Tuesday, July 15, 2014

An alternate view on the effects of compulsory SIM unlocking

Well, It’s official. Sōmusho, The Ministry of Internal Affairs and Communications (MIC), will oblige domestic carriers to remove the restrictions preventing the devices they sell from operating with another carrier’s SIM card. The requirement will go into effect sometime during the next fiscal year, which starts from April 2015.

I’ve already made clear what I think will happen, and I can sum it up with one word: NOTHING. I don't fully understand what the MIC realistically can and (more importantly) will do to carriers that fail to comply, and everything that I have seen so far indicates that the MIC is narrowly focusing on the just the SIM card.

The MIC is trying to change the status quo of an entire industry, and I'm not convinced that industry will just happily comply. There are a ton of alternate ways to cripple devices to prevent reasonable exchange between carriers, while still abiding by obligatory SIM unlocking guidelines. This should not be news to the MIC – Docomo does it right now (device-side locked tethering APNs, network-side IMEI filters on data connections, carrier mail that only works with docomo phones).

And let's also not forget that, when forced through arbitration with the MIC to create transparent MVNO guidelines, NTT docomo began employing allegedly fuzzy math, putting MVNOs that use the open route at a financial disadvantage to MVNOs who strike closed-door, old fashioned deals with docomo. (Is it really a coincidence that MVNOs with closed-door contracts appear to have have lower latency and faster speeds?)

An Alternate View

This morning I read this post by Juggly (that's the name of his site but also what I call him), in which he describes what he thinks will be the result. In summary, his opinion is the exact opposite of mine. Juggly has consistently been a good source of information, which has (apparently) caused him some trouble.

I value Juggly's opinion, so below I'll layout the gist of Juggly's post. I am interested to hear your thoughts on where this is going. Basically, this sounds good if you're the type of person likely to buy a phone at a reasonable retail price with no subsidy. If you rely on carrier subsidies, this is probably bad news for you.
  • Rather than focus on locking their stuff down in an attempt to keep customers tied to their networks, carriers will open things up in an attempt to lure customers away from rival carriers.
  • This would be done revamping current services like carrier mail to work on any phone, not just on carrier-branded devices, which is basically the case now.
  • A lot of handset sales will eventually come to be through separate retailers. These will be unlocked and ready to go on any domestic carrier (i.e., the original Nexus sales model).
  • International makers will eventually come to sell phones officially in Japan, reducing costs of handsets traditionally only available in the gray market.

Monday, July 14, 2014

Pepsi × Google × 7-Eleven: ¥100 redeem code for Play Store

pepsi NEX Zero & pepsi special
¥100 code present with purchase at 7-11
Google is currently running a promotion at 7-Eleven (in Japan only) and Pepsi (both the Pepsi NEX Zero and Pepsi Special):

7-Eleven
Their 7-Spot Wi-Fi is good too.
From July 7th to October 31st, PET bottles at 7-Eleven Japan will include a redemption code for ¥100 on their caps. Peel off the sticker on the cap and you're get a code that you can redeem either from within the Play store app(s) on by redeeming at the Play Store at Google's web site.

If you're not a big fan of credit cards, you can also purchase redeem codes denominated in yen at 7-Eleven and most other Japanese convenience stores.

iOS Metro icon
Apple users are not left out
You can use the ¥100 to purchase anything that you would normally purchase from the Play Store. Obviously iOS / Apple iPhone and iPad users won't be able to use Android apps, but Apple users can purchase music, books, and video from the Google Play store.

A warning about currency and credits in app stores

Google Play does not allow you to mix currencies or the "locale" of an account from one country to another country (for example, from Japan to U.S.) until almost everything (not just the billing address and the credit cards) associated with a certain country is unassociated with the account.

Google wallet logo
A fancy name for storing your Play Store balance & cards
Because there's no way to "throw away" money credit associated with your Google Play account, you have to spend MOST of the money accumulated by your account before you can switch your "Google Wallet" to another country by changing your Home Address. Your balance needs to be below these amounts:
  • USD - $10 
  • AUD - A$10 
  • CAD - C$10 
  • GBP - £10 
  • EUR - €10 
  • JPY - ¥1000 
  • KRW - ₩10000 
  • HKD - HK$100 
  • MXN - Mex$100 
  • CHF - CHF10 


What exactly are these "special" soft drinks anyway?


