The DPAN is eventually detokenized prior to submission to the issuer for authentication and payment.
So from Apple Pay wallet -> reader -> acquirer -> network -> issuer, the DPAN is used. When it reaches the issuer, the issuer detokenizes DPAN -> CPAN to process the request. When it responds, it retokenizes etc for the response.
Privacy.com serves the purposes of a per-merchant PAN (read: credit card number) online without having to use apple pay.