diff --git a/src/CONST.ts b/src/CONST.ts
index 811dcdfe8b31..f66a6d811bb1 100755
--- a/src/CONST.ts
+++ b/src/CONST.ts
@@ -1226,6 +1226,7 @@ const CONST = {
             ADD_EXPENSE: 'addExpense',
             REOPEN: 'reopen',
             MOVE_EXPENSE: 'moveExpense',
+            PAY: 'pay',
         },
         PRIMARY_ACTIONS: {
             SUBMIT: 'submit',
diff --git a/src/components/ButtonWithDropdownMenu/index.tsx b/src/components/ButtonWithDropdownMenu/index.tsx
index dbd87686bfd7..5364c075f67e 100644
--- a/src/components/ButtonWithDropdownMenu/index.tsx
+++ b/src/components/ButtonWithDropdownMenu/index.tsx
@@ -37,6 +37,7 @@ function ButtonWithDropdownMenu<IValueType>({
     onPress,
     options,
     onOptionSelected,
+    onSubItemSelected,
     onOptionsMenuShow,
     onOptionsMenuHide,
     enterKeyEventListenerPriority = 0,
@@ -218,7 +219,10 @@ function ButtonWithDropdownMenu<IValueType>({
                         onOptionsMenuHide?.();
                     }}
                     onModalShow={onOptionsMenuShow}
-                    onItemSelected={() => setIsMenuVisible(false)}
+                    onItemSelected={(selectedSubitem, index, event) => {
+                        onSubItemSelected?.(selectedSubitem, index, event);
+                        setIsMenuVisible(false);
+                    }}
                     anchorPosition={shouldUseStyleUtilityForAnchorPosition ? styles.popoverButtonDropdownMenuOffset(windowWidth) : popoverAnchorPosition}
                     shouldShowSelectedItemCheck={shouldShowSelectedItemCheck}
                     // eslint-disable-next-line react-compiler/react-compiler
diff --git a/src/components/ButtonWithDropdownMenu/types.ts b/src/components/ButtonWithDropdownMenu/types.ts
index 3e9dd2e7b695..39dbe870e110 100644
--- a/src/components/ButtonWithDropdownMenu/types.ts
+++ b/src/components/ButtonWithDropdownMenu/types.ts
@@ -132,6 +132,9 @@ type ButtonWithDropdownMenuProps<TValueType> = {
     /** The second line text displays under the first line */
     secondLineText?: string;
 
+    /** Callback to execute when a dropdown submenu option is selected */
+    onSubItemSelected?: (selectedItem: PopoverMenuItem, index: number, event?: GestureResponderEvent | KeyboardEvent) => void;
+
     /** Icon for main button */
     icon?: IconAsset;
 };
diff --git a/src/components/MoneyReportHeader.tsx b/src/components/MoneyReportHeader.tsx
index cbd8728f420b..7db4a860f22d 100644
--- a/src/components/MoneyReportHeader.tsx
+++ b/src/components/MoneyReportHeader.tsx
@@ -9,6 +9,7 @@ import useLocalize from '@hooks/useLocalize';
 import useMobileSelectionMode from '@hooks/useMobileSelectionMode';
 import useNetwork from '@hooks/useNetwork';
 import usePaymentAnimations from '@hooks/usePaymentAnimations';
+import usePaymentOptions from '@hooks/usePaymentOptions';
 import usePermissions from '@hooks/usePermissions';
 import useReportIsArchived from '@hooks/useReportIsArchived';
 import useResponsiveLayout from '@hooks/useResponsiveLayout';
@@ -20,9 +21,11 @@ import {deleteAppReport, downloadReportPDF, exportReportToCSV, exportReportToPDF
 import {getThreadReportIDsForTransactions, getTotalAmountForIOUReportPreviewButton} from '@libs/MoneyRequestReportUtils';
 import Navigation from '@libs/Navigation/Navigation';
 import {buildOptimisticNextStepForPreventSelfApprovalsEnabled} from '@libs/NextStepUtils';
+import {isSecondaryActionAPaymentOption, selectPaymentType} from '@libs/PaymentUtils';
+import type {KYCFlowEvent, TriggerKYCFlow} from '@libs/PaymentUtils';
 import {getValidConnectedIntegration} from '@libs/PolicyUtils';
 import {getOriginalMessage, getReportAction, isMoneyRequestAction} from '@libs/ReportActionsUtils';
-import {getReportPrimaryAction} from '@libs/ReportPrimaryActionUtils';
+import {getAllExpensesToHoldIfApplicable, getReportPrimaryAction} from '@libs/ReportPrimaryActionUtils';
 import {getSecondaryReportActions} from '@libs/ReportSecondaryActionUtils';
