So I'm confused;
why aren't the providers (like Fandango) becoming cards in the wallet? All i can do is download apps onto my iPhone.
What am I missing?
The dedicated apps will place 'their' content in the passbook for you. The idea behind passbook is a lot like Newsstand. The mags in newsstand are dedicated apps also, but are grouped into a single location for fast, easy access. That is what Passbook is for. It's a container for the stuff you used to have to enter each individual app to retrieve. Now it's all in one place for you to quickly get to it.