Red 1 notification telling me to update payment info

Your Apple Pay Wallet and your payment method for the iTunes & App Store are completely independent of each other; while you can use a card in your Wallet for the App Store, it is not a requirement, and the payment method requirement for the app store is different than for the wallet. Is the badge on the App Store or the Wallet? If it’s on the app store you need to add a payment method, make it Primary, then delete the payment method it doesn’t like. See→Change, add, or remove Apple ID payment methods - Apple Support

Assuming you mean your iTunes & App Store payment method, A “payment declined” or “card declined" message means that the issuer of the credit or debit card you have on file in your iTunes account rejected a charge or account confirmation. It is not an Apple problem; Apple is just passing through the message from your issuer. There are a number of reasons the charge or verification might be declined:

• Apple is not allowed to accept credit or debit cards in your country
• The card is not recognized in your country
• Insufficient balance or account in arrears
• Account suspended for suspected fraud (not necessarily by you)
• Error in card number
• Wrong expiration date
• Wrong security (CVV) code
• Address in your iTunes account does not match exactly the billing address for the card
• The card was not issued in the country of the iTunes store
• You are connected through a VPN provider that does not terminate in the country of the iTunes store you are connected to.

Here is additional information from Apple→If your payment method is declined in the App Store or iTunes Store - Apple Support

Hello Hashtagbritt,

Thanks for reaching out to Apple Support Communities. We see you have some questions about updating your payment information, and we'd like to help. The following link may be able to help, although it seems you went through a lot of the steps already: If you can't add a card to Apple Wallet to use with Apple Pay - Apple Support

1) Check that you're able to use Apple Pay:

•Contact your card issuer to see if they support Apple Pay.

•Update to the latest version of iOS or iPadOS, watchOS, or macOS.

•Make sure that you are in a supported country or region.

•Check that your device is compatible with Apple Pay.

2) Check for services outages or connection issues.

3) If you see the message "Could Not Add Card" or "Invalid Card," contact your bank or card issuer.

If you still have issues, please contact Apple Support: Contact - Official Apple Support

Regards.