2: PayPal/Stripe do have their one touch/sso stuff, if sign up with to that you'll have at least an indication if things go weird.
Otherwise you are right. It's a problem but it's a problem with the web, not specifically any payment processors which are all honestly doing anything they can to make these issues a non-issue.
It's not like you can just disable punycode for all sites, because now you just create a new phishing risk for those sites that used it (xn--pypal-something and xn-flge-something look close enough)
Some feel that the correct approach is to whitelist TLDs that have a responsible homograph rule (so, not .com) and show punycode in all other TLDs. Others want to detect whether a name seems "confusing" by some heuristic and show the punycode instead only in that case.