I can't use Apple Pay on my phone because its an iPhone 5S. However, I've used Apply Pay on my Watch and I love it! So easy and intuitive on the Watch since you all it takes is a double-click and you don't have to take anything out of your pocket.
What is annoying is about half of the terminals where I've used Apple Pay, the terminal still asks me if it's Credit or Debit when all I'm doing is using a credit card. It should be able to tell the difference and not ask the question when it doesn't apply. (This is not Apple's fault, it's the poor user design/interface of the terminal itself.) I want it to be fast and convenient. A beep from my watch and the receipt should print out.
As far as merchants claiming their customers aren't asking for it, that baffles me because everyone that's used the Apple Watch for Apple Pay has fallen in love it as much as I have. I just think there aren't enough Watches in the wild yet. Also, how are we supposed to let retailers know that we want Apple Pay? I tell the cashier, but they don't really give a hoot. And what am I supposed to do, write letters or send emails to corporate headquarters for every store I shop at?
For the retailers to say, "insufficient demand" is ********, because they really don't know. It's all based on anecdotal evidence via word of mouth from store managers. And mind you, consumers are not being asked. It's just whether people are asking for it at check out or not. They're filthy liars (the retailers).