At the 14 Feb task force call [1] there was consensus to adopt the proposal I wrote above [2]. Adam will write up the parts for the payment app spec; Rouslan will write up the parts for the payment request API. There was consensus that this proposal intends to address a limited set of use cases for capability matching BEFORE user selection of payment app. For more powerful capability matching, there was consensus that the payment apps themselves should handle that once launched.
Ian
[1] https://www.w3.org/2017/02/14-apps-minutes#item03
[2] https://github.com/w3c/webpayments-payment-apps-api/issues/96#issuecomment-278754087
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