It's known as overchoice in the consumer field.
http://en.wikipedia.org/wiki/OverchoiceHaving more choices, on the surface, appears to be a positive development; however it hides an underlying problem: faced with too many choices, consumers have trouble making optimal choices, and thus as a result can be indecisive, unhappy, and even refrain from making the choice (purchase) at all.
That page talks about too many choices of products, not payment options.