor began asking questions about network packets originating from PAX terminals and were not given any good answers.”
The source said two major financial providers — one in the United States and one in the United Kingdom — had already begun pulling PAX terminals from their payment infrastructure, a claim that was verified by two different sources.
“My sources say that there is tech proof of the way that the terminals were used in attack ops,” the source said. “The packet sizes don’t match the payment data they should be sending, nor does it correlate with telemetry these devices might display if they were updating their software. PAX is now claiming that the investigation is racially and politically motivated.”
FBI, MI5, unnamed sources? Sounds like a spy novel. The original Jacksonville WOKV report is down to earth local news reporting with the official statement from the FBI: “The FBI Jacksonville Division, in partnership with Homeland Security Investigations, Customs and Border Protection, Department of Commerce, and Naval Criminal Investigative Services, and with the support of the Jacksonville Sheriff’s Office, is executing a court-authorized search at this location in furtherance of a federal investigation. We are not aware of any physical threat to the surrounding community related to this search. The investigation remains active and ongoing and no additional information can be confirmed at this time.”
PAX NFC terminals and POS systems support EMV, FeliCa and MIFARE protocols and are used extensively in Japan in nationwide POS systems such as FamiMart and Doutor Coffee chains. However it’s important to remember that each protocol has a hardware certification process, for EMVCo, for FeliCa Networks and for MIFARE. Card companies also have their own hardware security and certification. And even though the story sounds scary, we don’t know what ‘major financial provider’ POS systems are pulling PAX readers*, what hardware models are involved and what kind of POS software they run (provided by PAX? Developed in-house?), or what exactly the FBI are investigating.
That said, this is much more real and interesting than the silly Apple Pay EMV Express Transit VISA security scare story pushed by the BBC, mindlessly repeated by tech sites and dubious ‘security experts’ who scare people into buying their ‘services’. The so-called Apple Pay EMV Express Transit VISA exploit was just a lab experiment, this is happening in the field. The PAX story won’t get much press however because it does’t have ‘Apple Pay’ in the headline. At least not yet…I’m sure some media hack out there will come up with one, something like ‘Apple Pay sends your personal payment data to China’. Only then will people start paying attention.
*UPDATE 2021-11-03 Bloomberg reports FIS Worldpay (also based in Jacksonville next door to PAX…interesting eh?) is pulling PAX NFC readers from client systems and replacing them with Verifone and Ingenico NFC readers. FIS said, “While we have no evidence that data running through PAX POS devices has been compromised, we have been working directly with clients to replace those devices with other options at no cost to them and with as little disruption to their business as possible.” No evidence but Worldpay is replacing PAX readers anyway…based on what exactly, heresy?
PAX NFC readers comprise less than 5% of Worldpay client POS installations so we’re not talking big numbers. Meanwhile PAX has issued a long winded statement (PAX Technology announcement and resumption of trading) addressing and refuting the security risk claims from Krebs and FIS saying it’s only a geolocation feature. We don’t know which PAX reader models are involved but I suspect they are Android based. That’s the problem with all those crappy Android OS based POS+NFC all in one terminals: not only do they have lousy Android performance, they have all the Android security risks too. Dedicated hardware is way better, performance-wise and security-wise.
We’ve already seen banks and Apple chafing over transactions fees on multiple occasions, the latest being ‘Banks Pressuring Visa to Cut Back on Apple Pay Fees‘ because Apple dared release their own credit card under the Mastercard brand via Goldman Sachs. German banks and Australian banks in particular demand the right to use iPhone NFC in their own payment apps instead of Wallet so they can harvest the user data they can’t get via Apple Pay and drop Apple Pay support all together in favor of their own proprietary payment apps (our exclusive card comes with our exclusive app). But there’s an aspect of the ‘open’ argument that will not be discussed by EU regulators, the banks and credit card companies.
I’ve been watching ‘My Cousin Vinny’ a lot recently. I love the courtroom scenes with Joe Pesci’s Vinny character turning the prosecution arguments upside down. There’s a key scene early on when Vinny uses a pack of cards to convince Ralph Macchio’s character to give Vinny a chance to defend him: ‘the prosecutors are gonna show you bricks with solid straight sides and corners, but they’re going to show them in a very special way’ so that judge and jury see bricks instead of playing cards, which is what ‘open NFC’ arguments are: paper card illusions.
