Apple Pay not working on Safari v16.5.2, macOS Ventura v13.4.1

I'm using Safari v16.5.2, Mac OS Ventura 13.4.1 on MacBook Air with Apple silicon (M2 chip). My wallet is setup correctly and a credit has been added. However, when I use Apple Pay to pay using safari, the rotating circle shows processing on the popup window but then it stops and nothing happens. I have tried with TouchID and without the finger on TouchID, but result is same, Apple Pay does not process, and no action except "cancel" can be chosen on the pop-up window. Same situation on different websites. Note that I can use ApplePay on my iPhone without any problems. Any ideas, how to fix this issue? I have tried to look at Apple Support but can't find anything. Thanks.