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What? The watch doesn’t care about that at all. It doesn’t need skin contact, you can hold it against any surface. Many other features like heart rate do depend on skin.
I’ve tried tying and unlocking my AW on multiple things and I can confirm it doesn’t work on „any surface“.
Bold thing to claim anyway.
 
... yet it does work, so what is the problem?
I think OP is also concerned that their financial institution will not authenticate transactions if biometrics that are contrary to Apple's nominally supported biometrics are used. I don't think that's true. If biometric authentication works, it works.
 
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ApplePay is one of the only reasons I wear my Apple Watch. It's so much easier to use than ApplePay on your phone.
 
I'm guessing the sensor isn't actually biometrically identifying the skin itself - ie you could put the watch on someone else, authenticate it with your phone, and it would work with all the same functions, because what the sensor is monitoring is an unbroken chain of contact, not the actual unique structures in / beneath the skin?

Or does it do a blood vessel map or similar of the location you wear it?
There’s no biometrics. You have to know the passcode and set it up with your phone. When you’re wearing it on your wrist, you have to double press the side button, like you use the wake button in iPhone. It assumes because it’s unlocked, and connected to your phone that you’re you
 
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