NFC is just hardware, it’s worthless without the software protocols that drive it. NFC also has different definitions. The bank industry defines NFC as NFC A-B ISO/IEC 14443. The NFC Forum defines NFC as NFC A-B-F for device certification. On the protocol side the bank industry defines NFC as EMV because this is their industry standard created and managed by EMVCo (Europay-Mastercard-VISA initially, now collectively owned by American Express, Discover, JCB, Mastercard, UnionPay and Visa).
Are EU regulators going to argue that ‘open NFC’ is defined as NFC A-B-F on the hardware side and EMV, MIFARE, FeliCa protocols on the software side? Of course not. They will narrowly define their Vinny brick as NFC A-B and EMV, and maybe Calypso as the transit protocol is used in France for transit. Why would they do that?
It’s very simple. European banking interests don’t want to pay transaction fees to Apple, the Apple Pay tax. They want to cut out the middle man with their own exclusive apps and harvest user data. They don’t want inconvenient questions such as why there are all those different NFC standards and protocols out there, how this came to be and what really constitutes ‘open’. Why did the ISO/IEC Joint Technical Committee choose Phillips NFC-A and Motorola NFC-B while shutting out Sony NFC-F? Was that part of creating an ‘open’ and level NFC playing field on the global marketplace? Of course not, it was about playing favorites while shutting Sony and Japan out of the game. Now they want to do the same to Apple Pay. I still think Junya Suzuki is right: the EU will never demand the same thing of Samsung Pay or Huawei Pay that they are demanding from Apple.
Sawada Sho tweeted a thoughtful question recently regarding the App Store in-app payment controversy. He pointed out that gaming and other platforms charge developers great deal of money for hardware and software access, nobody questions that. Apple offers a lot of access for a very low price, is it fair to demand free passage on the App Store because it is Apple? Sho san thinks the Apple transaction cut is a fair tradeoff. Some tech writers have occasionally asked the same basic question: what’s fair?
EMV, MIFARE and FeliCa all have licensing and certification fees that all customers (developers) pay. Apple has gone to a lot of expense licensing those technologies in addition to licensing a GlobalPlatfrom Secure Element that they build into their own Apple Silicon. Those costs are recouped by Apple Pay transaction fees and fund future developments like digital keys with UWB, ID and other Wallet goodies we’ll get later on in the iOS 15 cycle. I’ve said it before and say it again: Apple took the time and expense to build a first class restaurant and outsiders are demanding the right to use Apple’s kitchen to cook their own food to serve their own customers in Apple’s restaurant.
I guess EU regulators want to give those away free to EU banking interests and let them have their way in the interest of ‘open standards’ that they define and end up protecting the home turf. That sounds like a good deal to me.
The BBC asks the question, yet again: “London’s Oyster card: Are its days numbered?” It’s no secret that Transport for London has been trying to get rid of Oyster ever since 2011 when TfL, eyes firmly locked on the London Olympics, decided to put their resources into the emerging EMV contactless standard:
The current Oyster system, though very popular, is expensive and complex to administer. Contactless bank cards use existing technology, responsibility for issuing cards would lie with the banks rather than TfL, and the operating costs should be lower.
In 2017 there was a push to nudge people away from their Oyster cards and towards contactless. One announcement rang out all over London’s tube stations: Why not use your contactless bank card today? Never top up again, and it’s the same fare as Oyster.
Contactless cards use, plastic and digital, surpassed Oyster card use in mid 2018, but this doesn’t mean TfL is killing Oyster. Not everybody has a smartphone or bank payment card, or wants to use them for transit and public transit, by it’s very definition, has to offer everybody the means to buy a ticket with cash at a station kiosk.
Another problem is that the EMV digital transit closed loop model isn’t a cure all solution, just one more piece of a complicated service puzzle. And so TfL’s Mike Tuckett states the obvious: “I can’t imagine a situation where everyone either will have a bank account and card suitable to pay and wants to…it’s about letting people naturally migrate towards it.” A new Oyster system is said to be coming on line later with year with weekly caps that match EMV contactless card caps.
