Japan: KDDI to Launch Multiapp NFC Trial in 'FeliCa Country'

 

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

 

Tokyo Japan
Scope: 
Trial
Launch: 
May 2010
Main Application: 
Payment and ID
Mobile Operator: 
KDDI
Service Provider (application): 
Orico (MasterCard PayPass)
Service Provider (application): 
Jibun Bank (m-banking, other)
Service Provider (application): 
Credit Saison (PayPass acceptance)
Service Provider (application): 
Aiwai Card Services (e-money)
Service Provider (application): 
Toho Cinemas (event ticketing)
Service Provider (application): 
All Nippon Airways and Japan Airlines (check-in or boarding, likely)
Service Provider (application): 
KDDI or NTT Data (likely) (Japanese contactless driver’s license)
Service Provider (application): 
Toyota Motor (automobile services)
Service Provider (application): 
Other
Merchants: 
N/A
Users: 
N/A
NFC Handsets: 
Prototype
TSM*: 
Gemalto
Secure Element: 
SIM
Other Vendors: 
NTT Data (driver’s license implementation, other), Toshiba (SIM), Gemalto (SIM), MasterCard Worldwide (PayPass application), Hitachi (applications), Farm Tech (applications), Normura Research Institute (consulting), Dai Nippon Printing (tag system, likely), Denso (readers), Toppan Printing (other)

In it’s planned eight-month trial, Japan’s No. 2 mobile operator, KDDI, has announced it plans to offer a range of services to trial participants–many similar to those already rolled out in Japan using nonstandard FeliCa technology. But the applications planned for the trial–ranging from payment to cinema ticketing to mobile ID using a test version of Japan’s contactless driver’s license–would comply with standard NFC technology. That includes supporting ISO/IEC 14443 communication specifications. Tag reading and Bluetooth-based applications are also planned for the pilot.

NFC Times Take: 

With the planned trial, KDDI steps up its push for NFC in Japan, opposing rival NTT DoCoMo, the main promoter of Sony Corp.’s FeliCa contactless technology that is present in more than 60 million wallet phones in circulation in Japan. KDDI and Japan’s No. 3 mobile telco, Softbank Mobile, believe a move to standard NFC could increase the variety of applications and encourage more use of contactless-mobile services by subscribers, including payment and ticketing. KDDI believes, for example, that government ID applications, such as the one used on Japan’s contactless driver’s license cards–is a natural fit for phones. Government contactless applications follow international standards, not FeliCa, though it’s unclear yet whether the government and especially subscribers want ID on their phones. KDDI and Softbank think NFC also would also give them a better business model compared with the FeliCa wallet technology, which is controlled by DoCoMo and Sony. But with hundreds of thousands of transit and payment terminals supporting FeliCa in Japan, this NFC trial–while much more ambitious than the few other NFC trials KDDI and Softbank have held–is just a small step toward the rollout of NFC. Such a rollout depends on a shift in strategy by DoCoMo. 

 

 

 

* 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

In-Depth: Tokenization Figures Demonstrate Majority of Mobile Payments Conducted Online

NFC TIMES Exclusive Insight –  Recent research and forecasts have confirmed what industry observers already knew: Despite concerted efforts by the Pays wallets to gain widespread use of mobile payments in the U.S. at the physical point of sale, the large majority of mobile payments are conducted online, not by tapping NFC phones or wearables in stores.

Visa and Mastercard Forecast More Growth in Contactless in U.S., Spurred in Part by New York Fare Payments Service

NFC TIMES Exclusive Insight - The heads of the two largest payments networks in the U.S., Visa and Mastercard, predict strong growth for contactless payments in the U.S., with Mastercard CEO Ajay Banga noting that 70% of U.S. Mastercard-branded cards in the U.S. are coming up for reissue over the next 12 to 14 months, and most of these cards will be issued with a contactless interface. A large number of Visa-branded cards will be reissued with a contactless interface during that period, as well.

Transport Officials in Sydney See Growing Demand for Contactless Fare Payments but Have No Plans to Retire Closed-Loop Opal

NFC TIMES Exclusive Insight – Transport officials in Australia have released figures on use of contactless payments in Sydney and New South Wales, showing that customers tap their contactless credit and debit cards and NFC devices for an average of 1.5 million transactions per week, accounting for a relatively small but respectable number of transactions.

Insight: Moovit and Cubic Betting that MaaS Can Help U.S. Transit Agencies Regain Lost Ridership

Jan 24 2020

NFC TIMES Exclusive Insight – With public transit ridership decreasing in most large U.S. cities over the past five years, transit authorities are more open to becoming part of Mobility-as-a-Service platforms, which could potentially increase ridership for their rail and bus networks while offering customers options for the first and last mile. 

Philadelphia Transit Authority Confirms Plans for Launch of Open-Loop Payments after Delays

NFC TIMES Exclusive Insight – The Southeastern Pennsylvania Transportation Authority, or SEPTA, in Philadelphia plans to introduce open-loop payments of fares, with a pilot scheduled for around June, a spokesman confirmed to NFC Times. It makes SEPTA part of a small but growing number of U.S. transit agencies that are accepting payments of fares from contactless bank cards and NFC wallets or are planning to do so.

Contactless Payments of Fares Gets Slow Start in Miami, According to Figures

NFC TIMES Exclusive – Take-up of open-loop contactless payment of fares in Miami-Dade County, Fla., has been slow so far, more than four months after transit

Mobility as a Service Continues to Get Rolling with Uber Expanding Service to Second U.S. City

NFC TIMES Exclusive Insight – Mobility as a service is expected to reshape the traditional transport industry, and while it is just getting rolling, the pace is starting to pick up. The latest bit of momentum came this week when global ride-hailing service Uber announced it will enable mass transit riders to buy and redeem tickets from its app in a second U.S. city, Las Vegas.

Contactless EMV Card Rollout in U.S. to Pick Up Speed in 2020, but Shape of Adoption Remains Unclear

NFC TIMES Exclusive Insight – With contactless EMV cards expected to have a significant footprint in the U.S. in 2020, the debate continues over whether the rollout will promote or harm take-up of NFC mobile payments and whether contactless open-loop transit payments will make a real impact on use of contactless at the retail point of sale.

More Open-Loop Transit Payments Services to Launch in Taiwan

Dec 24 2019

NFC TIMES Exclusive Insight – Taiwan’s airport train service will begin accepting Visa- and Mastercard-branded credit cards starting next month, making it the second mass-transit service on the island nation to support open-loop payments for fares.

In-Depth: China Moving Forward On Face Payments of Transit Fares, Despite Some Hesitation by Users of Technology

NFC TIMES Exclusive Insight –  More and more Chinese cities are trialing use of facial recognition technology for transit ticketing, a development that could enable users to avoid either cards or smartphones to pay fares on subways and other modes of transit.

Apple Launches Express Transit in London; Mobility Service also Adds NFC Payments Feature in Apple Wallet

NFC TIMES Exclusive Insight – Apple has expanded its Express Transit service to another major market, enabling Apple Pay users to pay for fares on Transport for London-run trains and buses without first authenticating themselves on the NFC devices.

Analysis: Outlook Remains Dim for Bank Mobile Wallets as Another Major Bank Plans to Shut Down its Wallet App

NFC TIMES Exclusive Insight – Major Dutch bank ABN Amro will discontinue its NFC-enabled mobile wallet in January, a little more than three years after launching the app in late 2016, with the bank acknowledging that few customers use the service.