Dear Apple and JR East, we need Apple Pay Family Suica

watchOS 7 Family Setup is a bigger deal than many people might think at first glance. Apple Cash Family is just one part of the service with transfers from a parent’s iPhone to a child’s Apple Watch. It’s the most compelling Apple Cash use case I can think of, and Apple Watch for children without iPhone is appealing to parents in a way that iPhone by itself is not.

I’ve always said that if Apple Watch ever gained direct Suica loading with parental controls, Apple could make a killing selling it into the Japanese education market. watchOS 7 Family Setup is almost there for the JP market but needs one more thing: Family Suica.

Next generation ‘Super’ Suica is coming early 2021 and next generation FeliCa is shipping in November. We already have digital car keys in Wallet that can be shared and Mobile Suica will be doing a lot more on the cloud with Super Suica. Apple and JR East have all the necessary new features they need to create an insanely great Apple Pay Family Suica.

The service outline is simple and combines what car keys do in Wallet with digital key sharing and Apple Cash Family does with transfers and limits. A master Apple Pay Suica ID is setup on an iPhone and manages family member Apple Pay Suica on other devices. The master ‘organizer’ would transfer stored fare (SF) via Messages and set spending limits just like Apple Cash Family does. Simple intuitive convenience.

Apple Pay Family Suica also needs transferable commuter passes. That way a parent can set one up for a child, transfer it to Apple Watch and renew it remotely. Transferable commuter passes would also be handy in our COVID teleworking era as working parents might not need a pass every working day. A “hey honey can I borrow your pass today,” thing that plastic transit card users do all the time.

So far nobody has managed to to produce a smartwatch that matches the super convenience of Apple Watch and Apple Pay Suica. If JR East and Apple produce Family Suica, they would effectively future-proof both next generation Suica and Apple Watch in the Japan market.

Smells like Super Suica: Sony unveils next generation FeliCa

Sony announced the next generation FeliCa chip on September 8. Next generation FeliCa was mentioned in the September 2018 next generation Suica, aka Super Suica, press release. This is the first glimpse into some of the new FeliCa features that Super Suica will use. The Japanese and English press released highlight different feature sets. A basic rundown:

  • Extended Overlap Service: different service providers can share additional services, while making the most of existing systems.
  • Value-Limited Purse Service: purse data can be set as a negative numerical value, and enables “Upper Limit Value” and “Lower Limit Value” to be specified.
  • FeliCa Secure ID: on the surface this cloud based service sounds exactly like the digital car key feature Sony and NTT Docomo demoed at the Docomo Open House back in January and exactly like Apple Pay Car Key sharing. Dare I say there seems to be more web service functionality that might relate to the NFC Tag Maas Suica hinted at by AquaBit Spirals CEO Tomohiro Hagiwara.
  • Additional Security Options: state of the art encryption, integrity protection option for ‘cost-balanced system solution use cases where higher priority is given to high-speed transactions while meeting the required security needs’. The new chip also complies with Public Transportation IC Card Protection Profile (PTPP).

The new hardware chip is NFC Forum Type 3 Tag compliant and works with NFC Forum certified devices.

As I explained previously, one big aim of Super Suica is sharing resources and services to reduce costs. Right off the bat Extended Overlap Service looks exactly what Super Suica wants to do: host other transit company commuter passes and reward points. The new FeliCa Japanese press release graph illustrates this, it almost looks like dual mode services in a single mode card. I think Super Suica is going to leverage the shit out of it.

Another interesting feature is the Value-Limited Purse Service. Super Suica will certainly get a stored value purse upgrade from the current ¥20,000 limit. I’m curious to find out if next generation Suica uses the new feature for additional stored value services.

One big question is when does FeliCa Networks upgrade Mobile FeliCa with all these new features and when do licensed developers get the goods. Sony and NTT Docomo already demoed Android Osaifu Keitai smartphones using FeliCa Secure ID and digital car keys with Ultra Wideband ‘Touchless’ in January. I think it’s safe to assume licensees get new FeliCa chips and upgraded Mobile FeliCa at the same time.

This is just a cursory overview. I have fingers crossed that FeliCa Dude will post something to Reddit that will delight and enlighten us when he has the time. In the meantime we have Apple Pay PASMO coming down the pike very soon in what I hope is a preview of more to come in 2021.

UPDATE
FeliCa Dude has posted an excellent overview on Reddit covering the new features and what they mean for operators. More than ever I am convinced that the big new marquee features, Extended Overlap Service and Value-Limited Purse Service will be playing major roles in Super Suica.

When your iPhone X NFC stops working

A while ago Apple Pay just stopped working on my iPhone X. My phone simply hasn’t been detected by any NFC readers I’ve tried. At this point I finally have some spare income and would like to invest in fixing it. I don’t particularly care how involved it is, but I just can’t find any information on where the actual NFC antenna is and if it has the same lock that the face ID sensors do. I’m sorry if I’m just missing some fairly obvious information here. I would just like to be able to use Apple Pay again.

Reddit post

The Express Transit user base has greatly expanded in the US with the rollout of Apple Pay SmarTrip and Apple Pay TAP. Some iPhone X users will invariably discover they have problems using Express Transit and consider getting it repaired. iPhone X AppleCare is expired for most people at this point, getting iPhone X NFC repaired isn’t cheap or easy.