 import {
     changeMoneyRequestHoldStatus,
@@ -95,6 +98,7 @@ import Header from './Header';
 import HeaderWithBackButton from './HeaderWithBackButton';
 import Icon from './Icon';
 import * as Expensicons from './Icon/Expensicons';
+import KYCWall from './KYCWall';
 import type {PaymentMethod} from './KYCWall/types';
 import LoadingBar from './LoadingBar';
 import Modal from './Modal';
@@ -103,6 +107,7 @@ import MoneyReportHeaderStatusBarSkeleton from './MoneyReportHeaderStatusBarSkel
 import type {MoneyRequestHeaderStatusBarProps} from './MoneyRequestHeaderStatusBar';
 import MoneyRequestHeaderStatusBar from './MoneyRequestHeaderStatusBar';
 import {useMoneyRequestReportContext} from './MoneyRequestReportView/MoneyRequestReportContext';
+import type {PopoverMenuItem} from './PopoverMenu';
 import type {ActionHandledType} from './ProcessMoneyReportHoldMenu';
 import ProcessMoneyReportHoldMenu from './ProcessMoneyReportHoldMenu';
 import AnimatedSettlementButton from './SettlementButton/AnimatedSettlementButton';
@@ -151,6 +156,7 @@ function MoneyReportHeader({
     const [chatReport] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${moneyRequestReport?.chatReportID}`, {canBeMissing: true});
     // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
     const [nextStep] = useOnyx(`${ONYXKEYS.COLLECTION.NEXT_STEP}${moneyRequestReport?.reportID}`, {canBeMissing: true});
+    const [isUserValidated] = useOnyx(ONYXKEYS.ACCOUNT, {selector: (account) => account?.validated, canBeMissing: true});
     const [transactionThreadReport] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${transactionThreadReportID}`, {canBeMissing: true});
     const [reportPDFFilename] = useOnyx(`${ONYXKEYS.COLLECTION.NVP_EXPENSIFY_REPORT_PDF_FILENAME}${moneyRequestReport?.reportID}`, {canBeMissing: true}) ?? null;
     const [download] = useOnyx(`${ONYXKEYS.COLLECTION.DOWNLOAD}${reportPDFFilename}`, {canBeMissing: true});
@@ -316,7 +322,7 @@ function MoneyReportHeader({
             if (isDelegateAccessRestricted) {
                 setIsNoDelegateAccessMenuVisible(true);
             } else if (isAnyTransactionOnHold) {
-                setIsHoldMenuVisible(true);
+                InteractionManager.runAfterInteractions(() => setIsHoldMenuVisible(true));
             } else if (isInvoiceReport) {
                 startAnimation();
                 payInvoice(type, chatReport, moneyRequestReport, payAsBusiness, methodID, paymentMethod);
@@ -445,6 +451,27 @@ function MoneyReportHeader({
         }
     }, [connectedIntegration, exportModalStatus, moneyRequestReport?.reportID]);
 
+    const getAmount = (actionType: ValueOf<typeof CONST.REPORT.REPORT_PREVIEW_ACTIONS>) => ({
+        formattedAmount: getTotalAmountForIOUReportPreviewButton(moneyRequestReport, policy, actionType),
+    });
+
+    const {formattedAmount: payAmount} = getAmount(CONST.REPORT.PRIMARY_ACTIONS.PAY);
+    const {formattedAmount: totalAmount} = hasOnlyHeldExpenses ? getAmount(CONST.REPORT.REPORT_PREVIEW_ACTIONS.REVIEW) : getAmount(CONST.REPORT.PRIMARY_ACTIONS.PAY);
+
+    const paymentButtonOptions = usePaymentOptions({
+        addBankAccountRoute: bankAccountRoute,
+        currency: moneyRequestReport?.currency,
+        iouReport: moneyRequestReport,
+        chatReportID: chatReport?.reportID,
+        formattedAmount: totalAmount,
+        policyID: moneyRequestReport?.policyID,
+        onPress: confirmPayment,
+        shouldHidePaymentOptions: !shouldShowPayButton,
+        shouldShowApproveButton,
+        shouldDisableApproveButton,
+        onlyShowPayElsewhere,
+    });
+
     const addExpenseDropdownOptions: Array<DropdownOption<ValueOf<typeof CONST.REPORT.ADD_EXPENSE_OPTIONS>>> = useMemo(
         () => [
             {
@@ -470,10 +497,6 @@ function MoneyReportHeader({
         [moneyRequestReport?.reportID, translate],
     );
 
-    const getAmount = (actionType: ValueOf<typeof CONST.REPORT.REPORT_PREVIEW_ACTIONS>) => ({