The second, less obvious reason for keeping Oyster cards around is ‘the float‘, there’s more than half billion pounds sitting on unused Oyster cards (I’ll bet you there is more than that) which TfL earns interest on, then use to “improve the transport network“. In this sense it’s a shame that TfL didn’t go with the MIFARE stored fare model for digital wallets instead of going all in with EMV. They could be earning more interest on their float to build a transit platform business instead of giving it away to banks, but that opportunity passed in 2011.
If TfL really launches a digital EMV closed loop Oyster card similar to the digital Opal one being tested in Sydney, no guarantee that will happen, the debate might subside a little. At any rate the ‘kill Oyster it’s dead already’ debate will continue, along with stories reaching the same conclusion of the BBC piece. It’s less debate than it is entertainment, the real debate being: will public transit use ever recover to pre-COVID levels.
iOS 15 Wallet is deceptive. The first impression out of the box is that nothing has changed much. It looks the same, it works the same. It doesn’t help that many of the new features won’t come until later in the iOS 15 life cycle and will be limited to certain users and regions. ID in Wallet for example is only due to launch in eight American states ‘late 2021’. Wallet keys for home only work on A12 Bionic iPhone XS and later while office and hotel key “device requirements may vary by hotel and workplace.” In Japan the iOS 15 Wallet feature section is missing altogether. The fine print reads like Apple is giving itself the biggest set of loophole opt outs ever, as if to say, ‘sorry, better luck later on.’
This is because Wallet key and ID cards are exactly like the Apple Pay launch in 2014 when the contactless payment infrastructure in America at the time was way behind Europe and Japan. The contactless transition has been bumpy, uneven and continues to plod along while stores have been slow getting their act together. Early Apple Pay adopters grew accustomed to hearing that classic gag line at checkout when things didn’t work right: “you’re holding it wrong.”
Wallet keys and ID will see a gradual measured uptake just like Apple Pay payment and transit cards. But unlike payment cards and transit cards, the reader infrastructure side of the equation for digital keys and ID cards is only just beginning. For some people it may be years before they have the opportunity to use digital key with their car, home or apartment. The initial use for Wallet ID, TSA security checks for domestic US air travel, represents only a small subset of a much wider future potential. How long will it be before state government services are fully equipped to read their own digital issue ID? And what about in-app ID checks, there’s huge but undeveloped potential there too.
Apple is leading the digital wallet transition for keys and ID as they did for payments when Apple Pay launched in 2014. Sure, there are others already doing it on a limited scale and Apple may be late to the party, but because Apple takes the time to make complex things easy to use and get it right, eventually it’s everywhere. Even without keys and ID, iOS 15 Wallet offers some deeply useful UI improvements that will remove a lot of frustration for all Wallet users. Let’s take a look.
New Add to Wallet UI The new Add to Wallet screen with card categories is the gateway to new iOS Wallet features, it also solves long standing UI problems that confused users for adding transit cards. The main categories:
Debit or Credit Card Add debit/credit, the same process we’ve had all along.
Transit Card The add Transit Card category is new and lists all available transit cards that support direct Wallet card add and Apple Pay recharge. Transit cards that can only be added and recharged via an app such as Portland HOP and Chicago Ventra are not included. Some transit cards on the list are somewhat deceptive. Hong Kong Octopus and China T-Union cards cannot be added without certain locally issued credit/debit cards but you only get the warning message at the very end of the addition process that aborts it. The only transit cards that anybody from anywhere can add to Wallet are: Suica, PASMO, SmarTrip, Clipper and TAP.
Previous Cards Previous Cards is a new category that appears only when needed. It shows cards, keys and passes that are attached to the user Apple ID but are not currently in Wallet.
The region-free Wallet These seemly mundane UI tweaks are much bigger than they look. Before iOS 15, Wallet did not make a clear distinction between first time card issue (adding a card) and re-adding previous cards that were already attached to the user’s Apple ID. Adding cards to Wallet was also region dependent, that is to say users had to set the iPhone region to match the issuer region to add those cards. This has been a real pain for transit cards: Japan to add Suica, Hong Kong to add Octopus, America to add SmarTrip, Clipper or TAP.
Changing the device region is easy to do, but it’s not intuitive at all and bewildered users. It’s not uncommon for people to think that changing the region messes up the Apple Pay cards they already have making them unusable, or that a certain region setting is required to use a particular card.
Neither is true, but region-dependent Wallet was a big source of confusion that kept people from using great Wallet features and caused support problems, especially for transit card users. Do a Suica search on Apple Support Communities. The number one support issue is: I lost my Suica card, how do I get it back in Wallet?
