The Cutting Edge of Smart Cards: Japan's Suica Card
This week we're looking at the world of Smart Cards. Yesterday we checked out the Oyster Card, an RFID-powered smart card that millions of Londoners are using to pay for public transport. It's one of the largest implementations of RFID in the western world. However perhaps because of that scale, it's also fairly conservative. Right now the Oyster Card is only used on public transport and there is little Internet functionality available.
We can find a more cutting edge example of smart cards in, where else, Japan. The Suica card - produced by transport company JR East (East Japan Railway Company) - is used on most trains, subways and buses in the Greater Tokyo, Sendai and Niigata regions. It is also used in a variety of micro-payment scenarios.
The main function of the Suica card is payment for train and bus rides. However the card is increasingly being used to make purchases at stores and kiosks within the train stations, as well as in airport stores and taxis. The card is also available as an option at some Japanese e-commerce stores. As of April 2009, over 28 million Suica cards were in circulation. Many people have more than one Suica card, so this number doesn't equate to the amount of users.
Suica stands for "Super Urban Intelligent Card." Like the Oyster card, the Suica card uses RFID technology. Also noteworthy is that the Suica isn't the only smart card option for Japan's rail system - the Pasmo card is another popular one.
There is a Mobile Suica, enabling Osaifu Keitai mobile phone users to use Suica via their phone instead of a card.
There have been mashups made with Suica data. An example is Sherelog, a service that fetches data from Suica and "visualizes personal train-ride records on a large public map (or Google Map)."
Suica Posters Connect to Net - But Note The Privacy Warnings
Probably the best example of Internet applications built using Suica has been the 'SuiPo' (short for 'Suica Poster') sites. These are Suica-enabled advertising posters that, when scanned with a Suica card or phone, send further details to your email.
As with anything RFID-related, there are privacy and security concerns. Surveillance expert David Murakami Wood says that while SuiPo are activated by consumers (and so are opt-in), they could also "lead to the accumulation of a lot of data on consumption interests." He warns that this "potentially generates a massive consumer surveillance tool, because it can be linked up [to] travel patterns."
Wood helpfully translated the SuiPo webpage on privacy and data protection. He summarizes what Suica can do with user data as follows:
1. Sending the specific requested information to you;
2. Improving services;
3. Data processing and analysis;
4. JR East's promotional marketing; and
5. JR East customer questionnaires.
Wood wryly notes that "Purposes 2 and 3 pretty much allow JR [East] to do anything it likes with the data."
Conclusion
As usual Japan is a number of years ahead of western countries in mobile technology. But hopefully this type of functionality on smart cards won't be too far away in the U.S. and the rest of the world.
To conclude, we recommend you watch these cute Japanese ads to see the full range of uses for Suica:
Image credits: purprin; jpellgen; David Murakami Wood
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The park advert starts with "Mobile Suica is pretty handy, isn't it?" --- I can't agree more.
However, it's TOO handy...
I have lost count of the number of times I've burned through 10,000yen (roughly $100) of credit in under a week on my Suica because it's too easy to buy things with it. I used to buy everything that I could with it. Not just train tickets; almost every time I got on and off a train I'd buy a drink from a Suica-enabled vending machine, I'd buy lunch with it; anywhere I could use it I would, and because of that I'd run out of money too fast.
It's true about the data collection; if you go into any computer store and scan the Suica on any laptop that has a Suica scanner your travel history for a good few weeks comes up on the screen; it's all stored on the chip!
But still... I do miss it (;_; ) Cornwall (the very south-west tip of England) has nothing like that... It's so backward here...
the cool thing is we can get them out of vending machines there is no personally identifiable info. you can turn it in and get your 500 yen back which is like 5 dollars, when you are done.
i cant stand it if i forget mine and just buy another one right then and there, never have to mess with money is very nice, but yeah a $100 bill is like a $20 so you just burn through money faster. So its good for consumer companies. Its hot out touch your wallet out pops a drink, simple thoughtless.
Controlling my spending has never been a problem. I love the idea and hate having to carry money around. MTA are you listening? NYC transit is like the stone age of transportation.
I think Osaifu Ketai is more significant than some random smartcard. From one point of view, Osaifu Ketai might as well just be that smartcard, but the point is that a phone can run apps, so in principle it could manage data, accounts, and transactions associated with more power and sophistication than any smartcard.
I haven't actually used OK myself, so I don't know if it has those capabilities at present, but even if not, something like it could do so in the near future.
On the other hand, as Robert Higgins noted, the disposability and anonymity of the smartcard is in its favor over an expensive phone.
So where is the write-up on the granddaddy of contactless smart cards, Hong Kong's Octopus, which uses the same tech as the Suica, but was introduced 4 years before the Japanese.
Tom, Octopus is next on my list :-)
I have also heard many testimonies about different dissatisfactions with regards to credit cards. Higher fees and rate increases had been one of the reasons of these disappointments but despite of these many people can help it but to pay and chooses to retain their credit cards. It is just a proof that every now and again, we all need a little help with personal finances, and just don't have the time to get to the bank and have nary the inclination to use credit cards, and that's where no fax payday loans come in. No fax payday loans are simply short term loans, usually for a small amount, that are made with no credit check, and few documents needed to apply – and often no fax lenders will use direct deposit to disburse the funds to you, straight into your checking account. You can even get an installment plan to repay the loan. Also, as a consumer, it's best to find the best personal loan rates, even with no fax payday loans.
RFID transport cards are a nightmare for VISA, Mastercard and JCB: the money flow beyond their control.
@Richard MacManus: Thanks for the insightful post, particularly like the advertising posters. With Octopus interesting points to look at are:
Thank you for your sharing.!