Certainly it would not affect “Apple Pay” (or however it's called) technically. But it would dilute/weaken the statement that “paying with your iPhone is secure

Certainly it would not affect “Apple Pay” (or however it's called) technically. But it would dilute/weaken the statement that “paying with your iPhone is secure”. So I can understand that Apple may want to limit payment systems on their phones to ones that they can prove to have a minimal level of security - and their strategy of putting sensitive data in the secure coprocessor while still having the convenience of a one button unlock is unrivaled in the industry. What they definitely do not want is to be associated with stories of credit card fraud involving iPhones, even if technically the fault is clearly outside Apple.