I’ve had the same issue. Less than 2 year old iPhone 13 mini updated to iOS 17.0.3 overnight, was ‘recovering data’ when I went to use it in the morning. When it came back on it came up with a notification that Apple Pay had stopped working.
Apple have told me today it will cost £319 to fix because it’s a hardware issue, I told them it’s clearly software related because it happened when it updated.
Apparently the updates use a lot of power, and if the hardware isn’t powerful enough it can overload it and cause it to break. So that’s why it’s so expensive to fix.
So tell me Apple, why would you enforce an update on a phone that isn’t compatible with the hardware? And how isn’t that your fault?
Hoping the next update fixes the issue. It’s become a habit to not take my real wallet anywhere so this is a really serious issue.