-        formattedAmount: getTotalAmountForIOUReportPreviewButton(moneyRequestReport, policy, actionType),
-    });
-
     const primaryActionsImplementation = {
         [CONST.REPORT.PRIMARY_ACTIONS.SUBMIT]: (
             <Button
@@ -512,7 +535,7 @@ function MoneyReportHeader({
                 shouldHidePaymentOptions={!shouldShowPayButton}
                 shouldShowApproveButton={shouldShowApproveButton}
                 shouldDisableApproveButton={shouldDisableApproveButton}
-                formattedAmount={getAmount(CONST.REPORT.PRIMARY_ACTIONS.PAY).formattedAmount}
+                formattedAmount={payAmount}
                 isDisabled={isOffline && !canAllowSettlement}
                 isLoading={!isOffline && !canAllowSettlement}
             />
@@ -541,6 +564,13 @@ function MoneyReportHeader({
                 onPress={() => {
                     const parentReportAction = getReportAction(moneyRequestReport?.parentReportID, moneyRequestReport?.parentReportActionID);
 
+                    const IOUActions = getAllExpensesToHoldIfApplicable(moneyRequestReport, reportActions);
+
+                    if (IOUActions.length) {
+                        IOUActions.forEach(changeMoneyRequestHoldStatus);
+                        return;
+                    }
+
                     const moneyRequestAction = transactionThreadReportID ? requestParentReportAction : parentReportAction;
                     if (!moneyRequestAction) {
                         return;
@@ -595,7 +625,10 @@ function MoneyReportHeader({
         return getSecondaryReportActions(moneyRequestReport, transactions, violations, policy, reportNameValuePairs, reportActions, canUseRetractNewDot, canUseTableReportView, policies);
     }, [moneyRequestReport, transactions, violations, policy, reportNameValuePairs, reportActions, canUseRetractNewDot, canUseTableReportView, policies]);
 
-    const secondaryActionsImplementation: Record<ValueOf<typeof CONST.REPORT.SECONDARY_ACTIONS>, DropdownOption<ValueOf<typeof CONST.REPORT.SECONDARY_ACTIONS>>> = {
+    const secondaryActionsImplementation: Record<
+        ValueOf<typeof CONST.REPORT.SECONDARY_ACTIONS>,
+        DropdownOption<ValueOf<typeof CONST.REPORT.SECONDARY_ACTIONS>> & Pick<PopoverMenuItem, 'backButtonText'>
+    > = {
         [CONST.REPORT.SECONDARY_ACTIONS.VIEW_DETAILS]: {
             value: CONST.REPORT.SECONDARY_ACTIONS.VIEW_DETAILS,
             text: translate('iou.viewDetails'),
@@ -773,9 +806,9 @@ function MoneyReportHeader({
         },
         [CONST.REPORT.SECONDARY_ACTIONS.ADD_EXPENSE]: {
             text: translate('iou.addExpense'),
+            backButtonText: translate('iou.addExpense'),
             icon: Expensicons.Plus,
             value: CONST.REPORT.SECONDARY_ACTIONS.ADD_EXPENSE,
-            backButtonText: translate('iou.addExpense'),
             subMenuItems: addExpenseDropdownOptions,
             onSelected: () => {
                 if (!moneyRequestReport?.reportID) {
@@ -784,6 +817,13 @@ function MoneyReportHeader({
                 startMoneyRequest(CONST.IOU.TYPE.SUBMIT, moneyRequestReport?.reportID);
             },
         },
+        [CONST.REPORT.SECONDARY_ACTIONS.PAY]: {
+            text: translate('iou.settlePayment', {formattedAmount: totalAmount}),
+            icon: Expensicons.Cash,
+            value: CONST.REPORT.SECONDARY_ACTIONS.PAY,
+            backButtonText: translate('iou.settlePayment', {formattedAmount: totalAmount}),
+            subMenuItems: Object.values(paymentButtonOptions),
+        },
     };
 
     const applicableSecondaryActions = secondaryActions.map((action) => secondaryActionsImplementation[action]).filter((action) => action?.shouldShow !== false);
@@ -833,6 +873,43 @@ function MoneyReportHeader({
             <Text>{translate('iou.reopenExportedReportConfirmation', {connectionName: integrationNameFromExportMessage ?? ''})}</Text>
         </Text>
     );
