It’s that time of year again, to ponder the mysteries of Apple Pay, Wallet, PassKit and Core NFC in the next major iOS release. I wasn’t planning a list this year because all the things covered last year: UWB Touchless CarKey, QR Code Payments, etc., are still lurking in PassKit calls and internal beta test builds and have yet to see the light of day. And then there is App Clips, a solution that finally leverages the versatility of NFC tags and iPhone NFC with reader mode was the big WWDC20 story, but it didn’t come into focus either. Too many COVID distractions.
No, no, the only thing that mattered to users and developers was this: when will Apple do something about the Face ID with face mask problem? The eagerly awaited iOS 14.5 Unlock with Apple Watch feature will almost certainly be the most popular feature of iOS 15 too. There are some interesting new PassKit tidbits in iOS 14.5: PKRadioTechnology type properties for NFC and bluetooth, the later for UWB Touchless use. This is the same pattern we saw at the end of the iOS 13 cycle with PassKit Secure Element Pass references replacing NFC Certificate Pass.
So what’s on the slab for all things WWDC21 iOS 15 Apple Pay? I have no idea. UWB Touchless and QR payment support lurking in the background might see the light of day, App Clips might get some refinements. Nothing really new. So I asked readers what they wanted for iOS 15 Apple Pay and the answer was clear: a Wallet app reboot. I didn’t think much about it until I saw the list of China T-Union add card Wallet options for mainland China.
Wallet has a very simple rule: any card that loads a Java Card applet into the secure element has to reside in Wallet, the maximum number depends on how many Java Card applets it can hold at any one time. Any card or developer that wants to loads applets and use the secure element also has to have a PassKit NFC/Secure Element Certificate Pass. This is covered by NDA but a company called PassKit (not Apple) gives us an idea what Apple’s NFC/Secure Element Pass guidelines are:
Apple care a great deal about the user experience. Before granting NFC certificate access they will ensure that you have the necessary hardware, software and capabilities to develop or deploy an ecosystem that is going to deliver an experience consistent with their guidelines.
Yeah, the end to end user experience, the whole reason behind the success of Apple Pay. But the Apple Pay user experience has seriously declined in the Face ID with face mask era. The current Wallet with its card metaphor has reached a wall, stuffing digital ID and Code Payments into the mix along with non-secure element Wallet tickets, boarding passes and reward cards, all using same old card UI, will only break the user experience on top of the Face ID with face mask inflicted damage.
Even if Apple doesn’t add new functions to iOS 15 Apple Pay, they must lay groundwork for a new, flexible and far more useful next generation Wallet app, for adding, storing, configuring and most of all, using an even growing collection of payment cards, transit cards, CarKey, reward cards, passes and digital ID items. Anything to save us from the cacophony of payment services, apps and reward goodies chasing our money and slowing us down at checkout with finding, unlocking, displaying a reward code (if the WiFi connection is good, heaven help those waiting in line when it’s bad) and finally paying. Whew.
The whole point of Apple Pay Wallet was to free us from physical card clutter. After 7 years of Apple Pay and payment apps we have digital clutter that’s almost worse than the original problem that digital wallets and smartphones were supposed to free us from. Let’s get our eyeballs and attention spans back.
Please redo the dumb dark mode driven Wallet transit card UI. All recent Wallet UI tweaks are not about making a better overall Wallet card UI experience and mostly there so it doesn’t suck in dark mode. Sorry, but it still sucks. Honestly, iOS/macOS system wide dark mode is such an overhyped piece of UI crap. I don’t use it anymore.
More built in embedded Secure Element provider support: Calypso, CEPAS, etc.
Apple Pay Japan is still missing some important e-money prepaid cards like WAON, nanaco, Edy that have been on Google Pay for some time now, it would be nice to have loyalty prepaid card support for items like DOTOUR Value Card too, and please improve the Apple VAS experience, it’s old dog slow on the store reader.
I’d do a postmortem after WWDC…maybe. Enjoy the show.
The details are interesting. On the MIFARE side, Ultralight, Plus and DESFire are supported, the security weak Classic is not. FeliCa is there of course, but the weird thing is that all devices from iPhone 7 and above are supported. You might remember that from the Apple Pay point of view iPhone 7 is not a global FeliCa iPhone, but it is from a iOS 13 Core NFC point of view. I guess FeliCa support on all iPhone 7 models was really there all along, Apple just didn’t tell us…until now.
The Apple Card rollout due this summer is a head scratcher. There was nothing new for PassKit or Wallet at WWDC19, but there are lots of things Apple Card can do in Wallet that other cards, as yet, cannot do. It feels too big and important for just a press release and a new web page. And yet, by itself, it’s too small for a full blown Apple event. I think the Apple Card rollout is going to be a very interesting release for all things Apple Pay.
