For setting up Apple Pay in your phone first you have to see Touch ID on your phone. After this, you have to open your Passbook app.
It is the Apple pay dashboard which helps you in storing tickets, boarding passes, coupons, and much more. After it is opened, click on the sign on the right hand corner of the app.
After this, you will see a card that says, Credit and Debit cards which also has explanation about Apple Pay and how it lets Touch ID purchase for you from stores and in apps without you having to swipe card or write any kind of shopping details.
Skip past everything else and select Set up Apple Pay link at the bottom.
You will be then asked to add new debit or credit card. Enter the information manually or you can also use your iSight camera for taking a picture of your card and Passbook will auto fill the detail of the cards.
Next agree with the Terms and Conditions of Apple
Once it is done, you will find options to add more cards. Hit the back option if you want to go back and verify cards only if it is required. For example, if you enter chase card, you have to get it verified.
Verification of your card is done by passbook when it sends a code to your email ID or phone via message or call. If you have choose method of e-mail ID then a verification code will be sent to your ID from your bank. You have to copy the code and enter it in the passbook for verifying your card.
Once the detail of your card is entered and verified, it will be showed in the virtual stack at the top of Passbook app. The other cards for event tickets or plane will be shown at the bottom.
Scroll down through the cards and tap on the one you want to see the detail. If you want to rearrange the order of the card, you can tap and drag them.
Remember, the card that you will keep on the top will become your default card for payment.
For further information, refer to this video. Tutorial courtesy: Lynda.com