diff --git a/assets/js/base/context/providers/cart-checkout/checkout-processor.ts b/assets/js/base/context/providers/cart-checkout/checkout-processor.ts
index 885410fd8f6..49029b4415d 100644
--- a/assets/js/base/context/providers/cart-checkout/checkout-processor.ts
+++ b/assets/js/base/context/providers/cart-checkout/checkout-processor.ts
@@ -106,7 +106,7 @@ const CheckoutProcessor = () => {
 		};
 	}, [] );
 
-	const { __internalSetPaymentFailed, __internalSetPaymentSuccess } =
+	const { __internalSetPaymentError, __internalSetPaymentSuccess } =
 		useDispatch( PAYMENT_STORE_KEY );
 
 	const paymentMethods = getPaymentMethods();
@@ -267,7 +267,7 @@ const CheckoutProcessor = () => {
 				setIsProcessingOrder( false );
 			} )
 			.catch( ( errorResponse: ApiResponse< CheckoutResponseError > ) => {
-				__internalSetPaymentFailed();
+				__internalSetPaymentError();
 				processCheckoutResponseHeaders( errorResponse?.headers );
 				try {
 					// This attempts to parse a JSON error response where the status code was 4xx/5xx.
diff --git a/assets/js/data/payment/action-types.ts b/assets/js/data/payment/action-types.ts
index e61ef232c83..7e567ee79e4 100644
--- a/assets/js/data/payment/action-types.ts
+++ b/assets/js/data/payment/action-types.ts
@@ -3,7 +3,6 @@ export enum ACTION_TYPES {
 	SET_PAYMENT_IDLE = 'SET_PAYMENT_IDLE',
 	SET_PAYMENT_STARTED = 'SET_PAYMENT_STARTED',
 	SET_PAYMENT_PROCESSING = 'SET_PAYMENT_PROCESSING',
-	SET_PAYMENT_FAILED = 'SET_PAYMENT_FAILED',
 	SET_PAYMENT_ERROR = 'SET_PAYMENT_ERROR',
 	SET_PAYMENT_SUCCESS = 'SET_PAYMENT_SUCCESS',
 	SET_PAYMENT_READY = 'SET_PAYMENT_READY',
diff --git a/assets/js/data/payment/actions.ts b/assets/js/data/payment/actions.ts
index cdd11884b19..a1a43bbbe59 100644
--- a/assets/js/data/payment/actions.ts
+++ b/assets/js/data/payment/actions.ts
@@ -29,10 +29,6 @@ export const __internalSetPaymentProcessing = () => ( {
 	type: ACTION_TYPES.SET_PAYMENT_PROCESSING,
 } );
 
-export const __internalSetPaymentFailed = () => ( {
-	type: ACTION_TYPES.SET_PAYMENT_FAILED,
-} );
-
 export const __internalSetPaymentError = () => ( {
 	type: ACTION_TYPES.SET_PAYMENT_ERROR,
 } );
diff --git a/assets/js/data/payment/constants.ts b/assets/js/data/payment/constants.ts
index 8f93c8ac0df..f1bf2ba7190 100644
--- a/assets/js/data/payment/constants.ts
+++ b/assets/js/data/payment/constants.ts
@@ -6,7 +6,6 @@ export enum STATUS {
 	STARTED = 'started',
 	PROCESSING = 'processing',
 	ERROR = 'has_error',
-	FAILED = 'failed',
 	SUCCESS = 'success',
 	READY = 'ready', // Indicates observers have finished processing and payment is ready to be processed.
 }
diff --git a/assets/js/data/payment/reducers.ts b/assets/js/data/payment/reducers.ts
index 8a3adcc5325..7fc92dfd089 100644
--- a/assets/js/data/payment/reducers.ts
+++ b/assets/js/data/payment/reducers.ts
@@ -45,13 +45,6 @@ const reducer: Reducer< PaymentState > = (
 			};
 			break;
 
-		case ACTION_TYPES.SET_PAYMENT_FAILED:
-			newState = {
-				...state,
-				status: STATUS.FAILED,
-			};
-			break;
-
 		case ACTION_TYPES.SET_PAYMENT_ERROR:
 			newState = {
 				...state,
diff --git a/assets/js/data/payment/selectors.ts b/assets/js/data/payment/selectors.ts
index 00377b76161..66ff2558d0e 100644
--- a/assets/js/data/payment/selectors.ts
+++ b/assets/js/data/payment/selectors.ts
@@ -13,7 +13,7 @@ import { STATUS as PAYMENT_STATUS } from './constants';
 
 export const isPaymentPristine = ( state: PaymentState ) => {
 	deprecated( 'isPaymentPristine', {
-		since: '9.3.0',
+		since: '9.5.0',
 		alternative: 'isPaymentIdle',
 		plugin: 'WooCommerce Blocks',
 		link: 'https://github.com/woocommerce/woocommerce-blocks/pull/8110',
@@ -38,8 +38,15 @@ export const isPaymentSuccess = ( state: PaymentState ) =>
 export const hasPaymentError = ( state: PaymentState ) =>
 	state.status === PAYMENT_STATUS.ERROR;
 
-export const isPaymentFailed = ( state: PaymentState ) =>
-	state.status === PAYMENT_STATUS.FAILED;
+export const isPaymentFailed = ( state: PaymentState ) => {
+	deprecated( 'isPaymentFailed', {
+		since: '9.5.0',
+		alternative: 'hasPaymentError',
+		plugin: 'WooCommerce Blocks',
+		link: 'https://github.com/woocommerce/woocommerce-blocks/pull/8110',
+	} );
+	return hasPaymentError( state );
+};
 
 export const isPaymentReady = ( state: PaymentState ) =>
 	state.status === PAYMENT_STATUS.READY;
diff --git a/assets/js/data/payment/test/set-default-payment-method.ts b/assets/js/data/payment/test/set-default-payment-method.ts
index e54cd8777f2..3771966fa5a 100644
--- a/assets/js/data/payment/test/set-default-payment-method.ts
+++ b/assets/js/data/payment/test/set-default-payment-method.ts
@@ -126,7 +126,6 @@ describe( 'setDefaultPaymentMethod', () => {
 						__internalSetActivePaymentMethod:
 							setActivePaymentMethodMock,
 						__internalSetPaymentError: () => void 0,
-						__internalSetPaymentFailed: () => void 0,
 						__internalSetPaymentSuccess: () => void 0,
 						__internalSetPaymentIdle: () => void 0,
 						__internalSetPaymentStarted: () => void 0,