Based on this MacRumors article last year (https://www.macrumors.com/2019/05/14/apple-pay-billing-itunes-app-store-icloud/), I should be able to add credit cards in my Wallet when adding payments in Apple ID. Supposedly, when I add payment, there should be a section called "Found in Wallet" where I can directly add any cards in my wallet. However, I did not see the "Found in Wallet" section.
I can add a credit card by entering card numbers. If that card is in my Apple Pay, there is an option to link it to Apple Pay after the card is added by entering numbers.
Is it how it is supposed to work? How can I add Apple Pay Cash as payment method for iTunes/books/music purchase then?
PS: I am in the US, two factor authentication is enabled.

I can add a credit card by entering card numbers. If that card is in my Apple Pay, there is an option to link it to Apple Pay after the card is added by entering numbers.
Is it how it is supposed to work? How can I add Apple Pay Cash as payment method for iTunes/books/music purchase then?
PS: I am in the US, two factor authentication is enabled.
