You really should read down to the bottom of that article, where it says that businesses are allowed to set the terms of what forms of payment they’ll accept as long as they do so before the deal is made or the sale is done. Your own source contradicts what you said.

Don’t quit your day job to start giving people legal advice.

When you use apple or android pay, it generates a temporary card number etc and uses that, which means if that payment terminal gets compromised, your card number etc isn’t exposed. Your bank could probably do something similar without Google or Apple as the middleman, but until they do, mobile pay will remain a killer app.