Tag: PASMO

Move Suica and other transit or e-Money cards to new iPhone (updated for iOS 17)

Apple Pay transit cards (Suica, PASMO, and ICOCA) and e-Money cards (WAON and nanaco) are different from Apple Pay payment cards in that a transit or e-Money card prepaid stored value, the card balance, is stored locally on the card itself and can only exist on a single device. Apple Pay credit/debit cards coexist simultaneously on multiple devices, not Suica, PASMO, ICOCA and other transit cards like Octopus, Clipper, SmarTrip, TAP, or e-Money cards like nanaco and WAON.

These stored value cards have to be removed from the old iPhone first, then transferred to the new iPhone. There are 2 ways to transfer cards: automatic transfer with iOS 17 Setup Assistant and manual transfer with Wallet app.

Automatic card transfer with iOS 17 Quick Start Setup Assistant
Quick Start device to device data transfer is the best way to setup a new iPhone, and iOS 17 Set Assistant now automatically transfers all payment, transit and e-Money cards from the old iPhone to the new iPhone. It is very easy to do and highly recommended.

The Apple support page Add a Suica, PASMO, or ICOCA card to Apple Wallet is updated for iOS 17 and covers moving cards in the Transfer your transit Suica, PASMO, or ICOCA card between devices section.

Place the previous iPhone near the new iPhone. iOS 17 Setup Assistant has a new Wallet section that lets you select Wallet cards to transfer in the ‘Make This Your New iPhone’ splash screen. Either select the Wallet items you want to transfer or just leave it all up to Set Assistant. Setup Assistant automatically transfers Wallet items to the new iPhone. As always, make sure all devices have a good internet connection.

The Suica 2 step: manual card transfer in Wallet app
Users can do the traditional Suica 2 step of manually removing cards from the previous iPhone Wallet app before adding them in the new iPhone Wallet app.

Step 1: Remove Suica from Wallet on the previous iPhone
On the old iPhone go to Wallet > tap Suica or other transit card > tap ‘More’ ˚˚˚ in the upper right corner > scroll to the bottom > tap Remove This Card. Don’t worry, this does not delete the card. Apple Pay automatically migrates and safely stores the card on Apple Pay iCloud for you.

  • Step 2: Add card in Wallet on the new iPhone
    On the new iPhone make sure you are signed in with the same Apple ID, open Wallet and tap Add Card “+”
    Tap Previous Cards > confirm the Suica or transit card you want to add is selected > tap Continue
    The registered card name and balance will be showing in the Add Card screen
    Tap Next to add the card to Wallet or tap Add This Card to Wallet Later to cancel
Tap Previous Cards
Confirm and tap Continue
Tap Next to re-add card to Wallet
  • Transfer Suica from previous Apple Watch to new Apple Watch
    Apple Watch Suica users upgrading to a new Apple Watch is easy with watchOS 10. From the Set up your Apple Watch • Set up as new or restore from a backup section: If you’ve set up another Apple Watch with your current iPhone, a screen appears that says Make This Your New Apple Watch. Tap Apps & Data and Settings to see how Express Setup will configure your new watch. Then tap Continue. If you want to choose how your new watch is set up, tap Customize Settings. Then choose a backup from another previous Apple Watch to restore.
  • You can also add cards manually in Wallet as outlined in the previous iPhone section.

What about Suica App and other card apps?

If your Suica, PASMO, ICOCA or e-Money card is registered in the coressponding app, your account and password information will migrate to the new device like any regular iOS app when using device to device data transfer. The apps will automatically pick up the card information from Wallet but you will need to login to access the card app account. If you deleted the app before device to device data transfer, you will need to manually enter account and password information to login when re-adding the app. See the Suica App and PASMO App guide for account setup details.

e-Money card apps ask for the Japanese mobile number used for registering the card in the app and send a verification code via SMS.

Troubleshooting

Wiped old iPhone before setting up new iPhone
If you wiped the old iPhone before setting up a new one and cannot find your previous Suica Wallet card see: Recover Suica • PASMO and e-Money cards from a lost or wiped iPhone. Other topics can be found on the Apple Pay Suica • PASMO Guide.

Robust network connection is extremely important!
Make sure iPhone has a good WiFi or 4G/5G network connection and confirm you are outside of the 2am~4am JST Mobile Suica • Mobile PASMO system maintenance window. Do not use free WiFi or carrier auto-connect WiFi, they are notoriously unreliable. Don’t worry about losing your card SF account balance or commute plan information. Apple Pay iCloud and the Suica • PASMO systems preserve all of your card information. Just make sure that you are signed in with the same Apple ID on your new iPhone and Apple Pay is turned on. Remember that even a good WiFi network connection can quickly bog down when setting up a new iPhone, make sure you have a clean connection when adding Wallet cards.

