It's not the banks, it's the retailers. Not everyone takes Apple Pay because you have to buy certain equipment and pay fees based on the transaction (similar to how the retailers would pay the credit card companies). What this is talking about is Google eating the fees for the retailers so that they'll adopt Android Pay.

I'd expect to see many stores adopting Android Pay over Apple Pay for this very reason. Google has basically made it the same as paying cash in the retailers mind.