Apple Pay is useless if you have a chip in your card

I just tried to purchase a couple items at CVS and was unable to pay using Apple Pay because the payment machine requires that I use the chip on my card. If 98% of cards are going to be using chips by 2017, how does this make Apple Pay at all useful?

EDIT: Per comments on Hacker News, it seems that CVS intentionally blocks Apple Pay if there is a chip due to liability issues.