So I use the Wise app to transfer money to my American bank account and they recently changed there bank to a PayPay bank account. I usually went to Japan Post bank atm to do the manually transfer, but the new paypay bank does not come up as an option to transfer at the atm. So can I not use this method or am I just being dumb?
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Contact customer support and tell them to put you back to the old account you were transferring to.
On the ATM you probably need to choose “その他の金融機関” or something similar in the menu below the list of common ~8 banks or so that it shows, then search for paypay bank on the next screen: https://www.jp-bank.japanpost.jp/kojin/access/atm_cd/kj_acs_atmcd_ginko_ha.html
This is assuming you have a ゆうちょ account