Hey @mensrev did you get anywhere with this issue? I am facing something similar when trying to submit to AppStore (bot Testflight or production).
I have validated that we have Tap to Pay entitlements and that the app claims that in entitlement as well.
As you describe I am able to use this for testing (with Stripe).
Topic:
App & System Services
SubTopic:
Tap to Pay on iPhone
Tags: