When I tapped the upper right corner of my phone to my Apple Watch, both the watch and the phone vibrated. Does anyone know what this signifies? My intuition tells me that it must be an Apple Pay issue, but when I search for it, all I get is details about the rainbow watch bands.
When The Easter egg rainbow effect you’re referring to appears when you tap an iPhone running iOS 17+ against an Apple Watch running watchOS 10+, and it triggers a fun animation — usually a rainbow swirl or sparkle effect — on both devices. This is part of Apple’s newer NameDrop and proximity-based interactions. 
Here’s how to trigger it:
✅ Requirements:
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iPhone running iOS 17 or later
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Apple Watch running watchOS 10 or later
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Both devices must have Bluetooth and Wi-Fi enabled
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AirDrop set to "Everyone" or "Contacts Only"
🎉 How to trigger the rainbow Easter egg:
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Unlock your iPhone and Apple Watch
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Hold the top of your iPhone near the Apple Watch screen
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Wait 1–2 seconds. You should see a rainbow swirl or glow effect briefly appear on the Apple Watch
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Sometimes, a NameDrop prompt may appear as well (if your contact is being shared)
📌 Tips:
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This is not a guaranteed effect every time — it's more of a "just-for-fun" animation Apple included
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It’s often seen when testing NameDrop or proximity interactions
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Both devices need to be unlocked and close together for it to work