diff --git a/src/Spryker/Zed/Payment/Business/Method/PaymentMethodUpdater.php b/src/Spryker/Zed/Payment/Business/Method/PaymentMethodUpdater.php
index db01613..3a2281a 100644
--- a/src/Spryker/Zed/Payment/Business/Method/PaymentMethodUpdater.php
+++ b/src/Spryker/Zed/Payment/Business/Method/PaymentMethodUpdater.php
@@ -177,6 +177,8 @@ public function addPaymentMethod(AddPaymentMethodTransfer $addPaymentMethodTrans
             new PaymentMethodTransfer(),
         );
 
+        $paymentMethodTransfer->setPaymentMethodKey($this->getPaymentMethodKey($paymentMethodTransfer));
+
         $messageAttributes = $addPaymentMethodTransfer->getMessageAttributesOrFail();
         $existingPaymentMethodTransfer = $this->findExistentPaymentMethod($paymentMethodTransfer);
 
@@ -352,12 +354,12 @@ protected function preparePaymentMethodToSave(
             $paymentMethodTransfer
                 ->setName($paymentMethodTransfer->getLabelName())
                 ->setIdPaymentProvider($paymentProviderTransfer->getIdPaymentProvider())
-                ->setPaymentMethodKey($paymentMethodKey);
+                ->setPaymentMethodKey($paymentMethodKey)
+                ->setIsActive(false)
+                ->setIsForeign(true);
         }
 
         $paymentMethodTransfer
-            ->setIsActive(false)
-            ->setIsForeign(true)
             ->setLastMessageTimestamp($messageTimestamp);
 
         return $paymentMethodTransfer;
diff --git a/tests/SprykerTest/Shared/Payment/_support/Helper/PaymentDataHelper.php b/tests/SprykerTest/Shared/Payment/_support/Helper/PaymentDataHelper.php
index 0d38f4b..ffa17ae 100644
--- a/tests/SprykerTest/Shared/Payment/_support/Helper/PaymentDataHelper.php
+++ b/tests/SprykerTest/Shared/Payment/_support/Helper/PaymentDataHelper.php
@@ -90,6 +90,9 @@ public function havePaymentMethod(array $override = []): PaymentMethodTransfer
         }
 
         $paymentMethodEntity->setFkPaymentProvider($paymentMethodTransfer->getIdPaymentProvider());
+        if ($paymentMethodTransfer->getPaymentProvider()) {
+            $paymentMethodEntity->setGroupName($paymentMethodTransfer->getPaymentProvider()->getName());
+        }
         $paymentMethodEntity->fromArray($modifiedPaymentMethodData);
 
         $paymentMethodEntity->save();
diff --git a/tests/SprykerTest/Zed/Payment/Business/Facade/PaymentFacadeTest.php b/tests/SprykerTest/Zed/Payment/Business/Facade/PaymentFacadeTest.php
index 44b27d7..c583613 100644
--- a/tests/SprykerTest/Zed/Payment/Business/Facade/PaymentFacadeTest.php
+++ b/tests/SprykerTest/Zed/Payment/Business/Facade/PaymentFacadeTest.php
@@ -35,8 +35,10 @@
 use Spryker\Zed\Kernel\Container;
 use Spryker\Zed\Payment\Business\Method\PaymentMethodReader;
 use Spryker\Zed\Payment\Business\PaymentBusinessFactory;
+use Spryker\Zed\Payment\Business\PaymentFacade;
 use Spryker\Zed\Payment\PaymentConfig;
 use Spryker\Zed\Payment\PaymentDependencyProvider;
+use SprykerTest\Zed\Payment\PaymentBusinessTester;
 
 /**
  * Auto-generated group annotations
@@ -80,7 +82,7 @@ class PaymentFacadeTest extends Unit
     /**
      * @var \SprykerTest\Zed\Payment\PaymentBusinessTester
      */
-    protected $tester;
+    protected PaymentBusinessTester $tester;
 
     /**
      * @var \Spryker\Zed\Payment\Business\PaymentFacadeInterface|\Spryker\Zed\Kernel\Business\AbstractFacade
@@ -821,6 +823,86 @@ public function testAddPaymentMethodReturnsSavedPaymentMethodTransferWithCorrect
         $this->assertSame($addPaymentMethodTransfer->getPaymentAuthorizationEndpoint(), $createdAddPaymentMethodTransfer->getPaymentAuthorizationEndpoint());
     }
 
