suica and e-money for transport

Mobile and near-field tickets for transport in Japan July 9, 2009

©2009 Eurotechnology Japan KK www.eurotechnology.com

Mobile and Near-Field Tickets for transport in Japan

(SUICA and more….)

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by Gerhard Fasol PhD Eurotechnology Japan K. K. www.eurotechnology.com

Version 12, July 9, 2009 ©2007-2009 Eurotechnology Japan K. K. All Rights Reserved

This is a free trial version with a few selected pages only. Purchase and download the latest revision of this report from: http://www.eurotechnology.com/store/suica/



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Agenda   What is the meaning of SUICA?   Competitive landscape of Japan’s emerging electronic cash and electronic payment industry   What is SUICA and why.   SUICA business models   Suica statistics, history and time line   SUICA and PASMO   Major electronic payment systems for transport:

  PASMO   Icoca   Pitapa   Toica

  The SUICA platform   SUICA e-tickets and mobile e-tickets for First Class Travel e-Tickets   SUICA as prepaid electronic cash   Case study: SUICA for luggage lockers and parcel services   Mobile SUICA - SUICA for mobile phones   “Express Yoyaku” and “Express Yoyaku IC service” for Shinkansen express trains   Case study: mobile phone payments and reservations for regional lines - Odakyu-Romance car   What are wallet phones and why   Felica Networks   SUICA’s technology: The FELICA platform   FELICA and Mifare   Summary

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Summary: SUICA and related Smart-Cards

  SUICA is a IC-card system developed and owned by Japan’s JR-East railway company, and based on SONY’s FELICA wireless non-contact multi-application IC-card technology.

  SUICA was developed primarily to replace mechanical ticket gates (which have many moving parts and are expensive to maintain) which are reaching their end of life and to reduce cash handling costs.

  JR East is the world’s largest passenger railway company with YEN 2635 Billion (US$ 27.7 Billion) in sales, of which 67.5% (YEN 1778 Billion, US$ 18.7 billion) is for railway transportation. Therefore the SUICA system in the mid to long term targets an annual transaction volume of US$ 18 billion within JR-East plus e-commerce transactions plus usage by other railway companies as a “white label” contactless ticketing solution.

  SUICA and related contactless payment system, including mobile phone based variants are on the way to become the world’s largest contactless payment system

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What is the Meaning of “SUICA”?

 SUICA is one of the foundations for JR-East’s business (the main business is running a very profitable railway business in the north-east of Japan, including Tokyo)

 JR-East says that SUICA stands for:  S uper  U rban  I ntelligent  Ca rd

  In Japanese language “suisui” is an adverb meaning: smoothly, unhindered, therefore “sui” in “SUICA” reminds of moving smoothly

 (In Japanese language “suica” means “water melon”, Japanese people are fond of eating cooled water melons “suica” during the hot summer season)

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Competitive landscape of Japan’s emerging electronic cash and electronics payment

industry

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For a documentation and analysis of Japan’s mobile payment and mobile credit landscape see our “Mobile payment and keitai credit” report: http://www.eurotechnology.com/store/mobilepay/



What is SUICA and Why

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SUICA Business model

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Quantitative Data and Time Line

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PASMO

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Regional systems

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The Icoca System

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The Pitapa System

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Pitapa remote passenger monitoring service

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From August 1, 2006: Joint Use of SUICA, Icoca and PiTaPa

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Toica in the Chubu/Nagoya area

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JAL Card Suica: Combining SUICA with

the Japan Airlines MileageBank

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The Suica Platform

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SUICA for First-Class Travel e-Tickets

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SUICA as Electronic Cash

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Promoting Suica as eCash

 The poster reads: “at the railstation with SUICA”

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Suica and Pasmo as a secure ID in combination with Payment

case studies: Service units for left luggage and posting of parcels

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SuiPo = Suica Poster an opt-in interactive advertising system

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Mobile Suica

  for more details about mobile phones with smart cards, see our “wallet phone” report:http://www.eurotechnology.com/store/walletphone/

  for details about i-mode see: http://www.eurotechnology.com/store/imode/

  More on mobile payment and keitai credit: http://www.eurotechnology.com/store/mobilepay/

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EZ-Felica KDDI’s wallet phone

 for more about KDDI:http://www.eurotechnology.com/store/kddi/

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JR-Tokai’s Expresscard and EX-IC service

Contactless IC-Cards and Wallet Phones for the Tokyo-Osaka Tokaido-Shinkansen

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Odakyu Romance Car @Club as another example of tickets by

mobile phone

 Rail Ticket Purchase By Mobile Phone  Typical Transaction by Mobile Phone: US$ 5

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Mobile SUICA technology: Felica based Wallet phones

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More about wallet phones: h!p://www.eurotechnology.com/store/walletphone/



Felica Networks Inc. Cooperation Between JR-East, SONY and NTT-DoCoMo

  for more details about mobile phones with smart cards, see our “wallet phone” report:http://www.eurotechnology.com/store/walletphone/

  for details about DoCoMo and i-mode see: http://www.eurotechnology.com/store/imode/

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SUICA’s Technology: The FeliCa Platform

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Security and Privacy

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FeliCa for Transportation: Octopus, Suica, Icoca…

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FeliCa & Mifare

  More about FeliCa wallet phones   http://www.eurotechnology.com/store/walletphone/

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Summary

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Summary: SUICA, PASMO and related Smart-Cards

  SUICA is a IC-card system developed and owned by Japan’s JR-East railway company since the 1980s, and today based on SONY’s FELICA wireless non-contact multi-application IC-card technology.

  SUICA was developed primarily to replace mechanical ticket gates (which have many moving parts and are expensive to maintain) which are reaching their end of life and to reduce cash handling costs.

  JR East is the world’s largest passenger railway company with YEN 2635 Billion (US$ 27.7 Billion) in sales, of which 67.5% (YEN 1778 Billion, US$ 18.7 billion) is for railway transportation. Therefore the SUICA system in the mid to long term targets an annual transaction volume of US$ 18 billion within JR-East plus e-commerce transactions plus usage by other railway companies as a “white label” contactless ticketing solution.

  SUICA and related contactless payment system, including mobile phone based variants are on the way to become the world’s largest contactless payment system

  Today the majority of transportation companies in Japan use Felica based smart cards for contactless ticketing and many are directly compatible with JR-East’s SUICA, which is the dominating player in this field

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More information:

 Blogs:  http://fasol.com/blog/  http://eurotechnology.com/blog/

 Reports:  http://www.eurotechnology.com/store/

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 CEO: Gerhard Fasol PHD  [email protected]  Mobile: +81-90-8594-6291

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