How Apple is TAKING OVER Japan 🇯🇵

How Apple is TAKING OVER Japan 🇯🇵

– Hey, guys. This is why Apple Pay is
all that Ken talks about every day at the office. – It’s the future.
– Oh my, – It’s so easy. – You have to share my pain, though. – What do you mean? (beep) I think it’s genuinely the best thing that Apple’s doing right now. – Whoa. – Like, low key.
– Whoa. – Like, very low key. One of the main reasons
as to why I like Apple Pay is because I legitimately
use it on a daily basis, especially now that more and
more places are accepting it. This means carrying
around less credit cards and, well, taking around more
receipts and stamp cards. Not only are more and more
businesses taking Apple Pay, but as of late, point of sale NFC readers are getting faster and more consistent. I’m finding myself fumbling
with my phones less and less since it just works super well now, especially for more mundane
transactions, like transit, the dream of leaving your wallet at home is coming closer and closer to reality. – So, when we thought about Apple Pay, we really thought broadly
about wanting to do services that replace the wallet. – [Ken] This is Jennifer Bailey, a VP at Apple that oversees Apple Pay, chatting about it at a
conference talk in 2018. – It seems like the big opportunity here is to disrupt the credit card industry. – We don’t sit around and think about, oh, what industry should we disrupt, we think about what great
customer experiences can we develop? (record scratches) – [Ken] Wait, Apple
doesn’t want to disrupt the credit card industry? – We’re introducing a brand
new service, Apple Card. (audience applauds and cheers) – [Ken] Okay, there
might be some conflicting PR speech going on here,
but I think what Bailey says in this chat has some
merit on the business end that anyone can understand. – It’s all actually about making
people love their iPhones. That is what, why we are doing what we do. – So like, what do you
think about all this, because I think both of
us use Apple Pay a lot. – If you can leave your wallet at home and have everything on one device, you know, granted it’s safe
and you know that the downsides are pretty minimal, it’s a
pretty interesting proposition and I think, I mean, Apple
more than anyone else is all about just that
one device life, right? And that one thing that can do everything. Regardless of whether
Apple is trying to disrupt the credit card industry or not, both the Apple Card and,
specifically, Apple Pay are at the very least,
the companies answer to improving how we pay. And that’s important because
at the end of the day, killer software and
services, like Apple Pay, are what make that sweet, sweet money. (jazz music) Nothing else has shown me how much easier Apple Pay makes things more than being here in
Japan and using this. Suica is a prepaid transit tap card that people use here in
Tokyo to get around the city. And when Apple added it to
its list of compatible cards on Apple Pay almost three years ago, it was low key a really big deal. To understand why, it’s
important to look at the scope of Suica’s importance. – (speaking in Japanese) – Suica is universally accepted across all major rail networks in Tokyo, but is primarily overseen by JR East, a major rail company that
operates some of Tokyo’s busiest rail lines. The company’s most recent report states that there’s 75.8
million physical and virtual Suica cards in circulation. Whoa. Considering the population
of Greater Tokyo is estimated to be at
around 39 million people, it can be inferred that
Suica is a vital part of daily life in Tokyo since a majority of the population commutes. – Are we gonna just
acknowledge that this is all just a ploy because you wanna
shout out, your This Is episode all about trains in Japan? – I mean, the boss-man isn’t wrong. Because Japan, urban commuting
is a huge part of daily life. It’s hardly surprising
that trains, countrywide, average about 16 million rides a day, or 6 billion rides a year. And with certain stations,
such as Shinjuku, that’s behind me, servicing
as much as 3.5 million passengers daily, and some of the city’s other major hubs numbering
relatively close, Suica is the key to preventing bottlenecks of commuters at the station gates, in that it’s the fastest
transit tap card in the world. Physical Suica cards are one thing, but putting it in phones is a whole other. Let me explain. So far in the story, we have Apple Pay that aims to eliminate
your wallet from existence, and Suica, a transit tap card on steroids that’s used by a majority
of Tokyo’s commuters. But there’s actually one more
integral piece to the story, and that is Felica, a
special flavor of NFC developed by Sony, and
is the tech that makes up the backbone of Suica. – [Narrator] And data reading and writing can be carried out in only 0.1 seconds. – Physical Felica smart
cards are one thing, but putting it on phones is a whole other. Now, the Japanese have been
doing contactless payments on mobile phones as far back as 2006, but in typical Sony fashion,
putting Felica functionality on a phone involves a proprietary chip, emphasis on proprietary, as well as software that
the company codeveloped with Japanese cellular
carrier, NTT Docomo. So this not only means that ordinary NFC on most phones here in the west
won’t fully work with Suica, but say if I decided to be a
phone manufacturer tomorrow and wanted to add Suica compatibility, I’d have to write Sony and friends a big fat licensing check. The catch 22 here is that while it is a great selling point for consumers, adding Felica to phones
generally alienates products to the Japanese market. Let’s put it this way. If a global manufacturer produces phones outside of Japan, why sell a feature that makes a phone more
expensive to produce if it’s not going to be used a lot? It’s effort, resources spent,
and a dig to the profit margin if you put features that only appease a relatively small bucket
of your potential customers. It is precisely for this reason, too, that Google sells exclusive
SKUs of the Pixel 3 and 3a to Japan, just to include
its Japanese region-specific version of Google Pay
that supports Felica. – [Commercial Voice] Google Pay Day. – But that is how Apple
sees an opportunity. On an international scale, starting with the iPhone 8 and iPhone X,
and the Apple Watch Series 3, the company put forward
the effort and resources to include a universal NFC chip, and developed the software
from the ground up that allows for Felica functionality, in addition to the NFC
stuff we’re already used to. As far as mobile payment platforms go, this arguably positions Apple Pay as the most global
universal mobile wallet yet, and possibly for the foreseeable future. Of course, all of this
backstory and context means jack without actual,
practical experience to show for it. As a foreigner, adding
Suica to your iPhone or Apple Watch is a serious life hack considering how easy it is to do. In fact, you don’t even have
to be in Japan to make one. Within Apple Pay, Suica is denoted as a transit card and when
you put it in the settings as your express transit
card, you don’t even have to unlock or wake your Apple Watch or iPhone, you can just go into the station gates and tap and go, you don’t have
to worry about any of that. Additionally, a huge reason
as to why Suica is so useful is not only because it gets
you to your train quicker, but also, because you can
use it for other things. Tokyo is an oasis filled
with vending machines, convenience stores, and fast food joints to satisfy your simple
needs and keep you going. And many of them take Suica,
which is especially handy if you’re in the mood to simply get in, get out, and go home. It’s even great for not
so every day purchases. Here’s me using it at the Pokemon Center to buy stuff for Mystery Tech, and even playing games at the arcade. And this is not even mentioning that refilling the value on
Apple Pay Suica is super easy. You can just do it within the interface using a credit card that’s
already in your Apple Pay wallet. This is way easier than
the old fashioned way of dealing with refill kiosks
and cash at the train station. All this to say that Apple Pay Suica is incredibly lucrative because all of the small impulse
purchases it thrives on are ones that can also
surprisingly add up. So you might be wondering
how all of this talk about one Japanese card system is relevant to the rest of the world, apart from it being really, really, cool. No, I’m not implying that the Apple Card should be like Suica,
or that I think Suica even has a future outside of Japan, as cool as that sounds. While I can’t speak for
how much Suica is doing for Apple Pay itself, I see the pairing playing toward a grander
vision for Apple Pay and Apple as a whole. If the name of the game is to
prop up hardware businesses with software and
services, pouring resources into mobile payment is a no-brainer, by virtue of it encouraging the moving and spending of money, which is something, again, that
people do on a daily basis. This is exactly why the Apple Card exists. And while it might seem like
more of a heavy handed move to propel Apple Pay’s growth
here in the US market, I mostly see it as a pawn, of sorts, in this game of payment chess. Sure, it could end up a big success, but it actually feels
more like a wake-up call for credit card companies and banks to compete and innovate
their own offerings. In this regard, at
least, the benefits seem to outweigh the downsides. Let’s put it this way. No matter where I am in the world, it shouldn’t be difficult
to take my money, especially if I wanna spend it. Just take my money. And the reality is that
Apple Pay continues to make that easier and easier. The only thing Apple has to do now is convince the public to
experience this for themselves. And if they have their
way, Apple Pay will be their secret weapon to selling even more iPhones and Apple Watches.

