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 7b819f3afc4..885410fd8f6 100644
--- a/assets/js/base/context/providers/cart-checkout/checkout-processor.ts
+++ b/assets/js/base/context/providers/cart-checkout/checkout-processor.ts
@@ -106,6 +106,9 @@ const CheckoutProcessor = () => {
 		};
 	}, [] );
 
+	const { __internalSetPaymentFailed, __internalSetPaymentSuccess } =
+		useDispatch( PAYMENT_STORE_KEY );
+
 	const paymentMethods = getPaymentMethods();
 	const expressPaymentMethods = getExpressPaymentMethods();
 	const currentBillingAddress = useRef( billingAddress );
@@ -256,6 +259,7 @@ const CheckoutProcessor = () => {
 				if ( ! response.ok ) {
 					throw response;
 				}
+				__internalSetPaymentSuccess();
 				return response.json();
 			} )
 			.then( ( responseJson: CheckoutResponseSuccess ) => {
@@ -263,6 +267,7 @@ const CheckoutProcessor = () => {
 				setIsProcessingOrder( false );
 			} )
 			.catch( ( errorResponse: ApiResponse< CheckoutResponseError > ) => {
+				__internalSetPaymentFailed();
 				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/selectors.ts b/assets/js/data/payment/selectors.ts
index f3eb6edc285..00377b76161 100644
--- a/assets/js/data/payment/selectors.ts
+++ b/assets/js/data/payment/selectors.ts
@@ -47,7 +47,6 @@ export const isPaymentReady = ( state: PaymentState ) =>
 export const isPaymentFinished = ( state: PaymentState ) => {
 	return (
 		state.status === PAYMENT_STATUS.SUCCESS ||
-		state.status === PAYMENT_STATUS.ERROR ||
 		state.status === PAYMENT_STATUS.FAILED
 	);
 };