厚生労働省許可 特定保健用食品
"Approved by the MHLW
as a Designated Health Use Food/Drink"
Both of these versions of Pepsi are zero calorie versions. If you don't know what the "Special" is, it is one of the series of drinks in Japan marked as トクホ {tokuho}, which is shorthand for 特定保健用食品 {tokutei hoken-yō shokuhin} (food and drink specially recognized for health care use) because it has デキストリン {dekisutorin} (dextrin), which is recognized by the 消費者庁 {shōhisha-chō} (CAA; Consumer Affairs Agency of Japan) as being scientifically proven to decrease blood glucose levels and reduce the absorption of fat; in other words, reducing digestion (「脂肪の吸収を抑える」 {"shibō no kyūshū o osaeru"}). There are a bunch of drinks in Japan advertising this and it's mark. Pepsi NEX's biggest competitor is probably Kirin Mets Cola.

Thursday, July 10, 2014

Paying for things in Korean Won cash using a Japanese Galapágos NFC phone

Android mobile cashbee app icon
mobile cashBee for Android; not just an app for Korean carriers and phones
In the previous posts, I covered how to use your Japanese phone in lieu of traditional "plastic" when traveling overseas outside of Japan. Using credit cards are convenient, especially for overseas travel where a lot of credit cards have mechanisms for after-the-fact disputes and fraud protection. However, depending on your card, you can also be charged fees for non-domestic transactions, and the just-in-time exchange rate between the card's currency and the local currency may not always be in your favor.

This begs the question: are there any countries like Japan where one can pay for things using pre-loaded cash (other than Japanese Yen) stored inside the Japanese phone's NFC?

As a matter of fact, yes: the Republic of Korea.

Il-76, Il-62 & Tu-204
No, not this Korea.
As any tourist or resident in Japan knows, having a NFC card or phone to get around the city by subway is super convenient, sparing you the details of having to understand fare charts for complicated transportation systems. The card enables you to slip in and out of the stations without worrying about whether you've underpaid or overpaid for your fare; you can focus on catching the correct train at the correct time. Additionally, the touch-and-go payment allows you to quickly grab a quick snack at a nearby kiosk without having to fumble with currency you're not familiar with.

The best part is: the technology is free with no fees or a required signup *. If you bought a card in Korea, you'd have to pay a deposit fee for the card (which is refunded when you return the card).

As South Korea is one of the closest countries to Japan, it is one of the easiest (and cheapest) international destinations to visit. Before you visit, it'd probably be wise to set this app up if your phone specifications qualify.

* Of course, using the app (rather than a charging station) to reload your NFC with more ROK won causes packets to be sent, and if you're overseas, depending on your broadband or Wi-Fi access (the app, unlike iD, works with either), might be significant. Additionally, your credit card company or bank, not the app, might card you a transaction fee for moving money into the NFC chip.

Competing Technologies in South Korea


Like Japan's pre-loaded cash options (Edy, nanaco, WAON, Suica), South Korea also has a variety of NFC solutions for paying via cash:

many cards are branded
t-money card (티머니 카드 {timeoni kadeu})
In the past, t-money was one of the first major NFC payment cards (introduced around the year 2000) and it is the biggest and still the most popular: primarily used in Seoul. If you were outside of Seoul, you used cashBee. Similar to Kantō (East Japan)'s Suica/Pasmo card vs the cards in Kansai (Western Japan). Nowadays, there's not as much difference geographically as to whether a card is better or more accepted. A big drawback for t-money, from a foreign user's point-of-view, is the proprietary solutions for mobile use: In order for a South Korean resident to use t-money with his phone, they must apply for a non-standard (not a NFC Type A/B) SIM to insert into their phone.
mobile cashBee (모바일 캐시비 {mobail kaesibi})
In the past, cashBee was more predominant outside of Seoul, but this is no longer the case. cashBee is rapidly catching up in popularity and places where it is accepted thanks to its major corporate backing; cashBee is issued my the big Korean corporation Lotte, so much like how anything associated with JR East (such as atre malls) will accept Suica, anything associated with Lotte in Korea will probably accept cashBee. Relatively new, cashBee is an evolution of the Korean NFC system "Mybi", which began in 2000, and all the systems that were compatible with it such as KB Free Pass and KTX Family Cards. The old eB cards (the "B" is where the "Bee" in cashBee came from), UPass, and Mybi were acquired and evolved into cashBee in 2010. The Mybi family of cards is still accepted in places, but the technology has been deprecated.

These are the two major payment systems in use today. Much like Japan, bigger companies are acquiring and re-branding other companies and technology all the time, so there are lots of other minor cards and special limited edition cards which are compatible with the two major ones listed here. And there are other, older systems which have fallen into disuse. Talking about all of them here, though, is outside of the scope of this blog and article. As a tourist, all you need to know is that the above two comprise most of the major offerings in 2014.

