I used Apple Pay on the Watch for the first time last night. It felt a little weird, almost like the supermarket staff were watching me - they probably weren't and it was just me being paranoid.
Still, it probably felt just as weird the first time I paid using my phone.
People are getting used to paying with your phone but, where I live at least, smart watches are very uncommon.
I've seen a steady increase in Fitbits and other smart bands buts that's it. I'll see the occasional watch (mostly Apple) on my commute but the numbers aren't high. Although I did notice the waitress wearing one in the Chinese restaurant we went to while on holiday.
There seems to be no consistency to who has or wears one.
Wearables are still in their "cultural" infancy even though they've been around for a while now. Smart bands, with their more targeted functionality, are better understood and it's easy to see why Apple had to change their approach.
Most, however, don't have a need for an additional piece of technology; the cultural positioning of the smartphone (and its capabilities) is such that a major shift, and a significant technological advance, will be required for wearable use to explode in the same way smartphones did.