Apple Pay asks for assistive touch

Check for the setting to Confirm With AssistiveTouch, which apparently overrides Face ID even when AssistiveTouch is off. It does not appear on my device, but has worked for others.

https://discussions.apple.com/thread/253416401?sortBy=newest_first

https://discussions.apple.com/thread/253318949?sortBy=best

Do you have a watch paired with your iPhone? The watch uses AssistiveTouch to allow double tapping side button to allow purchases.

I had the same issue and this is what I did:

Settings->Accessibility->Touch->AssistiveTouch scroll down and disable Confirm with AssistiveTouch.

First of all, do you use AssistiveTouch or have it turned on at Settings > Accessibility > Touch > AssistiveTouch?

Also at Settings > Face ID & Passcode, do you have the Wallet & Apple Pay setting turned on.