Screenshots from iOS 8.1 beta 2 confirm Apple Pay is coming on iOS 8.1
A few days ago, there was speculation that the iOS 8.1 update will start rolling out on October 20th. As you can see from the screenshots, it is pretty clear that Apple Pay will be part of the update.
Apple Pay will use the Touch ID fingerprint scanner and NFC, to help make payments in 220,000 locations at launch. Users will select which credit card they want to charge a transaction to, and then put their iPhone next to the POS terminal. The user then presses down on the Touch ID button. In a flash, the user's identity is verified and the payment is accepted by the retailer.