I ran across a Reddit post asking about the self repair challenge. The iPhone X has a unique volume button / NFC antenna cable design that I suspect is the culprit behind the infamous long running iPhone X NFC problem. Some repair forums report that the volume button / NFC antenna cable is serialized and simply replacement may not work.

I’ll cut to the chase: unless you love spending time and money repairing your iPhone, I strongly urge you get a replacement from Apple if you can, or better yet upgrade to iPhone SE. Touch ID is much better than Face ID when navigating the outside world wearing a face mask, and you get A13 Express Transit power reserve and background NFC tag reading that’s gonna work great with iOS 14 App Clips.

The Apple Pay monopoly debate: are we really comparing Apples with Apples?

Ruimin Yang’s detailed and thoughtful post, “Apple Pay monopoly, are we really comparing ‘Apples’ with ‘Apples?“, outlines the entire Apple Pay system architecture, how it compares to other digital wallet platforms, (Google Pay, Samsung Pay) and what ‘open vs closed’ means in the whole ‘Apple Pay is a monopoly’ debate. I highly recommend it if you have any interest in digital wallet payments.

As Yang explains, ‘open’ is not easily defined and the options are not easily implemented, especially when it comes to Apple’s highly customized and constantly evolving Apple Pay platform built around their A/S series chip Secure Enclave and Embedded Secure Element. Apple has spent a lot of time, money and effort in building the Apple Pay brand as the high benchmark standard for secure, private and easy to use digital wallet transactions and services. It is not your standard off the shelf NFC + Secure Element package.

It is telling that Germany, a country with one of lowest rates of credit card use and whose banks fought to keep Apple Pay out, is pushing for ‘open NFC’ the most. It sounds like an across the board move but it’s really aimed at Apple Pay.

This is European business politics in the age of digital wallet wars: mobile payments and digital wallets have disrupted everything and the traditional players, banks and card companies i.e. the real gatekeepers, are doing everything they can to keep the upper hand by using the open NFC argument to force their own branding on Apple’s platform in place of Apple Pay.

In the European tradition, regulation is invariably the go to strategy for keeping the status quo. I still think Junya Suzuki has it right: the EU would never demand the same thing of Samsung or Huawei that they are demanding from Apple. In other words, politics.

Previous coverage:
What does open Apple Pay NFC really mean? (11-17-2019)
The Apple Pay EU antitrust investigation (6-20-2020)

iOS 14 App Clips unlock the power of NFC background tags

We first got a taste of iOS 14 App Clips with the slick Titanium Apple Card setup that leverages the NFC background tag reading ability of iPhone XR/XS and later. Jennifer Bailey gave a sneak peek of NFC background tag Apple Pay in May 2019 but the pieces weren’t in place for a WWDC19 rollout.

The first problem was the iPhone lineup. iPhone 8 didn’t fit because only A12 Bionic devices and later support NFC background tag reading. This was solved with the release of A13 Bionic powered iPhone SE and deletion of iPhone 8 from the lineup.

The second problem was the clunky ‘launch an app’ or ‘launch Safari’ to do anything. This has been a problem for NFC tag solution providers like SmartPlate. User interaction needs to reside on a task focused pop-up sheet while the screen is on. The new iOS 14 App Clips framework that works hand in hand with iOS 14 Core NFC to load just what is needed to take care of the NFC tag task at hand, is the right solution.

The pieces appear to fit very nicely now: the NFC background tag sheet pops-up ‘while the screen is on’, the right code snippets load in for a simple focused task, the user can Sign In with Apple ID if needed, and pay with Apple Pay. Simple, uncluttered action; no apps, no Safari launch. And we have background NFC tag reading on every current iPhone model.

There are a few flies in the ointment:

  • Face ID in the face mask era is a lousy unlock and Apple Pay user experience, App Clip powered NFC background tag reading is gonna rock on Touch ID iPhone SE even though it was designed for Face ID.
  • A network connection is required, Apple Pay transactions at the NFC reader work without a network connection but App Clips + Apple Pay transactions need a network connection for the obvious reasons of loading app clip content, and because of this…
  • A weak borderline WiFi connection can jam the entire process even with WiFi Assist turned on.

The NFC advantage over QR Codes here is that background tag reading automatically pulls up the App Clip sheet when the screen is on while QR Code users have to manually pull up the QR reader app and scan a code to join the fun.

The combination of App Clips, NFC tags and Apple Pay will be extremely disruptive in markets where NFC and QR payment players are very competitive. Places like Japan. PayPay and Line Pay lose their edge. Smart QR payment players can adapt and add NFC tag support in their payment apps. And they can bypass Apple Pay if they want to, though it won’t be as slick. Ultimately they are not wedded to QR codes, PayPay and Line Pay have always said they would add NFC if customers want it.

App Clips finally unlocks the power of background NFC tag reading and is the other big WWDC20 Apple Pay development in addition to CarKey and Apple Pay QR Code AliPay payments. App Clips puts NFC tags on equal footing with QR Codes for the first time with the added edge of the ‘when the screen is on’ background tag read sheet pop-ups. This will be huge.