+    const onPaymentSelect = (event: KYCFlowEvent, iouPaymentType: PaymentMethodType, triggerKYCFlow: TriggerKYCFlow) =>
+        selectPaymentType(event, iouPaymentType, triggerKYCFlow, policy, confirmPayment, isUserValidated, confirmApproval, moneyRequestReport);
+
+    const KYCMoreDropdown = (
+        <KYCWall
+            onSuccessfulKYC={(payment) => confirmPayment(payment)}
+            enablePaymentsRoute={ROUTES.ENABLE_PAYMENTS}
+            addBankAccountRoute={bankAccountRoute}
+            isDisabled={isOffline}
+            source={CONST.KYC_WALL_SOURCE.REPORT}
+            chatReportID={chatReport?.reportID}
+            iouReport={moneyRequestReport}
+            anchorAlignment={{
+                horizontal: CONST.MODAL.ANCHOR_ORIGIN_HORIZONTAL.LEFT, // button is at left, so horizontal anchor is at LEFT
+                vertical: CONST.MODAL.ANCHOR_ORIGIN_VERTICAL.TOP, // we assume that popover menu opens below the button, anchor is at TOP
+            }}
+        >
+            {(triggerKYCFlow, buttonRef) => (
+                <ButtonWithDropdownMenu
+                    success={false}
+                    onPress={() => {}}
+                    onSubItemSelected={(item, index, event) => {
+                        if (!isSecondaryActionAPaymentOption(item)) {
+                            return;
+                        }
+                        onPaymentSelect(event, item.value, triggerKYCFlow);
+                    }}
+                    buttonRef={buttonRef}
+                    shouldAlwaysShowDropdownMenu
+                    customText={translate('common.more')}
+                    options={applicableSecondaryActions}
+                    isSplitButton={false}
+                    wrapperStyle={shouldDisplayNarrowVersion && [!primaryAction && styles.flex1]}
+                />
+            )}
+        </KYCWall>
+    );
 
     return (
         <View style={[styles.pt0, styles.borderBottom]}>
@@ -850,16 +927,7 @@ function MoneyReportHeader({
                 {!shouldDisplayNarrowVersion && (
                     <View style={[styles.flexRow, styles.gap2]}>
                         {!!primaryAction && !shouldShowSelectedTransactionsButton && primaryActionsImplementation[primaryAction]}
-                        {!!applicableSecondaryActions.length && !shouldShowSelectedTransactionsButton && (
-                            <ButtonWithDropdownMenu
-                                success={false}
-                                onPress={() => {}}
-                                shouldAlwaysShowDropdownMenu
-                                customText={translate('common.more')}
-                                options={applicableSecondaryActions}
-                                isSplitButton={false}
-                            />
-                        )}
+                        {!!applicableSecondaryActions.length && !shouldShowSelectedTransactionsButton && KYCMoreDropdown}
                         {shouldShowSelectedTransactionsButton && (
                             <View>
                                 <ButtonWithDropdownMenu
@@ -877,17 +945,7 @@ function MoneyReportHeader({
             {shouldDisplayNarrowVersion && !shouldShowSelectedTransactionsButton && (
                 <View style={[styles.flexRow, styles.gap2, styles.pb3, styles.ph5, styles.w100, styles.alignItemsCenter, styles.justifyContentCenter]}>
                     {!!primaryAction && <View style={[styles.flex1]}>{primaryActionsImplementation[primaryAction]}</View>}
-                    {!!applicableSecondaryActions.length && (
-                        <ButtonWithDropdownMenu
-                            success={false}
-                            onPress={() => {}}
-                            shouldAlwaysShowDropdownMenu
-                            customText={translate('common.more')}
-                            options={applicableSecondaryActions}
-                            isSplitButton={false}
