diff --git a/src/main/kotlin/com/carbonara/core/order/OrderService.kt b/src/main/kotlin/com/carbonara/core/order/OrderService.kt
index 341e35d..05a811f 100644
--- a/src/main/kotlin/com/carbonara/core/order/OrderService.kt
+++ b/src/main/kotlin/com/carbonara/core/order/OrderService.kt
@@ -123,7 +123,7 @@ class OrderService(
         val updatedOrder = order.copy(
             paymentDetails = order.paymentDetails.copy(internalPaymentStatus = InternalPaymentStatus.FAILED),
             updatedAt = OffsetDateTime.now().toString(),
-            orderStatus = OrderStatus.CANCELLED
+            orderStatus = OrderStatus.PAYMENT_FAILED
         )
         orderRepository.save(updatedOrder).awaitSingleOrNull() ?: run {
             log.error("Failed to update payment status to failed for orderId={}", order.orderId)
diff --git a/src/main/kotlin/com/carbonara/core/order/OrderStatus.kt b/src/main/kotlin/com/carbonara/core/order/OrderStatus.kt
index 6a4ebec..9070b41 100644
--- a/src/main/kotlin/com/carbonara/core/order/OrderStatus.kt
+++ b/src/main/kotlin/com/carbonara/core/order/OrderStatus.kt
@@ -6,5 +6,6 @@ enum class OrderStatus {
     FINDING_AVAILABLE_RIDER,
     DELIVERY_IN_PROGRESS,
     DELIVERED,
-    CANCELLED
+    PAYMENT_FAILED,
+    CANCELLED,
 }
diff --git a/src/test/kotlin/com/carbonara/core/order/OrderServiceTest.kt b/src/test/kotlin/com/carbonara/core/order/OrderServiceTest.kt
index b683ee8..e667ae5 100644
--- a/src/test/kotlin/com/carbonara/core/order/OrderServiceTest.kt
+++ b/src/test/kotlin/com/carbonara/core/order/OrderServiceTest.kt
@@ -233,7 +233,7 @@ class OrderServiceTest {
         val ORDER_DAO_PAYMENT_FAILED = ORDER_DAO.copy(
             paymentDetails = ORDER_DAO.paymentDetails.copy(
                 internalPaymentStatus = InternalPaymentStatus.FAILED),
-            orderStatus = OrderStatus.CANCELLED
+            orderStatus = OrderStatus.PAYMENT_FAILED
         )
     }
 }