Suica, PASMO, ICOCA card ID number changes
The Suica or PASMO card ID number may change when transferred to a new iPhone or Apple Watch Wallet. Linked services like EX App (smartEX and Express Reservation), Touch and Go Shinkansen and JR East Ekinet Shinkansen eTickets stop working when the Suica, PASMO, ICOCA ID number changes and users must manually update information with each linked service account to re-link services with the new ID #. For Suica and PASMO getting full ID number requires a transit card issuer app such as Suica or PASMO app, ICOCA displays the full ID number in Wallet card details.

Transferring Suica • PASMO to new iPhone with Wallet app

Forget the Suica vs EMV open loop soap opera, it’s all about loyalty program banks now

Quick, what’s the number one complaint foreigners had when they couldn’t use their foreign issue VISA cards for Apple Pay Suica recharge anymore? Was it inconvenience? No, it was points. Specifically Chase Sapphire VISA 3x travel points. And what’s the number one compliment that foreigners have about using EMV open loop transit boutiques? Earning reward points. The Chase Sapphire VISA crowd had already moved on from Suica to PASMO back when JR East pulled 3x travel points for 1x shopping points for Suica recharge back in May 2021. Points are where the action is.

Go on over to YouTube and check out Wendover Productions How Airlines Quietly Became Banks. The video neatly explains what industry insiders and analysts have know for some time: flying passengers is a money losing business, the profit is made on selling services with loyalty programs, loyalty programs that are in reality clever financial instruments…loyalty program banks if you will. Reward points are like virtual money, but they can be treated like futures trading in that they will be traded in for certain services at a certain value…at some point. The untaxed reality gap is where all the fun happens: there are ways to earn real money off virtual money without a fixed holding period.

This is why airlines have made loyalty programs into separate subsidiary companies that are worth more than the money losing parent airline companies. The key takeaway: airlines are in the business turning a profit by selling services with attached loyalty programs to passengers riding on money losing airlines. Starbucks does a similar thing with their Starbucks card loyalty program which is also called a massive bank, all that unspent money on all those cards, similar to the Suica float. The Japanese point economic zones, Rakuten, PayPay and NTT docomo dPay have been doing all this for years already.

Is there anybody doing the same thing with rail transit with ridership still reeling in the post-Covid era? Very, very few. How many rail transit companies have a loyalty program similar to what airlines do: earning and using rewards across many different services? You probably can’t come up with one. JR East JRE POINT is a rail transit company loyalty program, the only comprehensive one that exists right now and it will formally joined with a real bank too in 2024 with the launch of JRE BANK. The recently launched JR West WESTER aims to become loyalty program, perhaps even a loyalty bank. Let’s take a closer look at how the comparisons stack up internationally.

Most transit operators around the world don’t offer loyalty programs. JRE and, maybe, MTR are the only ones.

The key difference is that Suica and Octopus are both transit and payments cards, in other words a payment platform. Owning the payments side is key for driving loyalty programs. It’s interesting too that Suica, Octopus and EasyCard used FeliCa and MIFARE that allowed them to build payment platforms that are independent of EMV. Another interesting aspect is that while JR East is a private transit company, Octopus is mostly government owned but doesn’t act like a public transit owned company.

All of the western transit companies are government owned and expected to be ‘public transit’ where making profit isn’t the bottom line. The reason why most MIFARE based transit cards never evolved beyond being transit cards (Taiwan’s EasyCard being the outstanding case) and leave the point reward franchises to the EMV open loop card brands, comes down to local politics of public transit. But is this really in the public interest?

My argument in countless posts over the years is that leaving everything to EMV open loop card brands is giving away a money franchise to the EMV consortium. It leaves money on the table that could have been used to build local transit linked services and infrastructure ecosystem that benefits all transit users and encourages transit ecosystem use.

Japanese ridership and fare income will only go down from here so Japanese transit companies need to be like airlines and earn money from selling service extras. Much better for long term transit sustainability to become a loyalty bank that leverages transit infrastructure loyalty linked services into profit. A close examination of the 10 Transit IC cards gives us a good idea of how open loop support in Japan will play out.

Most of the Transit IC cards have limited point rewards but very few have loyalty programs.