The new UI fixes this problem by making a clear distinction between removing Wallet cards vs. deleting them. Wallet has a simple rule: removing a card added in Wallet does not delete the card but stores then on iCloud. Cards added in Wallet and keys are hooked into the user’s Apple ID. This is easy to see in Suica App which displays the unique Apple ID/Apple Pay identifier for each Suica card.
The pain point was the inability to see what cards were still attached to their Apple ID sitting on the Apple Pay iCloud server when not in Wallet. Most people assume a card not is Wallet is lost forever, the classic ‘I lost my Suica’ problem described above. This happened all the time in pre-iOS 15 Wallet when the user signed out of Apple ID without realizing it or migrated to a new iPhone without doing Wallet housecleaning on the old device. Removed cards were always parked safely in iCloud but there was no easy way to see them. With Previous Cards and region-free Wallet, you always know where to find your Wallet cards.
Knowing exactly where your Wallet cards are, in Wallet or parked on the server, and how to really truly delete them from the cloud, makes using Apple Pay easier. When users understand that Apple Pay has their back, they trust and use it more. Trust is far more important than technology.
From now on the new rules are: removing a card only removes it from Wallet. Only the extra step of removing a credit/debit card from Previous Cards removes it completely from Apple ID. Stored value cards like Suica can only be deleted with the card issuer app.
ID in Wallet is the biggest new iOS 15 Wallet feature, important enough that Apple announced details and launch states before the September Apple Event, which is unusual for a feature due late 2021 early 2022. The press release clearly explains (but does not show) the exact process for adding and using an ID, and the some security details behind it. Carefully crafted screen images clearly illustrate that ID in Wallet does not show detailed personal information, not even a full name, only the ID elements that will be transmitted by NFC to the TSA reader. Like Apple Pay, users do not need to unlock, show, or hand over their device to present their ID, they simply authorize and hold to the reader.
ID Security and Privacy It looks slick but there are lots of interesting things Apple has not shown yet, like the actual adding process, that will certainly be highlighted at the September Event. Apple is advertising high level security and privacy for ID in Wallet but there are device distinctions security concerned users will want to know about, specifically Secure Intent.
Secure intent, in a very loose sense, is the user action of confirming ‘yes I want this transaction to proceed’ by double pressing a button (Face ID and Apple Watch) or a long press (Touch ID). But there are important differences: by Apple’s official definition, Face ID iPhone and Apple Watch are secure intent devices, Touch ID iPhone is not.
Secure intent provides a way to confirm a user’s intent without any interaction with the operating system or Application Processor. The connection is a physical link—from a physical button to the Secure Enclave…With this link, users can confirm their intent to complete an operation in a way designed such that even software running with root privileges or in the kernel can’t spoof…A double-press on the appropriate button when prompted by the user interface signals confirmation of user intent.
The most secure ID in Wallet secure intent transaction is a double press button authorization action that tells the secure enclave, where your biometrics are stored, to release authentication to the secure element, where your ID credentials are stored, for the transaction magic take place. Apple: “Only after authorizing with Face ID or Touch ID is the requested identity information released from their device, which ensures that just the required information is shared and only the person who added the driver’s license or state ID to the device can present it.” There is no Express Mode for ID card nor would you want there to be.
There is another aspect to consider, one that Apple certainly won’t divulge: who manages and runs the backend centralized mobile ID issue service that plugs into Apple Pay servers. The direct in Wallet ID card add process demonstrates a high level of integration: “Similar to how customers add new credit cards and transit passes to Wallet today, they can simply tap the + button at the top of the screen in Wallet on their iPhone to begin adding their license or ID.”
We can get an idea of what’s involved on the ID backend from the Japanese Ministry of Internal Affairs and Communications (MIC) English PDF document: First SummaryToward the Realization of Electronic Certificates for Smartphones with a diagram of the digital ID system architecture for the Individual Number Card (My Number). MIC are in discussions with Apple to bring the digital My Number ID to Wallet. The Android version is set to launch in 2022.
