APPLE PAY VS JAPAN’S OSAIFU-KEITAI

APPLE PAY VS JAPAN’S OSAIFU-KEITAI

Eurotechnology Japan is led by its founder Dr. Gerhard Fasol. He has worked in and with the academic, research, and business communities of Japan’s high-tech sector for over 25 years. Eurotechnology Japan is a technology-focused business development, strategy, and M&A advisory and implementation firm.

• • •

What can we learn from 10+ years of mobile payments in Japan?

Apple Pay mobile payments start on September 19, 2014

Japan’s Osaifu keitai mobile payments started on July 10, 2004, after public testing during December 2003 – June 2004

Two different types of Docomo‘s “Osaifu-Keitai“, manufactured by Panasonic and by SONY, were publicly tested by 5000 customers between December 2003 – June 2004. Docomo’s Oseifu keitai mobile payment system builds on SUICA NFC stored fare cards, which JR-East brought to market in Tokyo on November 18, 2001, after long years of development and public testing, where the author of this newsletter was one of the testers.

Thus Apple-Pay was developed building on almost 15 years of NFC payments in high volumes in Japan.

Therefore, those who wish to make predictions about how the Apple-Pay market is likely to develop can use the experience gained during 15 years in Japan.

There are also some open questions, which will probably be answered after we can all check out Apple-Pay after September 19, 2014. One point which is very important is the speed of transactions – especially in transport applications such as the London or Tokyo Subways.

The speed of NFC mobile payments – and why does it take 10 years to reinvent the wheel? and: what is the speed of Apple-Pay transactions? faster than 100 milliSeconds? or 500+ milliSeconds?

On July 17, 2012 The Wallstreet Journal reported, that as far as Transport for London is concerned, there is no viable mobile payment solution available at this time, because to the knowledge of Transport for London at that time, mobile payment transactions take longer than 500 milli-seconds, which is too slow for Transport for London requirements (e.g at Picadilly station during the rush hour).

Interestingly, in Japan “mobile SUICA” payments have been used in Tokyo successfully since January 28, 2006 at the world’s busiest railway stations including Shinjuku and Shibuya – arguably more busy than Piccadilly Circus in rush hour, with transaction speeds faster than 100 milli-seconds – according to The Wallstreet Journal, London Transport did not even know about this.

Read in more detail about this issue in our blog here: “Mobile payments: 10 years to reinvent the wheel?"

Therefore one obvious question we have about Apple-Pay is whether the speed of Apple-Pay transactions is in the 500+ milli-second range – unacceptable for Transport for London, or faster than 100 milli-seconds – as is Tokyo’s state of the art since January 28, 2006… I guess we will soon learn the answer to this question.

Why is it that Japan does not capture the global value which Apple and Apple-Developers will create and capture now?

Japan developed mobile payments, e-cash, credit cards in mobile phones and at least as much functionality as Apple-Pay and an open API and a mobile payment and e-cash developer ecosystem over the last 10-15 years.

Why does Japan leave all the global value on the table for Apple and Apple developers?

Actually, I personally had discussions over the last 15 years will all major players in Japan’s mobile payment and e-cash field, crowned by 1-1 discussions with Docomo’s CEO at that time – Dr. Tachikawa – I wrote about one of these meetings in The Wallstreet Journal, of course without mentioning the details: “Wallstreet Journal leadership question of the week – Japanese leadership?"

Essentially my conclusion at that time, and today is, that Japanese companies never showed any interest at all in developing global business to capture the global value of mobile payments, e-cash and the related businesses. Japanese companies did not even try, and were not even interested in discussing the globalization of mobile payment and e-cash technologies and business models. 

All opportunities are not lost of course for Japanese companies in the mobile payments and e-cash fields, but most if not all of Japan’s early-mover advantage has evaporated with Apple-Pay.

In business, sometimes the second or third mover can be commercially more successful than the first mover, but it will be very very hard even for a united Japan Inc to stand up to Apple.

