diff --git a/modules/ppcp-settings/resources/js/data/payment/index.js b/modules/ppcp-settings/resources/js/data/payment/index.js
index a0296468a..92e977103 100644
--- a/modules/ppcp-settings/resources/js/data/payment/index.js
+++ b/modules/ppcp-settings/resources/js/data/payment/index.js
@@ -8,6 +8,7 @@ import * as hooks from './hooks';
 import * as resolvers from './resolvers';
 import { initTodoSync } from '../sync/todo-state-sync';
 import { initPaymentDependencySync } from '../sync/payment-methods-sync';
+import { initSettingBasedPaymentMethodsSync } from '../sync/setting-based-payment-methods-sync';
 
 /**
  * Initializes and registers the settings store with WordPress data layer.
@@ -30,6 +31,7 @@ export const initStore = () => {
 
 	// Initialize payment method dependency sync.
 	initPaymentDependencySync();
+	initSettingBasedPaymentMethodsSync();
 
 	return Boolean( wp.data.select( STORE_NAME ) );
 };
diff --git a/modules/ppcp-settings/resources/js/data/sync/payment-methods-sync.js b/modules/ppcp-settings/resources/js/data/sync/payment-methods-sync.js
index 26e1ce4d8..420b9462e 100644
--- a/modules/ppcp-settings/resources/js/data/sync/payment-methods-sync.js
+++ b/modules/ppcp-settings/resources/js/data/sync/payment-methods-sync.js
@@ -61,8 +61,10 @@ export const initPaymentDependencySync = () => {
 							( [ key, method ] ) =>
 								key !== '__meta' &&
 								method &&
-								method.depends_on &&
-								method.depends_on.includes( changedId )
+								method.depends_on_payment_methods &&
+								method.depends_on_payment_methods.includes(
+									changedId
+								)
 						)
 						.map( ( [ key ] ) => key );
 
@@ -115,11 +117,11 @@ const handleRestoreDependents = ( dependentIds, methods ) => {
 
 const checkAllDependenciesSatisfied = ( methodId, methods ) => {
 	const method = methods[ methodId ];
-	if ( ! method || ! method.depends_on ) {
+	if ( ! method || ! method.depends_on_payment_methods ) {
 		return true;
 	}
 
-	return ! method.depends_on.some( ( parentId ) => {
+	return ! method.depends_on_payment_methods.some( ( parentId ) => {
 		const parent = methods[ parentId ];
 		return ! parent || parent.enabled === false;
 	} );
diff --git a/modules/ppcp-settings/resources/js/data/sync/setting-based-payment-methods-sync.js b/modules/ppcp-settings/resources/js/data/sync/setting-based-payment-methods-sync.js
new file mode 100644
index 000000000..628936bf2
--- /dev/null
+++ b/modules/ppcp-settings/resources/js/data/sync/setting-based-payment-methods-sync.js
@@ -0,0 +1,158 @@
+import { subscribe, select } from '@wordpress/data';
+
+// Store names
+const PAYMENT_STORE = 'wc/paypal/payment';
+const SETTINGS_STORE = 'wc/paypal/settings';
+
+// Track original states of methods affected by settings
+const settingDependentStates = {};
+
+/**
+ * Initialize setting dependency synchronization
+ */
+export const initSettingBasedPaymentMethodsSync = () => {
+	let previousSettingsState = null;
+	let isProcessing = false;
+
+	const unsubscribe = subscribe( () => {
+		if ( isProcessing ) {
+			return;
+		}
+
+		isProcessing = true;
+
+		try {
+			// Get both settings and payment stores
+			const settingsHooks = select( SETTINGS_STORE );
+			const paymentHooks = select( PAYMENT_STORE );
+
+			if ( ! settingsHooks || ! paymentHooks ) {
+				isProcessing = false;
+				return;
+			}
+
+			const settings = settingsHooks.persistentData();
+			const methods = paymentHooks.persistentData();
+
+			if ( ! settings || ! methods ) {
+				isProcessing = false;
+				return;
+			}
+
+			if ( ! previousSettingsState ) {
+				previousSettingsState = { ...settings };
+				isProcessing = false;
+				return;
+			}
+
+			// Find which settings changed
+			const changedSettings = Object.keys( settings ).filter(
+				( key ) =>
+					previousSettingsState[ key ] !== undefined &&
+					settings[ key ] !== previousSettingsState[ key ]
+			);
+
+			if ( changedSettings.length > 0 ) {
+				// Process affected payment methods for each changed setting
+				for ( const methodId in methods ) {
+					if ( methodId === '__meta' || ! methods[ methodId ] ) {
+						continue;
+					}
+
+					const method = methods[ methodId ];
+
+					// Skip methods without setting dependencies
+					if ( ! method.depends_on_settings?.settings ) {
+						continue;
+					}
+
+					const { settings: dependencySettings } =
+						method.depends_on_settings;
+
+					// Check if any of the changed settings affects this method
+					const relevantSettings = Object.values(
+						dependencySettings
+					).filter( ( setting ) =>
+						changedSettings.includes( setting.id )
+					);
+
+					if ( relevantSettings.length > 0 ) {
+						// Determine if method should be disabled based on new setting values
+						const shouldBeDisabled = relevantSettings.some(
+							( setting ) =>
+								settings[ setting.id ] !== setting.value
+						);
+
+						if ( shouldBeDisabled ) {
+							// Store original state before disabling
+							if ( ! ( methodId in settingDependentStates ) ) {
+								settingDependentStates[ methodId ] =
+									method.enabled;
+							}
+
+							// Disable the method
+							methods[ methodId ].enabled = false;
+							methods[ methodId ].isDisabled = true;
+						} else {
+							// Check if all setting dependencies are now satisfied
+							const allSettingsSatisfied = Object.values(
+								dependencySettings
+							).every(
+								( setting ) =>
+									settings[ setting.id ] === setting.value
+							);
+
+							// Also check payment method dependencies
+							const paymentDependenciesSatisfied =
+								checkPaymentDependenciesSatisfied(
+									methodId,
+									methods
+								);
+
+							// If all dependencies are satisfied, restore the original state
+							if (
+								allSettingsSatisfied &&
+								paymentDependenciesSatisfied &&
+								methodId in settingDependentStates
+							) {
+								methods[ methodId ].enabled =
+									settingDependentStates[ methodId ];
+								methods[ methodId ].isDisabled = false;
+								delete settingDependentStates[ methodId ];
+							}
+						}
+					}
+				}
+			}
+
+			previousSettingsState = { ...settings };
+		} catch ( error ) {
+			// Silent error handling
+		} finally {
+			isProcessing = false;
+		}
+	} );
+
+	return unsubscribe;
+};
+
+/**
+ * Check if all payment method dependencies are satisfied for a method
+ *
+ * @param {string} methodId - ID of the method to check
+ * @param {Object} methods  - All payment methods
+ * @return {boolean} True if all dependencies are satisfied
+ */
+const checkPaymentDependenciesSatisfied = ( methodId, methods ) => {
+	const method = methods[ methodId ];
+	if ( ! method || ! method.depends_on_payment_methods ) {
+		return true;
+	}
+
+	return ! method.depends_on_payment_methods.some( ( parentId ) => {
+		const parent = methods[ parentId ];
+		return ! parent || parent.enabled === false;
+	} );
+};
+
+export default initSettingBasedPaymentMethodsSync;