It's not up to Apple to determine what merchants accept Apple Pay. They have (and are currently working) with larger retailers to get them to accept contactless payments, but ultimately it's the merchants decision.
Subway should accept Apple Pay as they are on Apple's list.
http://www.apple.com/apple-pay/where-to-use-apple-pay/
As for Walmart & Target, they are both members of the Merchant Consumer Exchange (MCX) which is developing a competing product called Current C. MCX members are prohibited (by their contract) from accepting any other form of mobile payments for a period of time. A couple of MCX members (Rite-Aid & Best Buy) have decided to turn on contactless payments (i.e. Apple Pay) in their stored. Target is open to the idea, but has not yet made a final decision.
MasterCard has a mobile app called Nearby which will show you locations that accept contactless payments.