I am trying to do the same like you and I found this question which ables you to show your app as payment method.
Application not visible in Tap and Pay
add this lines within application tag in your android manifest...
<service android:exported="true" android:name="my.package.MyPaymentService" android:permission="android.permission.BIND_NFC_SERVICE">
<intent-filter>
<action android:name="android.nfc.cardemulation.action.HOST_APDU_SERVICE" />
<category android:name="android.intent.category.DEFAULT" />
</intent-filter>
<meta-data android:name="android.nfc.cardemulation.host_apdu_service" android:resource="@xml/apduservice" />
</service>
and then create a file named apdusehvices.xml in your xml folder with this content...
<host-apdu-service xmlns:android="http://schemas.android.com/apk/res/android"
android:requireDeviceUnlock="true"
android:apduServiceBanner="@drawable/ic_fingerprint_error">
<aid-group
android:category="payment"
android:description="@string/app_name" >
<aid-filter
android:name="325041592E5359532E4444463031"
android:description="@string/ppse" />
<aid-filter
android:name="A0000000041010"
android:description="@string/mastercard" />
<aid-filter
android:name="A0000000031010"
android:description="@string/visa" />
<aid-filter
android:name="A000000003101001"
android:description="@string/visa" />
<aid-filter
android:name="A0000002771010"
android:description="@string/interac" />
</aid-group>
you will need to set the string variables in your values => strings and the background image in your drawable folder.
Now I can select my app as Tap & Pay app but when I select it the app crashes and I suppose it's because I haven't created there Service class and the manifest is pointing to my.package.MyPaymentService.