diff --git a/paymentsheet/src/main/java/com/stripe/android/paymentsheet/state/PaymentElementLoader.kt b/paymentsheet/src/main/java/com/stripe/android/paymentsheet/state/PaymentElementLoader.kt
index b15f2361857..0374ec9b8ee 100644
--- a/paymentsheet/src/main/java/com/stripe/android/paymentsheet/state/PaymentElementLoader.kt
+++ b/paymentsheet/src/main/java/com/stripe/android/paymentsheet/state/PaymentElementLoader.kt
@@ -194,7 +194,11 @@ internal class DefaultPaymentElementLoader @Inject constructor(
         }
 
         val initialPaymentSelection = async {
-            retrieveInitialPaymentSelection(savedSelection, customer)
+            retrieveInitialPaymentSelection(
+                savedSelection = savedSelection,
+                customer = customer,
+                isGooglePayReady = isGooglePayReady,
+            )
         }
 
         val stripeIntent = elementsSession.stripeIntent
@@ -534,7 +538,8 @@ internal class DefaultPaymentElementLoader @Inject constructor(
 
     private suspend fun retrieveInitialPaymentSelection(
         savedSelection: Deferred<SavedSelection>,
-        customer: Deferred<CustomerState?>
+        customer: Deferred<CustomerState?>,
+        isGooglePayReady: Boolean,
     ): PaymentSelection? {
         return when (val selection = savedSelection.await()) {
             is SavedSelection.GooglePay -> PaymentSelection.GooglePay
@@ -544,6 +549,7 @@ internal class DefaultPaymentElementLoader @Inject constructor(
             }
             is SavedSelection.None -> null
         } ?: customer.await()?.paymentMethods?.firstOrNull()?.toPaymentSelection()
+            ?: PaymentSelection.GooglePay.takeIf { isGooglePayReady }
     }
 
     private suspend fun retrieveSavedSelection(
diff --git a/paymentsheet/src/test/java/com/stripe/android/paymentsheet/state/DefaultPaymentElementLoaderTest.kt b/paymentsheet/src/test/java/com/stripe/android/paymentsheet/state/DefaultPaymentElementLoaderTest.kt
index ce4895ea34e..2fc27dd7467 100644
--- a/paymentsheet/src/test/java/com/stripe/android/paymentsheet/state/DefaultPaymentElementLoaderTest.kt
+++ b/paymentsheet/src/test/java/com/stripe/android/paymentsheet/state/DefaultPaymentElementLoaderTest.kt
@@ -234,6 +234,72 @@ internal class DefaultPaymentElementLoaderTest {
         assertThat(result.paymentSelection).isEqualTo(PaymentSelection.GooglePay)
     }
 
+    @Test
+    fun `Should default to google if customer has no payment methods and no last used payment method`() =
+        runTest {
+            prefsRepository.savePaymentSelection(null)
+
+            val loader = createPaymentElementLoader(
+                stripeIntent = PaymentIntentFixtures.PI_REQUIRES_PAYMENT_METHOD,
+                isGooglePayReady = true,
+                customerRepo = FakeCustomerRepository(paymentMethods = emptyList()),
+            )
+
+            val result = loader.load(
+                initializationMode = PaymentElementLoader.InitializationMode.PaymentIntent(
+                    clientSecret = PaymentSheetFixtures.PAYMENT_INTENT_CLIENT_SECRET.value,
+                ),
+                paymentSheetConfiguration = PaymentSheetFixtures.CONFIG_CUSTOMER_WITH_GOOGLEPAY,
+                initializedViaCompose = false,
+            ).getOrThrow()
+
+            assertThat(result.paymentSelection).isEqualTo(PaymentSelection.GooglePay)
+        }
+
+    @Test
+    fun `Should default to no payment method google pay is not ready`() =
+        runTest {
+            prefsRepository.savePaymentSelection(null)
+
+            val loader = createPaymentElementLoader(
+                stripeIntent = PaymentIntentFixtures.PI_REQUIRES_PAYMENT_METHOD,
+                isGooglePayReady = false,
+                customerRepo = FakeCustomerRepository(paymentMethods = emptyList()),
+            )
+
+            val result = loader.load(
+                initializationMode = PaymentElementLoader.InitializationMode.PaymentIntent(
+                    clientSecret = PaymentSheetFixtures.PAYMENT_INTENT_CLIENT_SECRET.value,
+                ),
+                paymentSheetConfiguration = PaymentSheetFixtures.CONFIG_CUSTOMER_WITH_GOOGLEPAY,
+                initializedViaCompose = false,
+            ).getOrThrow()
+
+            assertThat(result.paymentSelection).isNull()
+        }
+
+    @Test
+    fun `Should default to no payment method google pay is not configured`() =
+        runTest {
+            prefsRepository.savePaymentSelection(null)
+
+            val loader = createPaymentElementLoader(
+                stripeIntent = PaymentIntentFixtures.PI_REQUIRES_PAYMENT_METHOD,
+                isGooglePayReady = true,
+                customerRepo = FakeCustomerRepository(paymentMethods = emptyList()),
+            )
+
+            val result = loader.load(
+                initializationMode = PaymentElementLoader.InitializationMode.PaymentIntent(
+                    clientSecret = PaymentSheetFixtures.PAYMENT_INTENT_CLIENT_SECRET.value,
+                ),
+                paymentSheetConfiguration = PaymentSheetFixtures.CONFIG_CUSTOMER,
+                initializedViaCompose = false,
+            ).getOrThrow()
+
+            assertThat(result.paymentSelection).isNull()
+        }
+
     @Test
     fun `Should default to no payment method if customer has no payment methods and no last used payment method`() =
         runTest {
@@ -243,6 +309,7 @@ internal class DefaultPaymentElementLoaderTest {
                 stripeIntent = PaymentIntentFixtures.PI_REQUIRES_PAYMENT_METHOD_WITHOUT_LINK,
                 isGooglePayReady = true,
                 customerRepo = FakeCustomerRepository(paymentMethods = emptyList()),
+                isGooglePayEnabledFromBackend = false,
             )
 
             val result = loader.load(