Now that full 3rd party NFC access is reportedly coming with iOS 13 tag support for ISO 7816, FeliCa and MIFARE, does this mean developers get supercharged Core NFC and PassKit NFC Certificates generously handed out like condoms at a gay sex party? Probably not, the only new things in those rumors are ‘full access’ and ‘ISO 7816’, but let’s take a look at some possibilities based on the 3 NFC Forum defined NFC Modes: Card Emulation, Reader/Writer and Peer to Peer.
It’s useful to remember that A12 Bionic powered iPhone is one of the most compelling ‘Global NFC’ devices on the market, with all the important technologies in one package sold everywhere: NFC A-B-F hardware and EMV, FeliCa, MIFARE, PBOC and VAS (value added service protocol) software. Android is fragmented, especially when it comes to FeliCa support.
The big frustration for developers has been that iPhone NFC is all dressed up with no place to go. iOS 12 NFC supports Card Emulation and Reader/Writer but severely limits the Secure Element access necessary for Card Emulation with NDA covered PassKit NFC Certificates, while Core NFC is a limited Reader/Writer Mode sub-set.
The Apple Card UI and Wallet UI design language in iOS 12.2 and later, is so different from the rest of iOS 12 that I’m surprised nobody in the Apple tech blog space picked up on it. There are lots of useful card options and information that can be piped into Wallet cards from the card provider cloud, instead of sitting in a separate app.
This applies to card artwork as well. Static card artwork in iOS 12 doesn’t do anything and gobbles up precious screen space. The dynamic card art of Apple Card UI can be used to give important information to users while solving the wasted space problem.
Multiple Express Cards in iOS 13 Wallet There are major Japanese eMoney prepaid cards on Android that are missing on Apple Pay: WAON, Rakuten Edy and nananco. One ‘missing on Apple Pay’ reason is that iOS 12 Apple Pay Wallet lacks a smart way to deal with multiple Express Transit and Express eMoney Cards. Wallet can hold multiple Suica cards but only one of them can be Express Transit. It’s the same for eMoney cards.
iOS 13 Wallet will complete the journey, hopefully delivering a vastly improved and unified Wallet UI that elegantly solves the multiple Express Transit/Express Card issue, and eliminates card clash. At a transit gate the user should only have to tap, at checkout the user should only have to select a payment logo on a screen or tell the sales clerk Suica, Mastercard, etc., and pay.
Easy Card Emulation I am less sure how Apple plans to make card emulation easier for developers:
New functions in PassKit that do more
Less stringent and easier to obtain PassKit NFC Certificates
A combination of the two or
Something new altogether
Whatever the approach, I hope it keeps everything secure while making it easy for developers to add all kinds of non-EMV cards to Wallet, the major categories include…
Transit Cards: Transit cards have been tricky because up to now each one has been a kind of custom in-house job by Apple in cooperation with the transit company. HOP launched May 21 and Ventra will arrive this summer.Clipper has been rumored for Apple Pay inclusion for some time. Hong Kong Octopus (FeliCa) and Los Angeles area TAP (EMV only?) should arrive shortly after the iOS 13 launch in September. It would be great if iOS 13 PassKit makes it easy to add all kinds of native transit cards like Taiwan EasyCARD and Melbourne Myki (both MIFARE) and more (like Calypso for example) to the mix, with Apple having to do less for a real transit card coming out party. Unfortunately I don’t see Singapore’s EZ-Link card ever joining the party unless iOS 13 PassKit makes it very easy to support customized payment technology like the Singapore only CEPAS.
Regular Reward Cards: There are tons of these everywhere, mostly mag strip. My real wallet has JRE POINT, WAON POINT, Tomod’s, plus a crazy collection of stamp/point cards. How nice it would be if it was super easy for developers to port these to Wallet with NFC capability.
ID Cards: This is where ISO 7816 tag support fits in. Contactless Student ID cards in iOS 12 were a MIFARE only custom in-house job, transit cards without transit, by Apple in cooperation with Blackboard. Hopefully Apple will greatly extend ID card support in all NFC flavors for many companies and institutions, for all manner of ‘company only’ Wallet ID cards.
VAS: Apple Value Added Service protocol has been around a few years but uptake has been slow, almost as slow as VAS works on NFC readers and POS systems. This is more of an performance issue on the POS side than PassKit, nevertheless anything Apple can do to help increase VAS performance would be welcome. So would VAS working with Express Transit.
