IPhone setup question

I just got an iPhone 11 (plain vanilla). It’s set up to my satisfaction, but on the wallpaper, both the settings and folder icons have a little red dot with a little 1 inside, indicating that something needs to be attended to. In this instance, the phone thinks I need to set up “Apple Pay” in my “Wallet.”

Thing is, I don’t need to do that at all, and I have no intention of doing so. But the damn phone doesn’t offer me an option to not set them up, only “not now.” I really want those red dot prompts gone, though. Anybody know how to accomplish this? TIA.

I don’t have a Folder icon…do you mean Files?

I use Wallet now, I have all my credit cards set up in it, but I do not use Apple Pay. Have you tried just playing around with Apple Pay and seeing if just that wipes away the prompt?
ETA: another thought. I’ve had prompts persist after I’ve taken care of whatever I was prompted to do, and I’ve gotten rid of the prompt by restarting the phone.

Put together all of your apps that you can’t delete but want to hide in a folder together and move it to a new screen on the far, far right. You will only encounter the red circles if you go a-lookin’ for them!

Tap on the prompt to as if begin the process, then cancel out of the setup.