How to set up your phone to use it

cashBee, although very similar to Japanese preloaded cash systems used on FeliCa only, is a NFC Type A/B system. This means the same hardware/software requirements are needed that you would need for paying for things overseas with Visa/MasterCard payWave/PayPass:

Desired requirements for maximum usefulness:
  • A Japanese phone with hybrid FeliCa/NFC hardware.
  • A USIM that supports NFC Type A/B
Note that you can still install and use the cashBee app even if you do not meet the above requirements. However, the app will only work in "coupon mode", in that it will show you coupons you can use in Korea at participating cashBee stores, but you will not be able to purchase anything using your phone.

And even if you don't have a credit card, you can still "charge" your cashBee (provided you've launched the app and it has installed itself in the NFC area of your USIM) at vending machine like "charging stations" (or at convenience stores) throughout major cities in South Korea.

Both the NTT version and the KDDI version allow charging of the phone with Korean Won via credit card. The credit card will be billed in Japanese Yen.

Softbank's dog mascot urinating at a press conference
Softbank's mascot, otōsan, can't wait.

Softbank

There is a version of cashBee for both docomo and KDDI/au. The software is identical except that currently the au version is the only one that supports loading the cashBee via Japanese bank 振り込み {furikomi} (domestic wire transfer).

A Softbank version of the app was scheduled to be released on June 30, 2014, but it has been delayed. As of July 10, 2014, it has not yet been released yet.

iPhone and other unsupported app platforms

pink iPhone 5c with a NFC sticker on the back
The speed of Steve Jobs,
spinning in his grave
25cm² NFC adhesive sticker
You have a choice of designs to foul your phone
In addition to key chains and other non-traditional (meaning non-rectangular plastic credit card) shapes, cashBee and other forms of e-Money in Korea are available in adhesive sticker form, which you can attach to the back of your phone and pretend you have NFC capability.

You may have seen Japanese iPhone users do something similar to this by buying a case for their iPhone (so you can't really tell it's an iPhone anymore) and inserting their Japan mass transit IC card in between the back of the phone and the case that covers and protects the back. In fact, many iPhone "bumper" cases are sold which feature special slots where you can insert this card and pretend you have an Android phone.

Don't put one of these stickers on a phone that already has NFC and/or FeliCa: by design, NFC and FeliCa won't work in combination with other cards or stickers at the same time. They cancel each other out.


Where is cashBee accepted?

cashBee logo
Newer but heavily backed
T-Money logo
Older but more established
T-Money is the older, and thus more widely accepted, form of e-Money in Korea. However, cashBee is catching up extremely rapidly. While it's unlikely you'll be able to use cashBee at old fashioned mom & pop restaurants or shops or very high end places, most of the places in major urban areas that offer common consumer day-to-day goods and services offer support for at least one -- and often more than one -- form of electronic cash payment.

Public transportation (subway and buses)

The NTT/docomo version of the cashBee application got the ability to touch & go with the subway and bus systems this summer (2014).

The KDDI/au version of the cashBee will get the ability to tough & go with the subway and bus systems this Autumn (2014).

Like most subway and train systems in Japan, most of the subways in Korea charge based on the the distance you travel, and buses charge a flat fee.

Taxis

Gangnam Style
Probably has a cashBee in his pocket.
Taxis in the following areas of Korea currently take NFC payments:
  • All of 서울 {Seoul}, including:
    • 明洞/명동 {Myeong-dong}
    • 江南/강남 {Gang-nam}
  • 釜山/부산 {Busan}
  • 済州/제주 {Jeju}

Additionally, the taxi companies in these smaller areas also currently accept cashBee:

Korean Taxis
"Deluxe" taxis are black with a yellow sign on top.
  • 京畿/경기 {Gyeong-gi}
  • 仁川/인천 {In-cheon}
  • 江原/강원 {Gang-won}
  • 忠南/충남 {Chung-nam}
  • 蔚山/울산 {Ul-san}
  • 慶北/경북 {Gyeong-buk}
  • 慶南/경남 {Gyeong-nam}
  • 光州/광주 {Gwang-ju}

However, just like in Japan there is an occasional cab that does not accept credit cards or FeliCa payments, there are hired drivers in Korea that do not take anything other than physical cash. So be sure to check before you start the fare.

Convenience Stores

7-Eleven vs. MINISTOP
Residents of Japan are probably familiar with
  • 7-Eleven
  • MINISTOP
which are ubiquitous in Japan. They are also all over Japan. In addition to making purchases, you can also charge (add money) to your NFC card or phone with cash via the register without using a unmanned charging station.

