In case you do not want to link your Credit card or Bank account to Apple ID, you can consider making PayPal the default mode of Apple Pay payments and make purchases on iPhone using PayPal.
Make Purchases on iPhone Using PayPal
Apple now allows you to use PayPal as the default option for making purchases on iPhone using Apple Pay. In-fact, you can also use PayPal to pay for Apple services like iTunes, App Store, Apple Music, iBooks and iCloud.
Once you link your PayPal Account to Apple ID, you will be able to use PayPal’s One Touch feature to make purchases on all Apple devices, including iPhone, iPad, Apple Watch and Apple TV.
The One Touch feature of PayPal extends to Apple Pay and it basically allows users to make purchases, without having to login to their PayPal account, every time a purchase is made on iPhone.
PayPal does not share your Bank, Credit Card, Country and Region information with Apple. This in theory should allow you to download Apps that are not available in your Country or Region.
How to Add PayPal to Apple Pay on iPhone
In order to make purchases on iPhone using PayPal, your PayPal account needs to be linked to your Apple ID and made as the default method of payment.
1. Open Settings and tap on your Apple ID Name.
2. On the Apple ID screen, tap on Payment and Shipping option.
3. When prompted, enter your Apple ID Passcode.
4. On the Payment & Shipping screen, tap on your existing Payment Method (Credit Card or None)
5. On the Payment Type screen, select PayPal and tap on Next.
6. On the next screen, provide your First Name, Last Name and tap on the Sign in to PayPal link.
Next, follow the on-screen instructions to Sign into your PayPal Account and Agree to the “Terms and conditions”.