Outside of JRE POINT and WESTER, most of Transit IC cards except for TOICA and PiTaPa have some form of point bonus rewards for riding transit. Most are bare boned, manual affairs that involve a trip to the station ticket kiosk machine to load reward points. Tokyo area PASMO member transit companies have their own point systems, as do Osaka area PiTaPa transit companies which is the problem: despite sharing the same Transit IC card brand, the various point systems have no compatibility or synergy. There are a bunch of point card fiefdoms that cannot evolve into loyalty program platform. PiTiPa is the worst off of all, a failure with a shrinking user base despite being a credit card post-pay transit card.

The smallest transit cards, by user number, without robust point systems are exactly the first systems targeted for open loop by the SBI Holdings backed Japanese open loop Quadrac consortium (Quadrac for backend servers, Japan Signal for gate readers, VISA for sponsorship, SMBC for stera payment processing) : Fukuoka City Transit (hayaken) and Nankai (PiTaPa). They can implement open loop without diluting their loyalty programs because they don’t have any. It’s a similar case with ‘shared’ transit cards like PASMO.

PASMO members TOKYU and Tokyo Metro have stronger point systems silos but those silos do not translate across the PASMO ecosystem. Users can dump earned points into their PASMO card with a point recharge but there is no method for tying point rewards to services across the entire ecosystem. The dilemma for PASMO members, especially Tokyu who footed the bill for building Mobile PASMO, is balancing open loop and closed loop without diluting their PASMO related point business.

Here’s a Q&A that hopefully sums up some basic points of where things go from here.

Q: Will Suica disappear?
A: No. Suica is a loyalty platform and ecosystem, not a transit card.

Q: Will JR East replace FeliCa with EMV as the Suica foundation technology?
A: This is a topic that Japanese IT media loves to dream about like salarymen fantasizing about manga sex they read on the commute home. FeliCa and EMV are proprietary technology packages that come with licensing price-tags. EMV has the added risk that JR East would have to ally with a EMV payment brand to create a EMV white-label closed loop Suica card, like OMNY card. There are other disadvantages: NFC A is the slowest NFC transaction flavor no matter how much backend optimization the Quadrac consortium come up with, and offline payment transaction support is limited because mutual authentication and card balance is done on central servers. Last but not least: JR East owns a nice big chunk of FeliCa Networks along with Sony and NTT Docomo.

Q: Will EMV open loop be ubiquitous across all transit operators in Japan?
A: No, for the business reasons outlined above. JR East, JR West, and probably JR Central will not implement open loop as they want to sell closed loop Shinkansen tickets with loyalty programs. There isn’t any reason to partner with a EMV card brand for a white-label closed loop card when they already own FeliCa and QR closed loop products. There is also the scale problem. Open loop has been pushed by the media as a solution that solves every transit ticketing problem. It doesn’t. The reality is that open loop works best with simple fare structures. Closed loop works much better with complexity and interconnectivity.

In closing, Japan is the only country where open loop is being deployed by private rail transit companies that need to make money. Just as airlines ally and break with different card issuers for their loyalty programs, for business reasons and market politics, expect a similar market dance here. Payment technology, whether EMV, FeliCa or QR is just a means to an end of owning a vertically integrated loyalty program empire. The Japanese payments market will continue to be interesting ride that cannot be experienced anywhere else.

Lax JR Kyushu SUGOCA effort results in a fare evasion problem

Reliance on legacy paper tickets instead of increasing Transit IC use has created big fare evasion loop holes as JR West cuts costs and increases the number of staff-less stations.

I really like YouTuber kenzy201’s latest post regarding the mysterious disappearance of the ¥170 paper ticket button at JR Kyushu Kokura station kiosks. Kenzy’s simple no frills talk style might look boring on the surface but his analysis is keen and enlightening, the kind of analysis we used to get with good journalists who don’t have the time for it anymore. I highly recommend listening to what he has to say here.

When JR Kyushu revealed the reasons behind their elimination of the ¥170 paper ticket option from JR Kokura station kiosks, it shined an uncomfortable light on their operations. Because of poor management decisions over the past decade that continued JR Kyushu’s reliance on paper tickets at the expense of leveraging SUGOCA, the result was 90% of ¥170 tickets sold at Kokura station were being used for fare evasion. Cheap passage to any paper ticket unmanned station on their system. This is because JR Kyushu has a continued reliance on legacy paper tickets instead of increasing SUGOCA transit card coverage and promoting its use, and because of cost cutting there are an increasing number of staff-less stations that are an invitation to paper ticket fare evasion.

