Hello JimBud,
Thank you for using Apple Support Communities. Based on your post, the Wallet & Apple Pay option isn't showing up in your Watch app for your Apple Watch. We'll do our best to assist with this.
Does the iPhone XR have the Wallet app showing up with Apple Pay set up? If so, this should reflect in the Watch app.
We'd unpair the Apple Watch and then pair it again with your iPhone, if the Wallet app shows up correctly there: Unpair and erase your Apple Watch
Then use these steps to restore it from the backup: Set up your Apple Watch Restoring from backup may result in the same behavior, but we want to test it to be sure that's the case before suggesting to start over.
Also, confirm the Date & Time show up correctly on the iPhone in Settings > General > Time & Date.
Should it persist, any issues with using the iPhone for Apple Pay?
Hoping to hear back, take care.