The forwards are both getting their first taste of Championship football this season - Town signed Payne, 21, for £500,000 from Southend United this summer while Palmer, 19, is on a season-long loan from Chelsea.
The pair are competing for the No10 shirt in the 4-2-3-1 formation favoured by Wagner, who is preparing for Saturday’s home Championship clash with Birmingham City.
“I speak to both of them often,” said Wagner, whose side are third ahead of the 16th round of league games.
“Jack knows how much I like him as a person and a footballer. He is very active on the pitch and he trains very well.
“Kasey has a great attitude too but he has had to catch up in terms of endurance.
“He is working hard to do this and I am happy with both of them.
“I have no concerns in this position.”