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Have you tried completely removing your Android Pay account (along with going into system settings, application manager, clearing cache, data, then uninstalling the app) and then starting the set up process from scratch?
I also had this issue with my S6 Edge+ and so I started using Samsung pay and imho it is much better than Android Pay. You may want to check it out, it should be preloaded on your S7 but if not it is in the play store.