diff --git a/paymentsheet/src/main/java/com/stripe/android/customersheet/CustomerSheetViewModel.kt b/paymentsheet/src/main/java/com/stripe/android/customersheet/CustomerSheetViewModel.kt
index 92ac34b0b87..f87fa266087 100644
--- a/paymentsheet/src/main/java/com/stripe/android/customersheet/CustomerSheetViewModel.kt
+++ b/paymentsheet/src/main/java/com/stripe/android/customersheet/CustomerSheetViewModel.kt
@@ -193,7 +193,7 @@ internal class CustomerSheetViewModel(
             isLiveMode = isLiveModeProvider(),
             canRemovePaymentMethods = customerState.canRemove,
             primaryButtonVisible = primaryButtonVisible,
-            isGooglePayEnabled = paymentMethodMetadata?.isGooglePayReady == true,
+            showGooglePay = shouldShowGooglePay(paymentMethodMetadata),
             isEditing = userCanEditAndIsEditing,
             isProcessing = selectionConfirmationState.isConfirming,
             errorMessage = selectionConfirmationState.error,
@@ -1220,7 +1220,7 @@ internal class CustomerSheetViewModel(
             isModifiable(method, cbcEligibility)
         }
 
-        val canShowSavedPaymentMethods = paymentMethods.isNotEmpty() || metadata?.isGooglePayReady == true
+        val canShowSavedPaymentMethods = paymentMethods.isNotEmpty() || shouldShowGooglePay(metadata)
     }
 
     private data class SelectionConfirmationState(
@@ -1228,8 +1228,13 @@ internal class CustomerSheetViewModel(
         val error: String?,
     )
 
-    private companion object {
+    internal companion object {
         const val REMOVAL_TRANSITION_DELAY = 50L
+
+        fun shouldShowGooglePay(paymentMethodMetadata: PaymentMethodMetadata?): Boolean {
+            return paymentMethodMetadata?.isGooglePayReady == true &&
+                paymentMethodMetadata.customerMetadata?.isPaymentMethodSetAsDefaultEnabled != true
+        }
     }
 
     class Factory(
diff --git a/paymentsheet/src/main/java/com/stripe/android/customersheet/CustomerSheetViewState.kt b/paymentsheet/src/main/java/com/stripe/android/customersheet/CustomerSheetViewState.kt
index 131766a122a..329e2ab021d 100644
--- a/paymentsheet/src/main/java/com/stripe/android/customersheet/CustomerSheetViewState.kt
+++ b/paymentsheet/src/main/java/com/stripe/android/customersheet/CustomerSheetViewState.kt
@@ -60,7 +60,7 @@ internal sealed class CustomerSheetViewState(
         override val isLiveMode: Boolean,
         override val isProcessing: Boolean,
         val isEditing: Boolean,
-        val isGooglePayEnabled: Boolean,
+        val showGooglePay: Boolean,
         val primaryButtonVisible: Boolean,
         val canEdit: Boolean,
         val canRemovePaymentMethods: Boolean,
diff --git a/paymentsheet/src/main/java/com/stripe/android/customersheet/ui/CustomerSheetScreen.kt b/paymentsheet/src/main/java/com/stripe/android/customersheet/ui/CustomerSheetScreen.kt
index 496e6efe5b3..356f51d9105 100644
--- a/paymentsheet/src/main/java/com/stripe/android/customersheet/ui/CustomerSheetScreen.kt
+++ b/paymentsheet/src/main/java/com/stripe/android/customersheet/ui/CustomerSheetScreen.kt
@@ -137,7 +137,7 @@ internal fun SelectPaymentMethod(
 
         val paymentOptionsState = PaymentOptionsStateFactory.create(
             paymentMethods = viewState.savedPaymentMethods,
-            showGooglePay = viewState.isGooglePayEnabled,
+            showGooglePay = viewState.showGooglePay,
             showLink = false,
             currentSelection = viewState.paymentSelection,
             nameProvider = paymentMethodNameProvider,
diff --git a/paymentsheet/src/test/java/com/stripe/android/customersheet/CustomerSheetScreenshotTest.kt b/paymentsheet/src/test/java/com/stripe/android/customersheet/CustomerSheetScreenshotTest.kt
index e4179081156..322087561fc 100644
--- a/paymentsheet/src/test/java/com/stripe/android/customersheet/CustomerSheetScreenshotTest.kt
+++ b/paymentsheet/src/test/java/com/stripe/android/customersheet/CustomerSheetScreenshotTest.kt
@@ -84,7 +84,7 @@ internal class CustomerSheetScreenshotTest {
         isLiveMode = false,
         isProcessing = false,
         isEditing = false,
-        isGooglePayEnabled = false,
+        showGooglePay = false,
         primaryButtonVisible = false,
         canEdit = true,
         canRemovePaymentMethods = true,
@@ -200,7 +200,7 @@ internal class CustomerSheetScreenshotTest {
                         savedPaymentMethods.first()
                     ),
                     isEditing = true,
-                    isGooglePayEnabled = true,
+                    showGooglePay = true,
                     errorMessage = "This is an error message.",
                 ),
                 paymentMethodNameProvider = {
@@ -218,7 +218,7 @@ internal class CustomerSheetScreenshotTest {
                 viewState = selectPaymentMethodViewState.copy(
                     title = "Screenshot testing",
                     paymentSelection = PaymentSelection.GooglePay,
-                    isGooglePayEnabled = true,
+                    showGooglePay = true,
                     errorMessage = "This is an error message.",
                 ),
                 paymentMethodNameProvider = { it!!.resolvableString },
@@ -239,7 +239,7 @@ internal class CustomerSheetScreenshotTest {
                     paymentSelection = PaymentSelection.Saved(
                         PaymentMethodFixtures.US_BANK_ACCOUNT
                     ),
-                    isGooglePayEnabled = false,
+                    showGooglePay = false,
                     primaryButtonVisible = true,
                     mandateText = "Some mandate text.".resolvableString
                 ),
diff --git a/paymentsheet/src/test/java/com/stripe/android/customersheet/CustomerSheetViewModelTest.kt b/paymentsheet/src/test/java/com/stripe/android/customersheet/CustomerSheetViewModelTest.kt
index 9640f37c800..d66e91abb81 100644
--- a/paymentsheet/src/test/java/com/stripe/android/customersheet/CustomerSheetViewModelTest.kt
+++ b/paymentsheet/src/test/java/com/stripe/android/customersheet/CustomerSheetViewModelTest.kt
@@ -1268,7 +1268,7 @@ class CustomerSheetViewModelTest {
         )
 