+    /**
+     * Reflecting an Update of a PaymentMethod.
+     *
+     * @return void
+     */
+    public function testGivenThePaymentMethodAlreadyExistsAndIsActiveWhenTheAddPaymentMethodMessageIsHandledThenThePaymentMethodIsUpdatedAndIsStillActive(): void
+    {
+        // Arrange
+        $paymentMethodName = 'MethodName' . Uuid::uuid4()->toString();
+        $paymentProviderKey = 'ProviderKey' . Uuid::uuid4()->toString();
+
+        $paymentProviderTransfer = $this->tester->havePaymentProvider([PaymentProviderTransfer::PAYMENT_PROVIDER_KEY => $paymentProviderKey]);
+
+        $this->tester->havePaymentMethod([
+            PaymentMethodTransfer::IS_ACTIVE => true,
+            PaymentMethodTransfer::PAYMENT_METHOD_KEY => (new PaymentFacade())->generatePaymentMethodKey($paymentProviderKey, $paymentMethodName),
+            PaymentMethodTransfer::NAME => $paymentMethodName,
+            PaymentMethodTransfer::PAYMENT_PROVIDER => $paymentProviderTransfer,
+            PaymentMethodTransfer::ID_PAYMENT_PROVIDER => $paymentProviderTransfer->getIdPaymentProvider(),
+            PaymentMethodTransfer::IS_FOREIGN => true,
+        ]);
+
+        $addPaymentMethodTransfer = $this->tester->haveAddPaymentMethodTransfer(
+            [
+                AddPaymentMethodTransfer::NAME => $paymentMethodName,
+                AddPaymentMethodTransfer::PROVIDER_NAME => $paymentProviderKey,
+                AddPaymentMethodTransfer::PAYMENT_AUTHORIZATION_ENDPOINT => 'redirect-url',
+            ],
+        );
+
+        // Act
+        $createdPaymentMethodTransfer = $this->tester->getFacade()->addPaymentMethod($addPaymentMethodTransfer);
+
+        // Assert
+        $this->assertNotNull($createdPaymentMethodTransfer->getIdPaymentMethod());
+        $this->assertNotNull($createdPaymentMethodTransfer->getIdPaymentProvider());
+        $this->assertFalse($createdPaymentMethodTransfer->getIsHidden(), 'Expected that the payment method is visible but it is hidden');
+        $this->assertTrue($createdPaymentMethodTransfer->getIsActive(), 'Expected that the payment method is active but it is inactive');
+    }
+
+    /**
+     * Reflecting an Update of a PaymentMethod.
+     *
+     * @return void
+     */
+    public function testGivenThePaymentMethodAlreadyExistsAndIsInactiveWhenTheAddPaymentMethodMessageIsHandledThenThePaymentMethodIsUpdatedAndIsStillInctive(): void
+    {
+        // Arrange
+        $paymentMethodName = 'MethodName' . Uuid::uuid4()->toString();
+        $paymentProviderKey = 'ProviderKey' . Uuid::uuid4()->toString();
+
+        $paymentProviderTransfer = $this->tester->havePaymentProvider([PaymentProviderTransfer::PAYMENT_PROVIDER_KEY => $paymentProviderKey]);
+
+        $this->tester->havePaymentMethod([
+            PaymentMethodTransfer::IS_ACTIVE => false,
+            PaymentMethodTransfer::PAYMENT_METHOD_KEY => (new PaymentFacade())->generatePaymentMethodKey($paymentProviderKey, $paymentMethodName),
+            PaymentMethodTransfer::NAME => $paymentMethodName,
+            PaymentMethodTransfer::PAYMENT_PROVIDER => $paymentProviderTransfer,
+            PaymentMethodTransfer::ID_PAYMENT_PROVIDER => $paymentProviderTransfer->getIdPaymentProvider(),
+            PaymentMethodTransfer::IS_FOREIGN => true,
+        ]);
+
+        $addPaymentMethodTransfer = $this->tester->haveAddPaymentMethodTransfer(
+            [
+                AddPaymentMethodTransfer::NAME => $paymentMethodName,
+                AddPaymentMethodTransfer::PROVIDER_NAME => $paymentProviderKey,
+                AddPaymentMethodTransfer::PAYMENT_AUTHORIZATION_ENDPOINT => 'redirect-url',
+            ],
+        );
+
+        // Act
+        $createdPaymentMethodTransfer = $this->tester->getFacade()->addPaymentMethod($addPaymentMethodTransfer);
+
+        // Assert
+        $this->assertNotNull($createdPaymentMethodTransfer->getIdPaymentMethod());
+        $this->assertNotNull($createdPaymentMethodTransfer->getIdPaymentProvider());
+        $this->assertFalse($createdPaymentMethodTransfer->getIsHidden(), 'Expected that the payment method is visible but it is hidden');
+        $this->assertFalse($createdPaymentMethodTransfer->getIsActive(), 'Expected that the payment method is inactive but it is active');
+    }
+
     /**
      * @return void
      */
diff --git a/tests/SprykerTest/Zed/Payment/_support/PaymentBusinessTester.php b/tests/SprykerTest/Zed/Payment/_support/PaymentBusinessTester.php
index 06c44e4..f807425 100644
--- a/tests/SprykerTest/Zed/Payment/_support/PaymentBusinessTester.php
+++ b/tests/SprykerTest/Zed/Payment/_support/PaymentBusinessTester.php
@@ -33,6 +33,8 @@
  * @method \Codeception\Lib\Friend haveFriend($name, $actorClass = null)
  *
  * @SuppressWarnings(\SprykerTest\Zed\Payment\PHPMD)
+ *
+ * @method \Spryker\Zed\Payment\Business\PaymentFacadeInterface getFacade(?string $moduleName = NULL)
  */
 class PaymentBusinessTester extends Actor
 {