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It's a digital wallet. That includes online payments through apps and websites.
I was under the impression it's mostly for (to quote wikipedia) "one-touch checkout" at retail locations -
buying apps on iPhones etc. has always been through apple id's - and that Apple Pay can be used on websites, like PayPal, is new to me.
salad-
http://www.apple.com/apple-pay/
Scroll to 'in apps'.
Both Target and Uber are already integrating into their apps for launch. With Uber, they'll be accepting apple pay without even needing to register for the Uber app or service.
Soul
It's a digital wallet. That includes online payments through apps and websites.
Sounds exactly like paypal except more convenient.