Shipping address not working?

I had the exact same problem. Here's how I fixed it:

Go to Settings > Wallet & Apple Pay > touch on your card. Scroll down and touch on 'Billing Address'. Delete ALL address that are there. Then add a new one but NOT from a contact. Type it all out. Then go back to the main Wallet & Apple Pay page and do the same thing for 'Shipping Address'.

I had this issue in the Boxed app. My address was using ZIP+4. I removed the last four digits of the ZIP+4, and the payment went through.

I followed exactly and it still won't work

I am thinking that the Red Explanation Point is showing within the Target App as you try to complete your payment. Could be it has nothing to do with Apple Pay, but is actually something missing from the Target App Shipping choices. Are there choices, like Standard Shipping vs. Express Shipping, or are there other details needed within the Target Shipping data? Sometimes there is something like a Bill To: which can need a "Same As..." even though this transaction will not be "Billed" other than via your Apple Pay linked Cr. Card.

I can't think that the Target App cares if your Cr. Card linked address watches your Ship To address for the merchandise.

There are no other choices regarding shipping at the point in questions - only the shipping address.

I've also contacted Target but had them only explain they don't support ApplePay in store IOW not even read my question. So, I'm not exactly expecting a lot from them at this point.

I also had the red exclamation point problem when attempting to use Apple pay in the Target app. I found a solution that worked for me.

The Target app showed the red exclamation due to the shipping address. Since I was going to pick up from the store, the shipping address in the Target app showed my phone number and email address from my phone's Passbook & Apple Pay "Transaction Defaults" (shown in iPhone Settings, then under Passbook & Apple Pay). I noticed everything looked correct with my email address and phone number. However, I noticed the phone number had a 1 in front of the area code. Example 1 (xxx) xxx-xxxx.

I went into my Contacts, removed the 1 from before the area code of the phone number. Went back into the Passbook & Apple Pay settings, touched the phone number, then it gave me options of various phone numbers from my personal contact info from Contacts. I chose the phone number I edited (the one in which I removed the 1 from before the area code).

I then exited the phone Settings, went back to the Target app, attempted the purchase again, and it succeeded.

What I concluded from this? The default info in Passbook & Apple Pay is very picky about how it is formatted. A minor formatting issue (like the 1 in front of the area code of my phone number) caused my initial attempt to purchase in the Target app to fail.

Edit

I had exactly same problem and the procedures of jkdman123 helped me. Thanks for great tips.

This worked for me as well.