As Kenzy points out, JR East Suica and Tokyu led PASMO revolutionized transit in the Tokyo region to the point where legacy paper tickets are hardly used, over 90% of fares are Suica • PASMO, with the old style transit operator interchange paper tickets already eliminated. There are station entrance/exit areas that only accept transit IC. JR Kyushu on the other hand, and despite having their own card and system, have not done much with SUGOCA. It’s a me too transit card without innovation or marketing muscle. The usage area is limited but more than that, JR Kyushu offers almost zero incentive to use it over paper tickets. No JRE POINT or WESTER-like reward point retail/service platform effort to encourage SUGOCA use and sell services, no mobile roadmap.

It’s a huge wasted opportunity that, unfortunately, has resulted in an embarrassing fare evasion problem that won’t be solved by eliminating a few paper ticket fare options. JR Kyushu management, and certainly SMBC group stera transit, may think that open loop will fix the problems, but it will not fix them. A bolt-on thin client like stera transit needs an existing hardware base to work. JR Kyushu has to fix and enhance the SUGOCA infrastructure they already have first.

How long will the Suica card shortage last?

The first indication that something was up the FeliCa chip supply chain came on May 31 as an small announcement from Iwatekenkotsu Co., Ltd that the scheduled last leg of their Suica 2 in 1 Iwate Green Pass bus support rollout would be delayed due to new IC reader device procurement delays.

This was quickly followed by a large joint press release from JR East and PASMO on June 2 announcing that unregistered Suica and PASMO cards, the plastic ones that people can buy in Tokyo area station kiosks, would not be available starting June 8, ‘until further notice’.

On July 31 JR East • PASMO announced that registered Suica and PASMO plastic cards would not be available from August 2, expanding upon the June 8 sales suspension of unregistered Suica and PASMO plastic cards. The news turned media heads but was not a surprise to industry analysts and insiders.

The official reason for the Suica plastic card sales suspension is ‘the global chip shortage,’ but that doesn’t sound right when there are gluts out there. These things can be complex so I asked an old colleague who specializes in chip production analysis about the situation. He had this to say:

Domestic manufacturers of non-volitive memory of the type used in FeliCa chips, reduced manufacturing capacity (the NAND market segment is currently in a recession due to overproduction and excess inventory). This reduction came when there was an increase of inbound visitors to Japan buying Suica and PASMO cards. There was also increased demand for new Suica purchases due to the expansion of the Suica area to the Tohoku region, because the population is not as large as Kanto and Kansai, demand is expected to settle down soon.

However as production capacity will not return to previous levels, there is a high possibility that supply and demand will continue to be tight to some extent.

Other Japanese sources say another factor is that all transit IC manufacturing has been sub-contracted out to Taiwan. In short, buckle up folks, it’s going to be a long bumpy ride as in addition to manufacturers cutting production due to the non-volitive memory glut, Japanese IC card production (FeliCa chip, antenna, card, etc.) has been farmed out to Taiwan. As the saying goes, they’re always a great risk putting all ones eggs in one basket, especially with chip production. But no matter how many times companies learn this hard lesson, companies soon forget.

The May 27 Tohoku Suica launch and Suica 2 in 1 Region Affiliate card launches are certainly a short term factor in the FeliCa chip shortage as JR East is still selling both registered and unregistered Suica cards in the Tohoku region and Suica 2 in 1 Region Affiliate cards. Outside of the Tohoku area JR East and PASMO will continue to sell plastic commuter passes and inbound speciality cards like Welcome Suica and PASMO PASSPORT, however inventory is tight and JR East reduced the number of Welcome Suica sales outlets on August 2.

People assume that Transit IC cards from other regions like ICOCA or SUGOCA are readily available but this is not the case as operators are quietly limiting sales outlets. SUGOCA for example is not available at station kiosks but kept ‘under the counter’: buyers have to go the nearest JR Train Reservation office and ask for it. Expect this to start happening for all regular non-commuter pass Transit IC cards as well, partly to control inventory, partly to keep scalpers from cleaning out transit cards from kiosk station machines for resale.

Why not use Mobile Suica and Mobile PASMO then? Unfortunately the mobile situation for inbound visitors isn’t great: visitors with only VISA cards or Android are basically out of luck.

