diff --git a/modules/ppcp-wc-gateway/src/Helper/ConnectionState.php b/modules/ppcp-wc-gateway/src/Helper/ConnectionState.php
new file mode 100644
index 000000000..5eb164d1d
--- /dev/null
+++ b/modules/ppcp-wc-gateway/src/Helper/ConnectionState.php
@@ -0,0 +1,119 @@
+<?php
+/**
+ * Describes the current API connection state (connected vs onboarding).
+ *
+ * @package WooCommerce\PayPalCommerce\WcGateway\Helper
+ */
+
+declare( strict_types = 1 );
+
+namespace WooCommerce\PayPalCommerce\WcGateway\Helper;
+
+/**
+ * Class ConnectionState
+ *
+ * Manages the merchants' connection status details and provides inspection
+ * methods to describe the current state.
+ */
+class ConnectionState {
+	/**
+	 * The connection status.
+	 *
+	 * A merchant can be either "connected" (true) or "onboarding" (false).
+	 * During the "onboarding" phase, the environment is undefined.
+	 *
+	 * @var bool
+	 */
+	private bool $is_connected;
+
+	/**
+	 * The environment instance, which is managed by this class because it's
+	 * hierarchically coupled to the connection status: Only connected merchants
+	 * have a defined environment.
+	 *
+	 * @var Environment
+	 */
+	private Environment $environment;
+
+	/**
+	 * Constructor.
+	 *
+	 * @param bool        $is_connected Initial connection status.
+	 * @param Environment $environment  The environment instance.
+	 */
+	public function __construct( bool $is_connected, Environment $environment ) {
+		$this->is_connected = $is_connected;
+		$this->environment  = $environment;
+	}
+
+	/**
+	 * Set connection status to "connected to PayPal" (end onboarding).
+	 *
+	 * @param bool $is_sandbox Whether to connect to a sandbox environment.
+	 */
+	public function connect( bool $is_sandbox = false ) : void {
+		$this->is_connected = true;
+		$this->environment->set_environment( $is_sandbox );
+	}
+
+	/**
+	 * Set connection status to "not connected to PayPal" (start onboarding).
+	 */
+	public function disconnect() : void {
+		$this->is_connected = false;
+	}
+
+	/**
+	 * Returns the managed environment instance.
+	 *
+	 * @return Environment The environment instance.
+	 */
+	public function get_environment() : Environment {
+		return $this->environment;
+	}
+
+	/**
+	 * Is the merchant connected to a PayPal account?
+	 *
+	 * @return bool True, if onboarding was completed and connection details are present.
+	 */
+	public function is_connected() : bool {
+		return $this->is_connected;
+	}
+
+	/**
+	 * Is the merchant currently in the "onboarding phase"?
+	 *
+	 * @return bool True, if we don't know merchant connection details.
+	 */
+	public function is_onboarding() : bool {
+		return ! $this->is_connected;
+	}
+
+	/**
+	 * Is the merchant connected to a sandbox environment?
+	 *
+	 * @return bool True, if connected to a sandbox environment.
+	 */
+	public function is_sandbox() : bool {
+		return $this->is_connected && $this->environment->is_sandbox();
+	}
+
+	/**
+	 * Is the merchant connected to a production environment and can receive payments?
+	 *
+	 * @return bool True, if connected to a production environment.
+	 */
+	public function is_production() : bool {
+		return $this->is_connected && $this->environment->is_production();
+	}
+
+	/**
+	 * Returns the current environment's name.
+	 *
+	 * @return string Name of the currently connected environment; empty string if not connected.
+	 */
+	public function current_environment() : string {
+		return $this->is_connected ? $this->environment->current_environment() : '';
+	}
+}
diff --git a/modules/ppcp-wc-gateway/src/Helper/Environment.php b/modules/ppcp-wc-gateway/src/Helper/Environment.php
index 141e329f5..72df40681 100644
--- a/modules/ppcp-wc-gateway/src/Helper/Environment.php
+++ b/modules/ppcp-wc-gateway/src/Helper/Environment.php
@@ -45,7 +45,7 @@ class Environment {
 	 *
 	 * @param bool $is_sandbox Whether this instance represents a sandbox environment.
 	 */
-	private function set_environment( bool $is_sandbox ) : void {
+	public function set_environment( bool $is_sandbox ) : void {
 		if ( $is_sandbox ) {
 			$this->environment_name = self::SANDBOX;
 		} else {