-                            wrapperStyle={[!primaryAction && styles.flex1]}
-                        />
-                    )}
+                    {!!applicableSecondaryActions.length && KYCMoreDropdown}
                 </View>
             )}
             {isMoreContentShown && (
diff --git a/src/components/MoneyRequestHeader.tsx b/src/components/MoneyRequestHeader.tsx
index 69a52f80a640..493352ad6ee2 100644
--- a/src/components/MoneyRequestHeader.tsx
+++ b/src/components/MoneyRequestHeader.tsx
@@ -12,7 +12,7 @@ import useThemeStyles from '@hooks/useThemeStyles';
 import useTransactionViolations from '@hooks/useTransactionViolations';
 import {deleteMoneyRequest} from '@libs/actions/IOU';
 import Navigation from '@libs/Navigation/Navigation';
-import {getOriginalMessage, isMoneyRequestAction} from '@libs/ReportActionsUtils';
+import {getOriginalMessage, getReportActions, isMoneyRequestAction} from '@libs/ReportActionsUtils';
 import {getTransactionThreadPrimaryAction} from '@libs/ReportPrimaryActionUtils';
 import {getSecondaryTransactionThreadActions} from '@libs/ReportSecondaryActionUtils';
 import {changeMoneyRequestHoldStatus, isSelfDM, navigateToDetailsPage} from '@libs/ReportUtils';
@@ -197,10 +197,11 @@ function MoneyRequestHeader({report, parentReportAction, policy, onBackButtonPre
     };
 
     const secondaryActions = useMemo(() => {
-        if (!parentReport || !transaction) {
+        const reportActions = !!parentReport && getReportActions(parentReport);
+        if (!transaction || !reportActions) {
             return [];
         }
-        return getSecondaryTransactionThreadActions(parentReport, transaction);
+        return getSecondaryTransactionThreadActions(parentReport, transaction, Object.values(reportActions));
     }, [parentReport, transaction]);
 
     const secondaryActionsImplementation: Record<ValueOf<typeof CONST.REPORT.TRANSACTION_SECONDARY_ACTIONS>, DropdownOption<ValueOf<typeof CONST.REPORT.TRANSACTION_SECONDARY_ACTIONS>>> = {
diff --git a/src/components/PopoverMenu.tsx b/src/components/PopoverMenu.tsx
index dbf8209d4386..1d6a9bfd7e4b 100644
--- a/src/components/PopoverMenu.tsx
+++ b/src/components/PopoverMenu.tsx
@@ -85,7 +85,7 @@ type PopoverMenuProps = Partial<PopoverModalProps> & {
     isVisible: boolean;
 
     /** Callback to fire when a CreateMenu item is selected */
-    onItemSelected?: (selectedItem: PopoverMenuItem, index: number) => void;
+    onItemSelected?: (selectedItem: PopoverMenuItem, index: number, event?: GestureResponderEvent | KeyboardEvent) => void;
 
     /** Menu items to be rendered on the list */
     menuItems: PopoverMenuItem[];
@@ -220,7 +220,7 @@ function PopoverMenu({
     const isWebOrDesktop = platform === CONST.PLATFORM.WEB || platform === CONST.PLATFORM.DESKTOP;
     const [focusedIndex, setFocusedIndex] = useArrowKeyFocusManager({initialFocusedIndex: currentMenuItemsFocusedIndex, maxIndex: currentMenuItems.length - 1, isActive: isVisible});
 
-    const selectItem = (index: number) => {
+    const selectItem = (index: number, event?: GestureResponderEvent | KeyboardEvent) => {
         const selectedItem = currentMenuItems.at(index);
         if (!selectedItem) {
             return;
@@ -231,7 +231,7 @@ function PopoverMenu({
             const selectedSubMenuItemIndex = selectedItem?.subMenuItems.findIndex((option) => option.isSelected);
             setFocusedIndex(selectedSubMenuItemIndex);
         } else if (selectedItem.shouldCallAfterModalHide && (!isSafari() || shouldAvoidSafariException)) {
-            onItemSelected?.(selectedItem, index);
+            onItemSelected?.(selectedItem, index, event);
             close(
                 () => {
                     selectedItem.onSelected?.();
@@ -240,7 +240,7 @@ function PopoverMenu({
                 selectedItem.shouldCloseAllModals,
             );
         } else {
-            onItemSelected?.(selectedItem, index);
+            onItemSelected?.(selectedItem, index, event);