In addition to the two above convenience stores, cashBee is accepted in at least the following "combini":
  • Buy the Way (a Lotte 7-Eleven franchise)
  • CU
  • GS25
  • StoryWay

Fast Food & Family Restaurants


『Q段チーズバーガー』
The Lotteria Japan promotional {}-level cheeseburger
Residents of Japan are probably familiar with:

  • Lotteria: a fast food burger joint by Korean über conglomerate Lotte)
  • Baskin Robbins: better known by its official name in Japan as 『サーティワン』 {"sāti wan"} (31)
  • Krispy Kreme Doughnuts: seems to do better in Asia than its native North Carolina
  • Dunkin' Donuts: the smaller Massachusetts based rival to the more popular (in Japan) known affectionately by its Japanese nickname of ミスド {misudo} (Mister Donut).
and Americans are probably familiar with:
In addition to the above, cashBee is also accepted at:

Lotte affiliated Shopping (Department Stores, etc.)

Lotte Department Store (Myeongdong)

Entertainment (movie theaters, etc)

Sajik Baseball Stadium

Other (Vending Machines, Universities, Toll Bridges & Tunnels)

Lotte "Seven Star" Vending Machine
Chilsung Cider tastes like Sprite/7-Up.

"Recharging" your cashBee

MasterCard and Visa logos
No JCB or AMEX yet.
The convenient part of the Japanese app is it's ability to load money in by billing your credit card. Currently, only MasterCard and Visa are accepted.

No fees are assessed on the cashBee side; whether your card charges you a fee or not depends on your card.

You will be billed in Japanese yen based on standard exchange rates for the day between Korean Won and Japanese Yen.

South Korean Won bills and coins.
Money used on the other side of the Sea of Japan ("East Sea")
The amounts you can choose to load on the NFC UIM Card are:

  • ₩10,000
  • ₩20,000
  • ₩30,000
  • ₩40,000
  • ₩50,000
  • ₩100,000
  • ₩300,000
  • ₩500,000
The credit card credentials are not saved, so your will need to enter the card number, cardholder name, expiration date, and CVC number every time.

If you don't want to charge your NFC UIM by using the internet (perhaps because you are already overseas your international roaming or Wi-Fi is too expensive or limited), you can find a convenience store or charging station machine and charge it with (Korean Won) cash.

Direct Bank Transfer with KDDI/au

au by KDDI
Something au does that DCM can't
Transferring money into your UIM Card via a bank transfer is only slightly more complicated than transferring via credit card; both transactions are instantaneous. Depending on the terms of your credit card or bank, one method may be more advantageous than the other (depending on limits, fees, etc.)

Currently, only three "net banks" (banks without physical branch locations and tellers and vaults) are supported:

Changing phones and limitations

From the application, the minimum amount you can charge (with Korean cash) your NFC UIM with is ₩10,000. The maximum is ₩500,000.

Similar to how most 電子マネー {denshi manē} (e-Money) systems in Japan limit you to a maximum of ¥50,000 per system (for sanity and safety and fraud concerns), cashBee limits you to a maximum charge of ₩500,000.

Money in the UIM card has an expiration date of 5 years from the last use or charge. If not used or charged after five years, the loaded money is voided and lost.

One point Korean/Japanese/English language lesson

『영어완전정복』 "Yeongeo wanjeonjeongbok"
A great 2003 romcom about
South Korea's English complex
In Japanese, the foreign loanword 『チャージ』 {"chāji"} ("charge") is usually used with the nuance of loading money onto a contact-less card or FeliCa/NFC phone; a fancy more specific loanword for the proper/generic Japanese word 入金 {nyūkin} (insert/receive funds/payment).

However, in Korean, the same imported English loanword has the nuance/meaning of "charging [the battery of a phone etc]".

This may lead to a misunderstanding if you ask to "top up/off" (British English) or "load your prepaid card" (American English) your cashBee at a convenience store in South Korea, as charging the batteries of mobile devices actually is a service they provide at many convenience stores in Korea.

It shouldn't be too hard to get your point across by saying "cashBee" and pointing to cash that you want put on your device, though.

