iOS Unable to use Apple ID funds for recurring subscriptions

Not sure if this is just me but whenever I try to purchase a recurring sub from via IAP/app store, a prompt appears, then I’m asked to verify and then led to UPI mandate option even though my Apple ID funds are plenty to cover the subscription amount. Even if I go back at this point and try to select Apple funds, I don’t get any option to use the funds to make the purchase.

My existing Apple subs seem to still be pulling from the original funds so it’s not entirely useless fortunately.