             selectedItem.onSelected?.();
         }
     };
@@ -295,7 +295,7 @@ function PopoverMenu({
                     key={key ?? `${item.text}_${menuIndex}`}
                     pressableTestID={menuItemTestID ?? `PopoverMenuItem-${item.text}`}
                     title={text}
-                    onPress={() => selectItem(menuIndex)}
+                    onPress={(event) => selectItem(menuIndex, event)}
                     focused={focusedIndex === menuIndex}
                     shouldShowSelectedItemCheck={shouldShowSelectedItemCheck}
                     shouldCheckActionAllowedOnPress={false}
diff --git a/src/components/SettlementButton/index.tsx b/src/components/SettlementButton/index.tsx
index a359b5f158c7..7f4f306bf414 100644
--- a/src/components/SettlementButton/index.tsx
+++ b/src/components/SettlementButton/index.tsx
@@ -1,42 +1,23 @@
-import React, {useEffect, useMemo, useRef} from 'react';
-import type {GestureResponderEvent} from 'react-native';
+import React from 'react';
 import {useOnyx} from 'react-native-onyx';
-import type {TupleToUnion} from 'type-fest';
 import ButtonWithDropdownMenu from '@components/ButtonWithDropdownMenu';
-import type {PaymentType} from '@components/ButtonWithDropdownMenu/types';
-import * as Expensicons from '@components/Icon/Expensicons';
+import type {DropdownOption, PaymentType} from '@components/ButtonWithDropdownMenu/types';
 import KYCWall from '@components/KYCWall';
 import useLocalize from '@hooks/useLocalize';
 import useNetwork from '@hooks/useNetwork';
-import useThemeStyles from '@hooks/useThemeStyles';
-import {isCurrencySupportedForDirectReimbursement} from '@libs/actions/Policy/Policy';
-import Navigation from '@libs/Navigation/Navigation';
-import {formatPaymentMethods} from '@libs/PaymentUtils';
+import usePaymentOptions from '@hooks/usePaymentOptions';
+import {selectPaymentType} from '@libs/PaymentUtils';
+import type {KYCFlowEvent, TriggerKYCFlow} from '@libs/PaymentUtils';
 import getPolicyEmployeeAccountIDs from '@libs/PolicyEmployeeListUtils';
-import {
-    doesReportBelongToWorkspace,
-    isExpenseReport as isExpenseReportUtil,
-    isIndividualInvoiceRoom as isIndividualInvoiceRoomUtil,
-    isInvoiceReport as isInvoiceReportUtil,
-} from '@libs/ReportUtils';
-import {shouldRestrictUserBillableActions} from '@libs/SubscriptionUtils';
-import {setPersonalBankAccountContinueKYCOnSuccess} from '@userActions/BankAccounts';
-import {approveMoneyRequest, savePreferredPaymentMethod as savePreferredPaymentMethodIOU} from '@userActions/IOU';
+import {doesReportBelongToWorkspace, isInvoiceReport as isInvoiceReportUtil} from '@libs/ReportUtils';
+import {savePreferredPaymentMethod as savePreferredPaymentMethodIOU} from '@userActions/IOU';
 import CONST from '@src/CONST';
 import ONYXKEYS from '@src/ONYXKEYS';
 import ROUTES from '@src/ROUTES';
-import type {LastPaymentMethodType} from '@src/types/onyx';
 import type {PaymentMethodType} from '@src/types/onyx/OriginalMessage';
 import {isEmptyObject} from '@src/types/utils/EmptyObject';
-import isLoadingOnyxValue from '@src/types/utils/isLoadingOnyxValue';
 import type SettlementButtonProps from './types';
 
-type KYCFlowEvent = GestureResponderEvent | KeyboardEvent | undefined;
-
-type TriggerKYCFlow = (event: KYCFlowEvent, iouPaymentType: PaymentMethodType) => void;
-
-type CurrencyType = TupleToUnion<typeof CONST.DIRECT_REIMBURSEMENT_CURRENCIES>;
-
 function SettlementButton({
     addDebitCardRoute = ROUTES.IOU_SEND_ADD_DEBIT_CARD,
     addBankAccountRoute = '',
@@ -73,7 +54,6 @@ function SettlementButton({
     onlyShowPayElsewhere,
     wrapperStyle,
 }: SettlementButtonProps) {
-    const styles = useThemeStyles();
     const {translate} = useLocalize();
     const {isOffline} = useNetwork();
     // The app would crash due to subscribing to the entire report collection if chatReportID is an empty string. So we should have a fallback ID here.
