diff --git a/src/libs/NextStepUtils.ts b/src/libs/NextStepUtils.ts
index 3b42382b10f9..db31ab02a3e5 100644
--- a/src/libs/NextStepUtils.ts
+++ b/src/libs/NextStepUtils.ts
@@ -254,14 +254,14 @@ function buildNextStep(report: Report | EmptyObject, predictedNextStatus: ValueO
                         text: 'Waiting for ',
                     },
                     {
-                        text: 'you',
+                        text: managerDisplayName,
                         type: 'strong',
                     },
                     {
                         text: ' to ',
                     },
                     {
-                        text: 'review',
+                        text: 'pay',
                         type: 'strong',
                     },
                     {
@@ -272,10 +272,23 @@ function buildNextStep(report: Report | EmptyObject, predictedNextStatus: ValueO
 
             // Another owner
             if (!isOwner) {
-                optimisticNextStep.title = 'Finished!';
                 optimisticNextStep.message = [
                     {
-                        text: 'No further action required!',
+                        text: 'Waiting for ',
+                    },
+                    {
+                        text: 'you',
+                        type: 'strong',
+                    },
+                    {
+                        text: ' to ',
+                    },
+                    {
+                        text: 'pay',
+                        type: 'strong',
+                    },
+                    {
+                        text: ' %expenses.',
                     },
                 ];
             }
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 6dab37b98ee3..627c50065398 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -3631,6 +3631,7 @@ function cancelPayment(expenseReport: OnyxTypes.Report, chatReport: OnyxTypes.Re
         stateNum = approvalMode === CONST.POLICY.APPROVAL_MODE.OPTIONAL ? CONST.REPORT.STATE_NUM.SUBMITTED : CONST.REPORT.STATE_NUM.APPROVED;
         statusNum = approvalMode === CONST.POLICY.APPROVAL_MODE.OPTIONAL ? CONST.REPORT.STATUS_NUM.CLOSED : CONST.REPORT.STATUS_NUM.APPROVED;
     }
+    const optimisticNextStep = NextStepUtils.buildNextStep(expenseReport, statusNum);
     const optimisticData: OnyxUpdate[] = [
         {
             onyxMethod: Onyx.METHOD.MERGE,
@@ -3655,6 +3656,14 @@ function cancelPayment(expenseReport: OnyxTypes.Report, chatReport: OnyxTypes.Re
         },
     ];
 
+    if (!isFree) {
+        optimisticData.push({
+            onyxMethod: Onyx.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.NEXT_STEP}${expenseReport.reportID}`,
+            value: optimisticNextStep,
+        });
+    }
+
     const successData: OnyxUpdate[] = [
         {
             onyxMethod: Onyx.METHOD.MERGE,
@@ -3696,6 +3705,13 @@ function cancelPayment(expenseReport: OnyxTypes.Report, chatReport: OnyxTypes.Re
             },
         });
     }
+    if (!isFree) {
+        failureData.push({
+            onyxMethod: Onyx.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.NEXT_STEP}${expenseReport.reportID}`,
+            value: NextStepUtils.buildNextStep(expenseReport, CONST.REPORT.STATUS_NUM.REIMBURSED),
+        });
+    }
 
     API.write(
         WRITE_COMMANDS.CANCEL_PAYMENT,
diff --git a/tests/unit/NextStepUtilsTest.ts b/tests/unit/NextStepUtilsTest.ts
index 568c641d2ac5..5f4b1a6ed96b 100644
--- a/tests/unit/NextStepUtilsTest.ts
+++ b/tests/unit/NextStepUtilsTest.ts
@@ -364,7 +364,7 @@ describe('libs/NextStepUtils', () => {
                         text: ' to ',
                     },
                     {
-                        text: 'review',
+                        text: 'pay',
                         type: 'strong',
                     },
                     {
@@ -457,7 +457,7 @@ describe('libs/NextStepUtils', () => {
                         text: ' to ',
                     },
                     {
-                        text: 'review',
+                        text: 'pay',
                         type: 'strong',
                     },
                     {
@@ -472,10 +472,24 @@ describe('libs/NextStepUtils', () => {
 
             test('another owner', () => {
                 report.ownerAccountID = strangeAccountID;
-                optimisticNextStep.title = 'Finished!';
+                optimisticNextStep.title = 'Next Steps:';
                 optimisticNextStep.message = [
                     {
-                        text: 'No further action required!',
+                        text: 'Waiting for ',
+                    },
+                    {
+                        text: 'you',
+                        type: 'strong',
+                    },
+                    {
+                        text: ' to ',
+                    },
+                    {
+                        text: 'pay',
+                        type: 'strong',
+                    },
+                    {
+                        text: ' %expenses.',
                     },
                 ];