         viewModel.viewState.test {
-            assertThat(awaitViewState<SelectPaymentMethod>().isGooglePayEnabled).isFalse()
+            assertThat(awaitViewState<SelectPaymentMethod>().showGooglePay).isFalse()
         }
     }
 
@@ -1286,7 +1286,47 @@ class CustomerSheetViewModelTest {
         )
 
         viewModel.viewState.test {
-            assertThat(awaitViewState<SelectPaymentMethod>().isGooglePayEnabled).isTrue()
+            assertThat(awaitViewState<SelectPaymentMethod>().showGooglePay).isTrue()
+        }
+    }
+
+    @Test
+    fun `When default PM feature enabled, then Google Pay should not be shown`() = runTest(testDispatcher) {
+        val viewModel = createViewModel(
+            workContext = testDispatcher,
+            configuration = CustomerSheet.Configuration(
+                merchantDisplayName = "Example",
+                googlePayEnabled = true,
+            ),
+            customerSheetLoader = FakeCustomerSheetLoader(
+                customerPaymentMethods = listOf(CARD_PAYMENT_METHOD),
+                isGooglePayAvailable = true,
+                isPaymentMethodSyncDefaultEnabled = true,
+            ),
+        )
+
+        viewModel.viewState.test {
+            assertThat(awaitViewState<SelectPaymentMethod>().showGooglePay).isFalse()
+        }
+    }
+
+    @Test
+    fun `When default PM feature enabled and no saved PMs, then initial screen is add payment method`() = runTest(testDispatcher) {
+        val viewModel = createViewModel(
+            workContext = testDispatcher,
+            configuration = CustomerSheet.Configuration(
+                merchantDisplayName = "Example",
+                googlePayEnabled = true,
+            ),
+            customerSheetLoader = FakeCustomerSheetLoader(
+                customerPaymentMethods = emptyList(),
+                isGooglePayAvailable = true,
+                isPaymentMethodSyncDefaultEnabled = true,
+            ),
+        )
+
+        viewModel.viewState.test {
+            assertThat(awaitItem()).isInstanceOf(AddPaymentMethod::class.java)
         }
     }
 
diff --git a/paymentsheet/src/test/java/com/stripe/android/customersheet/utils/FakeCustomerSheetLoader.kt b/paymentsheet/src/test/java/com/stripe/android/customersheet/utils/FakeCustomerSheetLoader.kt
index b34ada77229..c051eea3f63 100644
--- a/paymentsheet/src/test/java/com/stripe/android/customersheet/utils/FakeCustomerSheetLoader.kt
+++ b/paymentsheet/src/test/java/com/stripe/android/customersheet/utils/FakeCustomerSheetLoader.kt
@@ -32,6 +32,7 @@ internal class FakeCustomerSheetLoader(
         canRemovePaymentMethods = true,
         canRemoveLastPaymentMethod = true,
     ),
+    private val isPaymentMethodSyncDefaultEnabled: Boolean = false,
 ) : CustomerSheetLoader {
 
     override suspend fun load(configuration: CustomerSheet.Configuration): Result<CustomerSheetState.Full> {
@@ -48,6 +49,7 @@ internal class FakeCustomerSheetLoader(
                         financialConnectionsAvailable = financialConnectionsAvailable,
                         paymentMethodOrder = configuration.paymentMethodOrder,
                         isGooglePayReady = isGooglePayAvailable,
+                        isPaymentMethodSetAsDefaultEnabled = isPaymentMethodSyncDefaultEnabled,
                     ),
                     supportedPaymentMethods = supportedPaymentMethods,
                     customerPaymentMethods = customerPaymentMethods,