Actually in Hong Kong most of the merchants which have wireless terminals that accept PayWave / PayPass etc. support Apple Pay even if they do not express say it. Only some smaller merchants with weird terminals may have problems.
And here in Mexico it's exactly the other way around. Small and medium size merchants, as well as gas stations, restaurants and fast food joints, usually have standalone portable/wireless terminals that support contactless payment, and therefore can accept Apple Pay just fine. The problem are most of the retailers using integrated point of sale systems (i.e, those systems where the products to be purchased are scanned using barcodes and the credit card pin-pad is connected to a computer that controls it). With very few exceptions, these retailers still don't have contactless payment enabled even though the pin-pads they currently use, such as the Ingenico ipp 320 or Verifone vx 820, do have a built in contactless reader. They usually have the contactless readers disabled and only use the pin-pads for inserting chip cards, and more recently to accept Samsung Pay using MST.
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Does anyone know if this would qualify for both 2% Apple Pay cashback and 3% Apple product/services cashback on Apple card?
It qualifies for the 3% cash back, since you're buying apple products. The 2% cash back is only for purchases made using Apple Pay anywhere other than Apple itself.