There has to be a partner service company that sub-contracts mobile ID issue services to participating state governments…somebody that does the heavy lifting of linking various state database servers to provide a centralized card issuing service so that Apple can provide a seamless ID add card experience. But it must be an independent entity that can provide the same set of backend ID issue services to other digital wallet platforms (Google Pay, Samsung Pay, etc.) at some point. Because if it is not an independent entity providing those services, Apple is inviting more claims that Apple Pay is a monopoly. It’s a mystery worth digging into. Nevertheless, Apple is paving the way by integrating ID issue directly in Wallet that eliminates crappy 3rd party apps. It’s a huge effort that hopefully makes digital ID easy, practical and widely used.
Digital Keys and Power Reserve Express Mode Home, office and hotel keys are the first new iOS 15 Wallet feature on launch day. Where is the Add to Wallet Key Card category? There isn’t one. Keys are slightly different and cannot be added (issued for the first time) to Wallet directly because the mobile key issuing company has to confirm user identity before giving the key. The most common way to add keys for the first time is with an app. From the Apple car key support page:
Open the car manufacturer’s app and follow the instructions to set up a key…Depending on your vehicle, you might be able to add car keys from a link that your car maker sends to you in an email or text message, or by following steps on your car’s information display.
Keys removed from Wallet can be re-added quickly via Previous Cards. According to the iOS 15 and watchOS preview page, keys appear to come in 2 basic varieties, sharable and un-sharable, device specs are different depending on the type of key.
Car keys with Ultra Wideband
iPhones and Apple Watches equipped with U1 chip(iPhone 11 • Apple Watch 6 and later)
Car keys (NFC)
iPhone XS • Apple Watch 5 and later
Device requirements may vary by hotel and workplace
All keys work in Express Mode as keys, unlike ID, require Express Mode to be useful. iPhone XS with A12 Bionic powered NFC supports Express Mode Power Reserve, a huge performance difference from previous Apple Silicon. The extra 5 hours of power reserve key access with a drained iPhone battery are crucial and it’s understandable why Apple set iPhone XS as the base iPhone for using car and home keys.
There might be conditions for office and hotel keys depending on the key issuer. In Japan for example iPhone 6s, iPhone 6s Plus, iPhone SE (1st generation) cannot be used for FeliCa based key access, hence the ‘device requirements may vary’ tag.
One more issue here is that mobile key issue is a complex process for hotels, and one assumes offices as well, one that usually requires an app with an account to securely issue a mobile key with set limitations (time, area, etc.).
It’s important to note that issuing digital keys is only one step of the complex process that allows guests to bypass the front desk. Apple’s announcement certainly does not spell the end of the hotel app as we know it…
It’s a big step toward streamlining a process that has, until this point, prevented many guests from using their phone as a digital room key. But, Wallet only solves one segment of the end-to-end operation required to get a guest checked in and room access issued. The bigger issue is connecting identity with access, which requires many more steps beyond issuing a key.
Pairing an identity with access is the core issue of key issue. If I had a crystal ball to read, I might see a future where your ID in Wallet is the only confirmation needed to add a key directly in Wallet, no apps. It would be nice if things turned out that way over time. Perhaps that is one of Apple’s goals for releasing home-hotel-office keys and ID at the same time.
Wallet expansion and housekeeping The last improvement is that iOS 15 Wallet now holds up to 16 cards. The previous official limit was 12 cards (8 cards for pre-A11 iPhone), though Apple hasn’t mentioned the new limit in any support pages. If you have trouble adding more than 12, remove one taking the total down to 11 cards, then add more cards up to the new limit. The limit is defined as cards that use the secure element for transactions: payment cards, transit cards, keys, and ID. Passes don’t count and used passes are automatically cleared and stored in the new archived passes category. One hopes Wallet will do similar housekeeping for expired hotel keys in a later iOS 15 update.
The expansion seems trivial but 4 more parking spaces in Wallet garage is a godsend not only for card otaku but also for regular users who already have lots of payment and transit cards, it’s easy to hit the limit. The housekeeping changes are appropriate and timely, going forward we’ll all be adding car, home, office, and hotel keys along with our driver’s license to an ever growing Wallet.
UPDATE An earlier edit of this post incorrectly stated that watchOS 8 Wallet did not support hotel and office keys (they were not listed on Apple’s watchOS 8 preview page but mentioned on a separate PR release). Apple PR reached out regarding the error and has been corrected.
Last updated 2021-11-24 (updated ID in Wallet launch from late 2021 to early 2022)