@@ -83,196 +63,27 @@ function SettlementButton({
     const policyEmployeeAccountIDs = policyID ? getPolicyEmployeeAccountIDs(policyID) : [];
     const reportBelongsToWorkspace = policyID ? doesReportBelongToWorkspace(chatReport, policyEmployeeAccountIDs, policyID) : false;
     const policyIDKey = reportBelongsToWorkspace ? policyID : CONST.POLICY.ID_FAKE;
-    const [lastPaymentMethod, lastPaymentMethodResult] = useOnyx(ONYXKEYS.NVP_LAST_PAYMENT_METHOD, {
-        canBeMissing: true,
-        selector: (paymentMethod) => {
-            if (typeof paymentMethod?.[policyIDKey] === 'string') {
-                return paymentMethod?.[policyIDKey];
-            }
-            return (paymentMethod?.[policyIDKey] as LastPaymentMethodType)?.lastUsed;
-        },
-    });
-
-    const isLoadingLastPaymentMethod = isLoadingOnyxValue(lastPaymentMethodResult);
     const [policy] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY}${policyID}`, {canBeMissing: false});
-    const [bankAccountList = {}] = useOnyx(ONYXKEYS.BANK_ACCOUNT_LIST, {canBeMissing: true});
-    const [fundList = {}] = useOnyx(ONYXKEYS.FUND_LIST, {canBeMissing: true});
-    const lastPaymentMethodRef = useRef(lastPaymentMethod);
-
-    useEffect(() => {
-        if (isLoadingLastPaymentMethod) {
-            return;
-        }
-        lastPaymentMethodRef.current = lastPaymentMethod;
-        // eslint-disable-next-line react-compiler/react-compiler, react-hooks/exhaustive-deps
-    }, [isLoadingLastPaymentMethod]);
-
     const isInvoiceReport = (!isEmptyObject(iouReport) && isInvoiceReportUtil(iouReport)) || false;
-    const shouldShowPayWithExpensifyOption = !shouldHidePaymentOptions;
-    const shouldShowPayElsewhereOption = !shouldHidePaymentOptions && !isInvoiceReport;
-    const paymentButtonOptions = useMemo(() => {
-        const buttonOptions = [];
-        const isExpenseReport = isExpenseReportUtil(iouReport);
-        const paymentMethods = {
-            [CONST.IOU.PAYMENT_TYPE.EXPENSIFY]: {
-                text: translate('iou.settleExpensify', {formattedAmount}),
-                icon: Expensicons.Wallet,
-                value: CONST.IOU.PAYMENT_TYPE.EXPENSIFY,
-            },
-            [CONST.IOU.PAYMENT_TYPE.VBBA]: {
-                text: translate('iou.settleExpensify', {formattedAmount}),
-                icon: Expensicons.Wallet,
-                value: CONST.IOU.PAYMENT_TYPE.VBBA,
-            },
-            [CONST.IOU.PAYMENT_TYPE.ELSEWHERE]: {
-                text: translate('iou.payElsewhere', {formattedAmount}),
-                icon: Expensicons.Cash,
-                value: CONST.IOU.PAYMENT_TYPE.ELSEWHERE,
-            },
-        };
-        const approveButtonOption = {
-            text: translate('iou.approve', {formattedAmount}),
-            icon: Expensicons.ThumbsUp,
-            value: CONST.IOU.REPORT_ACTION_TYPE.APPROVE,
-            disabled: !!shouldDisableApproveButton,
-        };
-        const canUseWallet = !isExpenseReport && !isInvoiceReport && currency === CONST.CURRENCY.USD;
-
-        // Only show the Approve button if the user cannot pay the expense
-        if (shouldHidePaymentOptions && shouldShowApproveButton) {
-            return [approveButtonOption];
-        }
-
-        if (onlyShowPayElsewhere) {
-            return [paymentMethods[CONST.IOU.PAYMENT_TYPE.ELSEWHERE]];
-        }
-
-        // To achieve the one tap pay experience we need to choose the correct payment type as default.
