MacBook Apple Pay verifies with old iPhone

When I try to pay for something via Apple Pay on my Macbook the Mac searches for my iPhone via Bluetooth for verification of some kind but it can never find my iPhone, thus I can never complete the purchase on my Mac. I get a message saying something like This Mac cannot locate Nick’s iPhone 3. Please make sure you have Bluetooth turned on and that your phone is nearby (That’s a yes in both cases).

I can complete Apple Pay transactions on my iPhone without a problem.

Both devices are newish and up to date.

In Apple Pay settings on my phone I have Allow Payments on Mac turned on.

For some reason Apple Pay on my Mac is not seeing my current iPhone. My Mac does see the iPhone without problem when I use it for Air Drop so it isn’t a Bluetooth issue.

Under my name in System Settings on my Mac the Devices section does show Nick’s iPhone 3 as being a current Apple device that I own. This is correct.

I have seen another list of devices pop up at some point on my Mac but for the life of me I can’t remember how I summoned it. It was quite recent though. The list was a list of my devices accessible for use with Apple Pay but it was out of date because the phone detailed on the list was Nick’s iPhone 2. Nick’s iPhone 2 was my old phone that I restored to factory settings and deleted from my list of owned devices before giving it away over a year ago.

In summary my guess is that when I try to complete an Apple Pay transaction on my Mac the Apple Pay part of the Mac is searching for my old iPhone 2 to verify the transaction and not searching for my current Nick’s iPhone 3.

Does anyone know how I can remedy this problem? If I’m correct in my assumption then I need to edit the list devices that Apple Pay on my Mac searches for but I have no idea how to do this. As I said above, the list of devices accredited to me in System Settings on my Mac does show Nick’s iPhone 3 as a current device and does not show the old Nick’s iPhone 2. This is correct and as it should be. Apple Pay obviously doesn’t use the same list of owned devices.

Any help you can give would be much appreciated.