Here's how to say

"Please reload 5000 won onto my mobile cashBee."
모바일{mo-ba-il} 캐시비에 {kae-si-bi-e} 5000원 {o-cheo-nwon} 충전해 {chung-jeon-hae} 주세요 {ju-se-yo}

Monday, July 7, 2014

Part 2: How to pay for things overseas using your Galapágos Android NFC and PayWave

This Verifone terminal does them all
In the previous article I talked about how to pay for things outside of Japan using a Japanese phone and a NFC terminal. In particular, using iD required at least two things:
  1. a docomo phone (since the iD service, while available for a variety of plastic credit cards, is only currently offered on docomo as of July 2014)
  2. a Japanese MasterCard that supports PayPass
But what if you have a Visa card? What if you have your phone/carrier isn't docomo? There are options.

Minimum Requirements for any overseas NFC Use


First of all, you will still need the bare hw/sw requirements that were mentioned in more detail in the previous post:
  • A docomo/au/Softbank phone that supports NFC types A/B/F (NFC Type F is the same thing as "FeliCa")
  • A USIM that supports NFC Type A/B. If you bought your phone recently your phone probably already has one of these and you don't need to talk to your carrier for an upgrade.
  • Your NFC R/W P2P needs to be "off" when using payment systems, which expect the NFC to be in client/master mode (the phone is the "client," the Point-of-Sale terminal is the "master")

Bank Provided Apps for Japanese Galapágos Phones

Finally, you will need a bank that supports NFC credit cards through its own app (or one that it partners with). Currently, there are two credit card companies that offer overseas credit card ability: Sumitomo-Mitsui Visa (PayWave) and Orico Visa (PayWave) & MasterCard (PayPass). Orico was the first in Japan to offer Visa's payWave.

三井住友VISAカード VISA payWave
Sumitomo-Mitsui's Visa PayWave
Orico VISA payWave / MasterCard PayPass
Orico's payWave/PayPass


These applications can be installed on compatible docomo, au, and Softbank phones. If you have a Orico MasterCard, you can choose to use the Orico app to set it up, or choose the iD app.

Just like the instructions in the previous post, simply possessing the correct card and a working app/phone is not enough; you need to contact your credit card company (either at application or afterwards) and tell them to you wish to use this functionality, and they will send you a one-time use "access code" and password to activate it.

As PayPass and PayWave services are still very new in Japan, it is likely that additional banks and cards will offer this service in the future.

VISA payWave accepted mark
Visa payWave (& most probably MasterCard payPass;
maybe American Express expresspay/Discover zip OK

Card Compatibility at the POS Terminal

VISA payWave can be used almost anywhere MasterCard PayPass is accepted, especially in the United States. If you see the payWave mark, you can almost always use PayPass/MasterCard as well, the same way how almosty all stores that accept Visa also accept MasterCard. There are some rare exceptions.

American Express' NFC service is called "expresspay". It too can be used where the "wave" mark is present and the merchant accepts it.

Currently no American Express cards issued by Japanese banks support expresspay (that will probably change in the future).

Discover Card's NFC system is called "zip". While Discover Card is not issued in Japan, Japanese Diner's Club and JCB cards can be used wherever Discover is accepted and vice-versa (normally there will be a small Discover logo on the back of these Japanese cards).

NFC Credit Card Android Apps: set it up then forget/delete it


One does not simply "Set It And Forget It"
A dissenting opinion
A note about all the Android apps: The iD App, Orico NFC Service, and Sumitomo-Mitsui Card Visa payWave apps do not have to be on your phone at all time to use NFC. These apps are used to "set up and program" the data block(s) on the UIM card, as well as query it (find out the card number, name, expiration date, etc) stored on it.

Deleting the Android app that initialized the NFC type A/B/F record does not delete the corresponding NFC data.

However, for some FeliCa/NFC apps, deleting the app — or doing a full reset of the phone, wiping user data — then re-installing may cause the new instance(s) of the app to not recognize or locate the old data. This depends on how the app is designed. Poor software design, yes. But caveat emptor.

Don't forget to assess your personal balance between convenience and risk and set your phone's security (and your NFC's security) appropriately.

Non NFC Credit Card Android apps: useful for balance, transaction history, etc.

One app to set it (NFC), another app to check it (cloud).
On the other hand, keeping the app around, especially for NFC apps that have a balance on them (pre-loaded cash or points), is handy so you can check to see how much money (often through custom Android widgets on your home screen) you have left and to top off the balance with more money. You can do this at specialized terminals and ATMs throughout the country too. As a credit card has no "balance" on the chip, these apps don't have as much value. There may be a side function (or a completely separate app for your credit card, or a mobile web site) that checks how much credit you have remaining. For example, Sumitomo-Mitsui has the Vpass app to check its credit card status and transaction details, American Express Japan has an app to check its Japan based AMEX cards, and Rakuten Card has an app to check its cards' balances and activity.