I was pleasantly surprised to find some hits coming from a website called limitless possibility, followed the link and discovered a great podcast by Luc-Olivier Dumais-Blais and Yanik Magnan on Japanese transit IC cards, Suica 2 in 1, the new features of FeliCa Standard SD2, Ultra Wideband Touchless and more…things I’ve been writing about for a while that never get any traffic.
Yanik does a much better job of summarizing the transit technology landscape than my messy collection of posts. I wholeheartedly agree that UWB Touchless is the perfect opportunity for Japanese Transit IC members to put aside political differences and merge, or at least ‘harmonize’ their data formats for a real all in one Super Suica. We shall see. There are things coming down the pike such as multi-secure element domain/multi-protocol Mobile FeliCa that might have transit implications. And I thank Yanik for his constructive criticism of my ‘Super Suica’ coverage. It’s very helpful and rare that anybody takes the time these days.
Extra bonus: their discussion of the Japan QR Code payment mess and a sendup of PayPay ‘gamification’ campaigns using the Canadian Tim Hortons roll up the rim thing is hilarious and spot on.
Disclaimer 1: As many regular readers know, I am not a QR Code fan. It’s not the technology so much as the assumption that the central processing model and constant network connections solve everything. When I went to Starbucks today I tried paying with the Starbucks app bar code and got a nice little rude reminder that when one link fails, the whole QR/bar code chain crashes. The WiFi at that particular Starbucks store is not robust and ends up jamming the smartphone 4G pipe because the device thinks there is a good WiFi connection. After 2 attempts without getting a bar code load, the staffer said, “turn off the WiFi.” I gave up and used Apple Pay Suica instead. Done.
Disclaimer 2: As many regular readers may not know, I am not a SoftBank fan. This goes back to the time when SoftBank bought Ziff Davis of which the Seybold Report was part of. SoftBank quickly destroyed the Ziff Davis business by sucking it dry and selling off the zombie for a good price before anyone realized it was dead. I wrote for the Seybold Report at the time. What had been a tightly run ship collapsed into chaos because the parent company starved the subsidiary groups and people didn’t get paid. Later on when I wrote reports for Off The Record Research, I regularly visited a Yahoo Japan source who complained that they could not create good iPhone apps because SoftBank constantly sucked the budgets dry. Later on he quietly told me he could not complain anymore because all the conference rooms were wired and everything was recorded. SoftBank is that kind of company. To me all they ever really do is play one big never ending shell game.
There will be lots of news and discussion in the weeks to follow but it’s important to remember a few essential points.
One: Line Pay and PayPay operations are running in the red, some people estimate PayPay could never turn a profit with its current business model.
Two: neither SoftBank/Yahoo Japan nor NAVER/Line Pay own a real bank. At some point in the cashless payments process, real cash has to change hands. Payment processors without real bank operations have to live with real bank transaction rules and fees, real banks will always have the upper hand. Having a real bank for example, puts Rakuten in a much stronger position than SoftBank. Yahoo Japan does own half of Japan Net Bank but this is a co-venture and Yahoo Japan only runs the internet service side, the other half, the real bank transaction half is owned and run by SMBC. In this arrangement SMBC is calling the shots.
As for me, I have been hanging out on the Girls Channel where Japanese women let down their hair and diss. Japanese women make, or break, products in Japan, especially everything Keitai, not men. Comments on the Line Pay and PayPay merger are very interesting and cutting. They range from “Mercari Pay is disappearing next” to “Hello Rakuten, goodbye Hagebank,” (a diss of bald Masayoshi Son, but also a double entendre for the highly leveraged SoftBank going bust). Day after day it reads like the bloom is off the Line Pay Pay Pay rose and Japanese women who created the first Keitai boom and have money now, are ready to move on. They are in it for the campaigns but not really in it. I’m going to keep hanging out with the girls. It’s a lot more fun and informative than reading the news, and faster too.
Since QR Code payment systems depend on centralized processing, a cloud outage can easily bring down the system for all transactions. While this is a minor annoyance for paying at a convenience store where you can always pay on the spot using something else, it’s not the case when QR is used for transit where large numbers of people can suddenly be stranded. This is exactly what happened in Chengdu last April. It’s a risk of using QR Codes for transit.
Today is International Haiku Day and Apple Education is celebrating it in Japan with the new version of iWork Pages that finally supports vertical text layout. In honor of International Haiku Day and vertical text support in Pages, I tried writing a haiku in vertical text using the new version of Pages. This is how it went…
Update: Japanese reactions to the Apple Education ad (top screen shot) now running on Twitter are fun and sarcastic: “Are you serious? Way too late,” “Good thing I didn’t wait and installed egword,” “10 years too late,” “Oh, Pages is finally useable,” etc.