Error: Payment method required!

I have set up OpenCart, added a product. Then I attempted to step through checkout process: adding product to cart, checking out...
When product is in the cart and I click "Checkout" - I get to "Payment Information" screen which displays an address and an area to enter comment. When I click "Continue" I get "Error: Payment method required!" error.
However - Payment method selection is never offered.

I have checked Admin - and in Extensions/Payment - both "paypal" and "cod" are enabled.

The problem must a misconfiguration on my part somewhere - as nobody else complains about it.
However, I do not see where that can be.

I would appreciate any help or advice.

P.S.
on catalog/controller/checkout_payment.php
var_dump($payment->getMethods()) returns array(0)

well, I was able to make payment options appear after playing with Admin/Extensions/Payment
It appears that once I set "Geo Zone" to one specific one - payment options disappear in the site, however once I reset it back to "All Zones" - payment options reappeared.