Android has a huge advantage over iOS because Android apps have the NFC access to do what they want. From RFID Insider:
Below are all the abilities/formats available for writing to a tag:
Business Card Link/URL Wi-Fi Bluetooth Email Telephone Number Geo Location Launch an Application Plain Text SMS
A fully functional Core NFC could do all this, but the important question is how would Apple want to do all this. NFC tags are great technology but they remain deeply geeky for the majority of users. The key is making NFC tags as friendly, easy and secure to use as Apple Pay. This is exactly what Apple plans to do.
The easiest way to think of it is that instead of tapping a dedicated NFC reader to pay with Apple Pay, NFC tag Apple Pay turns your iPhone into the reader. An NFC tag and iPhone is all that you need to Apple Pay at a store.
What does this sound like to you? Yep, this is enhanced Core NFC Read/Write for NFC tags that does exactly what QR Codes do. NFC tag Apple Pay is aimed right at the ‘but the store doesn’t need an expensive NFC reader to use QR’ sweet spot that QR Codes have occupied up to now. NFC tag Apple Pay levels the play field, neatly eliminating the QR advantage while offering security that QR Codes cannot match.
However don’t assume that the QR players are chained to QR Codes, it’s an inexpensive and convenient technology for building payment system app services, nothing more, not particularly sacred. Enhanced Core NFC and NFC tag Apple Pay works in an app and this offers Japanese QR Code payment systems such as Line, PayPay, etc., a way to incorporate Apple Pay NFC support in their app, if they choose to do so.
A12 Bionic iPhone XR/XS are the only devices that support background NCF tag reading and the native ability to read tags without an app. The big question in my mind is how Apple plans to implement enhanced Core NFC and NFC tag Apple Pay on older devices
Peer to Peer
iOS 12 does not support NFC Peer to Peer. I don’t see that changing in iOS 13 if it can’t be part of a new Apple Pay or related service. AirDrop already works well across devices that do not have NFC capability. That’s probably enough real world peer to peer for most people.
The Apple Pay theme for WWDC18 was ‘move Passes into Wallet, get rid of the QR Codes and replace them NFC.’ The new Apple Card UI improvements in Wallet and NFC tag support suggest the Apple Pay theme for WWDC19 will be: ‘move card functionality out of apps and into Wallet cards with new iOS 13 PASSKit controls, or get rid of apps altogether and replace them will all kinds of NFC enabled cards and NFC tags.’
It certainly makes sense. Apple Pay is NFC for the majority of iPhone users, the NFC thing that people use. Apple devoting iOS resources into making card emulation easier and better for 3rd party developers to add all kinds of cards to Wallet, and migrate functions out of separate apps to the Wallet card itself, will give the most bang for the development buck. NFC tag Apple Pay will finally bring NFC tags into the mainstream while eliminating the remaining advantages of QR Codes. It’s going to be a very interesting WWDC for all things Apple Pay.
Year over year contactless payments use in the first slide basically covers the same period of the MMD Labo report but with different questions. The Rakuten data shows Rakuten Pay in the lead, naturally, at 15.2% and Apple Pay in 2nd place at 12.9%. The MMD numbers showed Rakuten Pay at 13% and Apple Pay at 20%. Google Pay only added Japanese payment support in May 2018 so the full impact will take time to play out, the 30% Osaifu Keitai use figure from the MMD report suggests a possible outcome.
As I explained in the earlier post, Apple Pay use is highly regional and tied to Suica compatible transit routes. In major metropolitan areas Apple Pay use is higher than Rakuten but Rakuten has done a good job building an ecosystem of e-commerce, travel reservations and other services that offer members large discounts and points. That’s the reason behind the robust growth from 3.4% and the larger nationwide average use figure.
Apple Pay Suica is the entry point for Apple Pay use, the more incentives that customers have to use Suica the faster Apple Pay use in Japan will grow. Sachiko Watatani pointed out that only 27% of Apple Pay Japan capable device users actually use Apple Pay, that represents a lot of potential users sitting on the fence. The Rakuten Pay growth rate shows that points and discounts are great incentives but Apple Pay Suica, convenient as it is, doesn’t offer that. At least not without going to the trouble of getting the right Apple Pay credit cards for the right points. And even then, as setting up and using the JRE POINT app makes clear, it’s not user friendly.
The next big opportunity for Apple Pay Suica growth is ‘Super Suica’ that will unite transit cards, commuter passes and various transit point systems in a single format for plastic and mobile. Unfortunately this doesn’t happen until April 2021. Until then Apple Pay Japan needs to add the other e-money prepaid cards (WAON, nanaco, Rakuten Edy) and as many point system reward cards to Wallet as possible to keep growing. Not only that but also make them work better together than they do on their own. Think PONTA card with the kinks ironed out.