Im rooted and was able to get it to work.
To note: I did not figure this out on my own I read it on either reddit or xda earlier today but did not get a chance to play with it until later.
Also: rootcloak or any other root hiding app did not work for me.
I uninstalled xposed as that some how kept triggering an error message "cannot verify software" (again got this from:
How to enable Android Pay on a rooted device. • /r/Android post 110 casen_).
Went into the superuser app and unchecked enabled superuser.
Went into Android Pay and set up my cards (be patient when having to get verification through email. I locked myself out thinking it would be instant only to get the codes later and run out of chances to get it through email. I was able to call the number in the app for my bank and get it resolved though).
Once you set up all your cards you can re-enable superuser in the superuser app and the card will work.
* I did those steps running stock android and not a custom rom.
After a few days I will post my final verdict. But thus far I do not see any difference. To rehash what others said, they just separated features into separate apps. Also when I called my bank to get my verification resolved I noticed she said "your card is all set for Apple Pay". I responded with you mean Android Pay.
Her response "same thing".
Like you guys, those would be the magic words to start a riot. But then I thought about it.
I said in a thread before that in order for pay to survive they are going to have to set aside their differences and work together. I would not be surprised to find out that the reason Google turned wallet into App...Android Pay was to mirror the app more like Apple Pay to help with uniformity for banks. If banks have to set aside and train a tech for different tech, there is a chance it will hurt the process as a whole. But if it is one tech for setting things up across both platforms it would help expedite the process making it more likely to make its way into more stores.