Go to a grocery store for a prepaid $10 Visa card, or privacy.com, or any of the thousand other services that generate virtual cards, and explain to me how you verify identity behind those.
It’s not used for verification because credit card transactions don’t actually carry the information necessary to verify it. Even an actual physical card does not verify the name on it during transactions.
1) Verifying an address is not the same as verifying an identity.
2) Your credit card billing info does mostly include your address. It does not however include your name. Your address is (mostly) validated by the transaction, your name is not at all.