• • •

Copyright ©2014 ·Eurotechnology Japan KK·All Rights Reserved
 

Source: 

Related Articles

Reno J. Tibke - June 07, 2014

JTFF - Japanese Technology from the Future Friday! - AkihabaraNews.com

This week it’s octopedal Japanese electronics conglomerate OMRON getting its

Japanese Technology from the Future Friday! - AkihabaraNews.com

This week we’ve just one little nugget to rollout: You might have heard that SoftBank is taking Sharp’s flagship smartphone to the U.S., but what you might not know is that Sharp might have the company of a much larger brother.

• • •

Terrie's Take - AkihabaraNews.com

Terrie’s Take is a selection of Japan-centric news collected and collated by long-time resident and media business professional Terrie Lloyd. AkihabaraNews is pleased to present Terrie’s learned perspective; we all could use another take on the news - here’s Terrie’s:

One of the Gyoza on the iPhone case shows inside stuffing that looks so juicy, and the sauce of the smartphone stand looks like real liquid goodness.
Sharp Launching Robot Smartphone "RoBoHoN"
A robot-style smartphone "RoBoHoN" will be released in early 2016. It's invented by Sharp and a robot genius, Tomotaka Takahashi. In addition to provide basic smartphone features, RoBoHoN is able to talk, walk, dance, and recognize human faces. It can also become a projector.

au announced that they are going to release Sony's new Android 4.4 smartphone Xperia Z3 SOL26 in late October.

Xperia Z3 SOL26 has a 5.2-inch display (1920×1080), 2.5Ghz quadcore processor, 3GB RAM, 32GB ROM, 20.7MP main camera, and 2MP front camera. It weighs 152g and is only 7.3mm thick. It is IPX5/8 waterproof and IP6X dustproof, and supports NFC, mobile wallet, and Wi-Fi.

iPhone 6 Hyper-Anticipation: It Doesn't Mean What You Think it Means [GUEST ESSAY] - AkihabaraNews.com

[The following is very unique opinion essay from a very non-traditional Contributor: AkihabaraNews editor Reno J. Tibke.

NTT docomo Unveils Winter & Spring 2015 Products and Services - AkihabaraNews.com

Editor Yoriko attended NTT docomo’s Winter/Spring 2015 Product & Service announcement event held Tuesday here in Tokyo. The complete event gallery is here.

Prosthetic Thumb Conquers Giant-Screened iPhone 6

Reminder: Thanko's Got Your Back
(in the form of some extra thumb)

Your smartphone will turn into a digital microscope with Thanko's new Smartphone Microscope.

It is very easy to use. What you have to do is just attach the Smartphone Microscope with the accompanying clip onto any smartphone or iPhone and then you can view a magnified image of an object through the smartphone's screen. It can zoom from 60X up to 100X.

App-Enabled Geiger Counter for Smartphones
Okay, we were skeptical on this one at first glance, but these devices do exist: what we’ve got here is a plug-and-play Geiger counter that fits any smartphone headphone jack (iOS or Android - no love for Blackberry until they finally give up and accept their Google overlords). It’s definitely the smallest we’ve ever seen.
Sharp Launching Robot Smartphone "RoBoHoN" [TOP 15 of 2015]
[#8 of 2015's Top 15 Articles] A robot-style smartphone "RoBoHoN" will be released in early 2016. It's invented by Sharp and a robot genius, Tomotaka Takahashi. In addition to provide basic smartphone features, RoBoHoN is able to talk, walk, dance, and recognize human faces. It can also become a projector.

Reno J. Tibke - November 01, 2013

Apple iPhone Huge Sales - AkihabaraNews.com
However we decide to categorize the devices, here in Japan, there is clearly one smartphone to rule them all. For more than 3 years now, with a consistently growing marketshare, iterations of Apple's flagship product have been the best selling phones in Japan - and not just among smartphones - that's for the entire mobile telecommmunications market.

Google unveils Japanese pricing for Nexus 6 on Japanese Google Play 
The release date hasn't been stated clearly. It says soon-to-be-released.

Pages