So unless VISA lifts their foreign card Mobile Suica blockade, and it has been in place for a year now, even Apple Pay Suica • PASMO • ICOCA users are limited to using Mastercard and Amex cards…using cash recharge. More on that situation in later post.

The easiest solution for JR East and PASMO is to encourage domestic Suica and PASMO users to go with Mobile Suica and Mobile PASMO instead of plastic cards. They are already doing that but expect more Mobile Suica and Mobile PASMO promotion campaigns and reward point enticements. If anything, the plastic Suica • PASMO card shortage is the best Mobile Suica • PASMO promotion ever.

State of Suica 2022

Now that the 1st wave of Suica 2 in 1 card launches is complete, it’s a good time to review the ‘State of Suica’. And it’s always interesting to examine the cultural differences too, when it comes to labeling trends as ‘good’ or ‘bad’. Westerners for example invariably say, what’s the point of having so many Suica card flavors? It’s a waste, better to have just one. It’s a classic double standard professing to want but insisting that life should revolve around single kind of credit card. Japanese don’t seem to care much as the culture is adept at ‘振り分け’: this thing for doing this, that thing for doing that. And the region affiliate users getting Suica for the first time seem pretty excited and all Suica varieties work the same for transit and e-Money purchases.

As of now we have the following plastic Suica card flavors beside the regular Suica available at station kiosks: Rinkai Suica, Monorail Suica, Welcome Suica and Suica Light. On the Mobile Suica side we have: Osaifu Keitai, Apple Pay, Google Pay, Fitbit Pay and Garmin Pay, along with branded Mobile Suica for Rakuten Suica and au Suica on Osaifu Keitai and Mizuho Suica on iOS. Last but not least we have 11 new Suica 2 in 1 Region Affiliate Transit cards that are the keystone of JR East’s MaaS strategy.

What exactly are the differences? It comes down to commuter passes or points. For Suica 2 in 1 cards specifically, it is both. This is a small but very important difference. All the other non-regular Suica outside 2 in 1, come with specific features and limitations. Rakuten and KDDI au users can recharge those Suica with those outside point systems but they can’t add commute plans. Welcome Suica expires in 28 days, Rinkai and Monorail Suica exist for commuter passes and nothing else, and so on.

Suica 2 in 1 doesn’t have limitations and does more than any other Suica: it can hold 2 different commuter passes (one from JR East, one from the region affiliate) and it supports 2 different point systems: messy JRE POINT which is an optional account setup manually linked to the Suica card number, and local government subsidized region affiliate transit points which are automatic and stored on the card itself. The only thing the user needs to do is use the appropriate card for transit to earn and use transit point discounts.

In a mobile payment era where everybody is distinguishing themselves with increasingly complex reward point schemes, the simplicity and flexibility of Suica 2 in 1 transit points, think of it as locally processed transit point stored fare, can go places that old Suica cannot. Imagine how many more people would use Suica transit in Tokyo if it came with transit point discounts. There are other 2 in 1 features not yet supported by regular Suica: disabled and elderly transit user discounts. These are coming to Tokyo area plastic issue Suica, and PASMO too, this October though I suspect those won’t come to Mobile Suica until it gets an upgrade.

Mobile FeliCa hasn’t been updated to the next generation ‘Super Suica’ FeliCa SD2 architecture yet, but once updated we should see Suica 2 in 1 on mobile and new Suica features, along with more Suica 2 in 1 Region Affiliate cards. All in all the new Suica 2 in 1 card format tells us where JR East wants to go.

There are some interesting numbers from the JR East FY results. All things transit took a huge hit in FY 2021 from the COVID pandemic, Suica included, but are now recovering though still below pre-covid transaction levels. Another surprise is the popularity of Eki-Net eTickets, a 39% usage rate is not bad for a service that only started in March 2020. One of the smarter things JR East did with Eki-Net eTicket discounts is making them simple and available to all Eki-Net users and credit cards. The JR Central EX system has 2 different Shinkansen eTicket tiers (EX-Press and smartEX) with larger EX discounts limited to select credit cards.

There are lots of things that JR East needs to do longterm, more Suica day passes, Mobile Suica recharge that is available 24/7, phasing out legacy mag strip ticketing and UWB touchless transit gates. In the short term we have Cloud Suica and Mobile ICOCA coming online in March 2023, the end of the current fiscal year. At the very least it should be an interesting time for JR West ICOCA users, and one more nail in the PiTaPa coffin.

Suica 2021~2022 snapshot from JR East FY report
The 1st wave release of Suica 2 in 1 Region Affiliate cards