I don't think that's always correct. When you set up the new iPhone, it asks you to set up TouchID and Apple Pay before it prompts you to restore from a backup. Additionally,
iCloud backup doesn't contain Apple Pay info and settings:
"iCloud backups include nearly all data and settings stored on your device. iCloud backups don't include:
- Data that's already stored in iCloud, like Contacts, Calendars, Notes, My Photo Stream, and iCloud Photo Library
- Data stored in other cloud services, like Gmail and Exchange mail
- Apple Pay information and settings
- Touch ID settings
- iCloud Music Library and App Store content (If it's still available in the iTunes, App, or iBooks Store, you can tap to re-download your already purchased content.)"
Thank you for pointing out my error - I neglected to mention that I did an encrypted backup to my computer and restored that way, not through iCloud.
All I know is that last week when I updated my 6 Plus to iOS 10, I got the dreaded error so I had to restore from a local backup and I did not have to update my Apple Pay settings other than the CSC. When my new iPhone 7 came in, I also only had to enter in the CSC.
I only use iCloud backup if I have an emergency. If I know ahead of time that I'll be restoring I always backup to the computer because the restore goes much more quickly.
Also, the fact that TouchID and Apple Pay have to be set up before you restore from backup don't matter - just skip through those steps until you get the option to restore from backup, and once the phone restores you'll be given the option to set up TouchID and Apple Pay.
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It does transfer? Wow.
And yeah selling the old iPhone.
So would I take Apple Pay off the old iPhone after its restored and setup on the 7 Plus?
Here's what I would do:
Make a backup of your phone ON YOUR COMPUTER, not on iCloud (important to do this first)
Then, restore the old phone to factory settings
Then, restore the new phone using the backup from the old phone that's on your computer.
That's how it worked for me twice last week.