Apple says I can use Apple Pay to pay for iCloud storage but I cannot get it work. I’ve followed the instructions provided by Apple but I end up in my wallet with my CC showing but nowhere to go. Anyone help?

Apple Pay is the way to pay. It replaces your physical cards and cash with a method of payment that is private, easier and safer. Whether you pay in a store, on a website or in an app. This is the new payment.

it is actually the same as paying contactless with your bank card, only via the iPhone.

Set up Apple Pay in Wallet on iPhone

Set up Apple Pay in Wallet on iPhone – Apple Support (UK)

See this Apple article: Make purchases using Apple Pay

Make purchases using Apple Pay - Apple Support

Make contactless payments using Apple Pay on iPhone

Use Apple Pay for contactless payments on iPhone – Apple Support (UK)

Use Apple Pay in apps, App Clips, and Safari on iPhone

Use Apple Pay in apps, App Clips, and Safari on iPhone – Apple Support (UK)

See -> Set up and use Apple Cash on iPhone (U.S. only)

Set up and use Apple Cash on iPhone (U.S. only) – Apple Support (UK)

Manage Apple Pay cards and activity on iPhone

Manage Apple Pay cards and activity on iPhone – Apple Support (UK)

to pay for iCloud storage

Sign in to your Apple ID account page and edit / update your Apple ID details.

https://appleid.apple.com

On the Sidebar click Payment methods -> then tap Payments Methods and tap Manage payment method.

Or -> Change, add or remove Apple ID payment methods

Change, add or remove Apple ID payment methods – Apple Support (UK)

• Add first the new card, then remove the old one.

See also -> Add money to your Apple ID balance

Add money to your Apple ID balance – Apple Support (UK)

If you update your payment method or add funds to your Apple ID balance, It would take about 1 to 3 business days in order to process.

If you're still unable to update your payment method, Contact Apple Support.

See also -> If you can't make purchases or update apps, including free apps, you need to update your payment method or add a new one. 

Then try to upgrade iCloud+.

You pay for iCloud storage, as well as Music and App Store purchases, using the payment method in your Apple ID account. This can be a card in your Apple Wallet, but doesn’t have to be. Go to Settings, tap on your name at the top, then Payment & Shipping and tap Add Payment Method. You can chose any card in your Wallet or add a different card just for this use.