16 thoughts on “How Apple is TAKING OVER Japan 🇯🇵

  1. Ken spent six months working on this video start to finish. 👏

  2. well samsung pay uses a tecnology that mimics old credit cards so you can use it wherever you are soooo

  3. Samsung, get on it!

  4. Ken should be in more videos

  5. or just google pay, you know…

  6. And yet Apple phones sales in Japan .
    Didnt Apple closed multiple stores recently ??

    And you huy an Iphone to attach Suica to iphone ??
    Doesnt that already defeat the purpose of Apple Pay ?
    That means that there is multiple integration . Japan dont trust Apple ???

  7. in London you can just use Apple Pay or a credit / debit card to get around on the tube

  8. I'm sorry, i didn't hear MST in this video

  9. they still can't design a damn credit card. scratchy titanium card anyone?

  10. in Asia we have so many electronic payment options which can work on Android, iOS, on cheap device without NFC, basically every phone. It only needs internet connection that s all. Apple pay or samsung pay or whatever pay become irrelevant here

  11. Hey I just revisited this vid and the title changed

  12. Video should have been called, "How Ken drags Austin into advertising for Apple."
    Interesting video but other countries have had nfc pay for years and it works really well. Apple is just catching up and acting like they invented the thing.

  13. KEN is the ugliest chinese bastard i have ever seen. fucking hell. cant watch ur videos due to his presence

  14. I've used NFC payments on my Samsung galaxy devices for years now.
    Never once did I praise my lord and savior Steve Jobs for the privilege.
    Your video opened my mind! /sarcasm

  15. Inside of Germany We can dream from this service…

  16. Absolutely loved this video

  17. You guys still use cards? We've switched to QR codes a while ago.

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