Japan: DoCoMo Drives Nationwide Rollout of Contactless Wallet Phones

 

We're Updating our Interactive Map and Project Pages

Stay tuned for all new an all-new interactive map and exclusive content on NFC projects across the globe.

 

Countinue Reading

 

JapanNationwide
Scope: 
Rollout
Status: 
In progress
Launch: 
Jul 2004
Main Application: 
Payment and ticketing
Mobile Operator: 
NTT DoCoMo
Mobile Operator: 
KDDI
Mobile Operator: 
Softbank Mobile
Service Provider (application): 
NTT DoCoMo (iD)
Service Provider (application): 
JR East (Mobile Suica)
Service Provider (application): 
bitWallet (Edy)
Service Provider (application): 
Seven-Eleven (nanaco)
Service Provider (application): 
JCB (QUICPay)
Service Provider (application): 
McDonald’s (loyalty)
Service Provider (application): 
All Nippon Airways (airline check-in, loyalty)
Service Provider (application): 
Japan Airlines (airline check-in)
Service Provider (application): 
Coca Cola Japan (Cmode—vending purchases)
Service Provider (application): 
Yodobashi (camera store—loyalty)
Merchants: 
500,000-plus
Users: 
5 million-10 million regular (est.)
NFC Handsets: 
Various (non-NFC) models (More than 60 million distributed)
TSM*: 
FeliCa Networks
Secure Element: 
Embedded
Other Vendors: 
Sony Corp., others under license (FeliCa chip), NTT Data, others (OTA network and IT services), Sharp, NEC, Fujitsu, Panasonic, Casio, others (handsets)

NTT DoCoMo launched its Osaifu-Keitai, or contactless wallet phones, in July 2004, mainly as a platform for its ambitious plans to establish a new payment brand in Japan via its phones. DoCoMo and its two major telco competitors have made Sony’s embedded FeliCa contactless chip a default feature in most of their models. About half of Japan’s more than 100 million subscribers carry the FeliCa phones, capable of supporting a host of applications--from several brands of contactless e-money to transit ticketing, loyalty and airline check-in.

NFC Times Take: 

DoCoMo’s gamble on contactless wallet phones has yet to pay off, despite the impressive numbers of contactless phones, mobile applications and acceptance points. Transactions figures showing how much Japanese subscribers use the phones are hard to come by. Some estimates put regular use at about 10%, though more tap their phones to pay on a less frequent basis. Consumers can tap contactless cards on the same terminals. Sony’s proprietary technology, FeliCa, increases costs for contactless cards and phones, as well as readers, and prevents expansion outside of Japan. That’s a situation that even DoCoMo wants to escape by eventually moving to NFC in Japan. This is despite the large share of the licensing and application management organization it owns with Sony and JR East, FeliCa Networks. DoCoMo’s competitors KDDI and Softbank Mobile are even more keen to move to standardized NFC.

 

 

* Trusted Service Manager: Defined loosely to include companies or other organizations securely distributing, provisioning and managing applications, generally over the air, on secure elements in NFC mobile phones; or licensing their platforms for this purpose.

N/A: Not available or not applicable.

HEADLINE NEWS

Visa and Chase Seize on Launch of New York City Transit Payments Service to Try to Build ‘Momentum’ for Contactless

NFC TIMES Exclusive Insight – Unlike in most developed countries in Europe and Asia, in the U.S., only a small percentage of the population regularly uses mass transit. But New York City is an exception, with more than 4 billion transit trips per year in the metropolitan area–seven times greater than in the next largest U.S. city in terms of transit use, Chicago.

As Their Resistance Crumbles, Australia’s Big Four Banks have Found that Opposing Apple Pay Too Costly, Despite Tech Giant’s Fees

NFC TIMES Exclusive Insight – Another one of Australia’s big four banks, National Australia Bank, has given in to pressure from customers and has agreed to support Apple Pay.

In-Depth: Ticketmaster Embraces Digital Ticketing to Cut Fraud and Improve Communication with Ticket Purchasers and Fans

NFC TIMES Exclusive Insight – U.S.-based sports and entertainment ticketing vendor Ticketmaster sees its new digital-ticketing technology–supporting bar codes and NFC–as a way to reduce fraud and stay in touch with both ticket purchasers and event attendees.

Japanese Payments Players Expand Support for QR Code-Based Payments

May 20 2019

NFC TIMES Exclusive Insight – Japan’s mobile payments market is expanding, but the talk is not about NFC payments services, such as Apple Pay, Google Pay or the pioneering FeliCa wallet services originally pushed by NTT DoCoMo and rail operator JR East.

Singapore’s Land Transport Authority to Accept Visa Cards for Fares in June

NFC TIMES Exclusive Insight – Singapore’s Land Transport Authority announced today it will begin accepting Visa-branded contactless cards to pay fares on trains and buses starting June 6, only two months after it launched its “SimplyGo” open-loop fare collection service with only Mastercard-branded cards.

Consulting Firm: Not Sure Whether Contactless Card Deployment Will Help or Hurt NFC Wallets

NFC TIMES Exclusive Insight – With U.S. banks planning to renew tens of millions of their EMV credit and debit cards this year with an added contactless interface, industry observers are naturally considering how the rollouts will affect adoption of NFC mobile wallets.

Rio de Janeiro Metro Launches Open-Loop Payments with New Visa Transit SAM

NFC TIMES Exclusive Insight – The Rio de Janeiro Metro has launched its planned open-loop payments service, one of the first Latin American transit systems to accept bank cards–in this case, Visa credit cards­–directly for payment of rides.

In-Depth: Major Pays Wallets Accelerate Support for Closed-Loop Transit Ticketing

NFC TIMES Exclusive – One of the key battlegrounds for Apple, Google and Samsung as they seek more users for their respective Pays wallets is transit ticketing–with all three tech giants targeting both open-loop payments and–perhaps surprisingly–also closed-loop transit cards. (See table below).

Report: Will Deployment of Contactless EMV Cards in U.S. Drive Growth of NFC Mobile Payments? Conclusions Hard to Draw

NFC TIMES Exclusive Insight – With U.S. banks finally beginning to issue dual-interface EMV cards in significant numbers this year and more U.S. merchants accepting contactless and NFC payments, a key question becomes whether contactless card payment will help or hurt the prospects for what has generally been considered as disappointing take-up of NFC wallets.

Half of Face-to-Face Visa Transactions Outside of U.S. Expected to be Contactless Soon

NFC TIMES Exclusive Insight – Half of all domestic face-to-face transactions with Visa-branded cards globally–outside of the U.S.–are expected to be contactless within the next two months, with Visa reporting that contactless technology is maturing in numerous countries worldwide, mainly in Europe and Asia.

Analysis: Canadians Increasingly Pay with Contactless Cards, Although Cash Continues to Play Key Role

Apr 22 2019

NFC TIMES Exclusive Insight – Contactless transactions in Canada topped 50% of all in-store card transactions for the first time ever during the first quarter of this year, said the country’s largest payments card processor, Moneris, this week.

Contactless Card Transactions Could Overtake Taps from NFC Phones ‘Quickly’ in the U.S.: Industry Veteran

Apr 23 2019

NFC TIMES Exclusive Insight – Transactions from contactless bank cards in the U.S. will “quickly surpass” those from NFC phones by the end of 2020, despite cards being rolled out much later than NFC-enabled wallets, industry veteran Randy Vanderhoof, head of the Secure Technology Alliance industry trade group and the affiliated U.S. Payments Forum, told NFC Times.