Is there an App Clip Code for that?

Embedded NFC integrated App Clip Code (L) and Scan-only App Clip Code (R)

iOS 14.3 is the big coming out party for App Clips now that App Clip Codes are in place. Apple posted App Clip Code HIG documentation, App Clip Code Generation tools and more. There are lots of interesting tidbits and 3 ways to engage:

  • iPhone XS and later models with NFC reader mode: “The NFC-integrated variant uses an iPhone icon at its center that guides people to hold their device close to the App Clip Code.”
  • Pre iPhone XS models without NFC reader mode: “scan it using the NFC Tag Reader in Control Center.”
  • All iPhones using Camera app or Code Scanner: “scan-only variant uses a camera icon in its center to let people know to use the Camera app or the Code Scanner in Control Center to scan the App Clip Code.”

The guideline also states, “for NFC-integrated App Clip Codes, choose Type 5 NFC tags.” Type 5 tags are ISO 15693/NFC V used for library books, medical packaging, ski passes etc., but choose instead of use is a recommendation not a rule. Core NFC lists ISO7816, ISO15693, FeliCa, and MIFARE tag support. NFC Forum Tag definitions are:

NFC Forum TagISOJISNFCProducts/Protocol
Type 1ISO 14443-3-AATOPAZ, various
Type 2ISO 14443-3-AANXP MIFARE Ultralite
Type 3ISO 18093JIS X 6319-4FSony FeliCa
Type 4ISO 14443-4-A
ISO 14443-4-B
A/BNXP MIFARE DESFire
Type 5ISO 15693VNXP ICODE, various
The Wikipedia NFC tag table is also helpfully detailed

So why is Apple going to all this trouble to market App Clip Codes? They could have done it all with QR Codes and NFC tags but App Clips are mini apps, App Store quality apps without the App Store. The branding of App Clip Codes defines a different and unique user experience. The NFC reader mode App Clip experience is slick ‘point and run’ fun, but the 2 for 1 ‘scan only or NFC embedded’ in one App Clip Code is practical: (1) physically accessible and close = NFC, (2) physically inaccessible or far away = code scan.

There will be many different App Clip user experiences running from general app launches to specific actions. Based on my Kitasando Coffee App Clip experience I would say, the quicker and more focused the App Clip experience, the more likely the user will use it again or go in for the full app. Apple’s HIG documentation emphasizes clarity and simplicity…good advice.

Now all I want to know is when can I finally buy softcream with an App Clip.

Practical advice from App Clip HIG

App Clips at Kitasando Coffee

Kitasando Coffee was one of the Japan debut sites for App Clips. I finally had time to check it out today. The overall experience was similar to the Starbucks app mobile order and pay. Regulars would use the full blown Coffee App but I wanted to see how fast the App Clip ‘point and pay’ experience would be.

My iPhone 11 NFC reader mode kicked in and launched the Coffee App Clip, I ordered and paid with Apple Pay, all just under a minute even with first timer ‘what do I do now’ pauses, then waited for the order to be filled. There was no ‘Sign in with Apple ID’ step, just point, order, pay, pickup. The video shows the whole process with the order wait time edited out.

App Clips does a very good job of utilizing NFC reader mode and loading time with 4G LTE was also good. I still have doubts about the experience in a marginal WiFi environment (the WiFi Assist factor) and hope to test different places as App Clips gain traction. Bottom line: if NFC with reader mode is this slick, why would anybody bother with QR or App Clip Codes?

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.

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.

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.

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 and higher performance: state of the art AES encryption method with high assurance EAL6+. 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’ and last but not least higher transaction speeds. 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 next generation Suica is sharing resources and services to reduce costs. Right off the bat Extended Overlap Service looks exactly what Suica hopes 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 next generation Suica is going to leverage the shit out of it.

Another interesting feature is the Value-Limited Purse Service. Next generation Suica will hopefully get a stored value purse upgrade from the current ¥20,000 limit. I’m curious to find out if it 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.

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.

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.