'Your payment method is not valid in this Store. Please enter a new payment method'

I've run into this problem where I can't make purchases in games/apps or in the store itself. When Im attempt to pay, a notice pops up saying 'Payment information is required' BUT theres one nuance - I've already have apple pay/wallet, but still asking 'add payment', like theyre not notice my card at all.

Im Latvian, using Lithuanian bank.