-        if (canUseWallet) {
-            buttonOptions.push(paymentMethods[CONST.IOU.PAYMENT_TYPE.EXPENSIFY]);
-        }
-        if (isExpenseReport && shouldShowPayWithExpensifyOption) {
-            buttonOptions.push(paymentMethods[CONST.IOU.PAYMENT_TYPE.VBBA]);
-        }
-        if (shouldShowPayElsewhereOption) {
-            buttonOptions.push(paymentMethods[CONST.IOU.PAYMENT_TYPE.ELSEWHERE]);
-        }
-
-        if (isInvoiceReport) {
-            const formattedPaymentMethods = formatPaymentMethods(bankAccountList, fundList, styles);
-            const isCurrencySupported = isCurrencySupportedForDirectReimbursement(currency as CurrencyType);
-            const getPaymentSubitems = (payAsBusiness: boolean) =>
-                formattedPaymentMethods.map((formattedPaymentMethod) => ({
-                    text: formattedPaymentMethod?.title ?? '',
-                    description: formattedPaymentMethod?.description ?? '',
-                    icon: formattedPaymentMethod?.icon,
-                    onSelected: () => onPress(CONST.IOU.PAYMENT_TYPE.EXPENSIFY, payAsBusiness, formattedPaymentMethod.methodID, formattedPaymentMethod.accountType),
-                    iconStyles: formattedPaymentMethod?.iconStyles,
-                    iconHeight: formattedPaymentMethod?.iconSize,
-                    iconWidth: formattedPaymentMethod?.iconSize,
-                }));
-
-            if (isIndividualInvoiceRoomUtil(chatReport)) {
-                buttonOptions.push({
-                    text: translate('iou.settlePersonal', {formattedAmount}),
-                    icon: Expensicons.User,
-                    value: CONST.IOU.PAYMENT_TYPE.ELSEWHERE,
-                    backButtonText: translate('iou.individual'),
-                    subMenuItems: [
-                        ...(isCurrencySupported ? getPaymentSubitems(false) : []),
-                        {
-                            text: translate('workspace.invoices.paymentMethods.addBankAccount'),
-                            icon: Expensicons.Bank,
-                            onSelected: () => Navigation.navigate(addBankAccountRoute),
-                        },
-                        {
-                            text: translate('iou.payElsewhere', {formattedAmount: ''}),
-                            icon: Expensicons.Cash,
-                            value: CONST.IOU.PAYMENT_TYPE.ELSEWHERE,
-                            onSelected: () => onPress(CONST.IOU.PAYMENT_TYPE.ELSEWHERE),
-                        },
-                    ],
-                });
-            }
 
-            buttonOptions.push({
-                text: translate('iou.settleBusiness', {formattedAmount}),
-                icon: Expensicons.Building,
-                value: CONST.IOU.PAYMENT_TYPE.ELSEWHERE,
-                backButtonText: translate('iou.business'),
-                subMenuItems: [
-                    ...(isCurrencySupported ? getPaymentSubitems(true) : []),
-                    {
-                        text: translate('workspace.invoices.paymentMethods.addBankAccount'),
-                        icon: Expensicons.Bank,
-                        onSelected: () => Navigation.navigate(addBankAccountRoute),
-                    },
-                    {
-                        text: translate('iou.payElsewhere', {formattedAmount: ''}),
-                        icon: Expensicons.Cash,
-                        value: CONST.IOU.PAYMENT_TYPE.ELSEWHERE,
-                        onSelected: () => onPress(CONST.IOU.PAYMENT_TYPE.ELSEWHERE, true),
-                    },
-                ],
-            });
-        }
-
-        if (shouldShowApproveButton) {
-            buttonOptions.push(approveButtonOption);
-        }
-
-        // Put the preferred payment method to the front of the array, so it's shown as default. We assume their last payment method is their preferred.
-        if (lastPaymentMethodRef.current) {
-            return buttonOptions.sort((method) => (method.value === lastPaymentMethod ? -1 : 0));
-        }
-        return buttonOptions;
-        // We don't want to reorder the options when the preferred payment method changes while the button is still visible except for component initialization when the last payment method is not initialized yet.
-        // We need to be sure that onPress should be wrapped in an useCallback to prevent unnecessary updates.
-        // eslint-disable-next-line react-compiler/react-compiler, react-hooks/exhaustive-deps
-    }, [
-        isLoadingLastPaymentMethod,
+    const paymentButtonOptions = usePaymentOptions({
+        addBankAccountRoute,
+        currency,
         iouReport,
-        translate,
+        chatReportID,
         formattedAmount,
-        shouldDisableApproveButton,
-        isInvoiceReport,
-        currency,
+        policyID,
+        onPress,
         shouldHidePaymentOptions,
         shouldShowApproveButton,
-        shouldShowPayWithExpensifyOption,
-        shouldShowPayElsewhereOption,
-        chatReport,
-        onPress,
+        shouldDisableApproveButton,
         onlyShowPayElsewhere,
-    ]);
-
-    const selectPaymentType = (event: KYCFlowEvent, iouPaymentType: PaymentMethodType, triggerKYCFlow: TriggerKYCFlow) => {
-        if (policy && shouldRestrictUserBillableActions(policy.id)) {
-            Navigation.navigate(ROUTES.RESTRICTED_ACTION.getRoute(policy.id));
-            return;
-        }
-
-        if (iouPaymentType === CONST.IOU.PAYMENT_TYPE.EXPENSIFY || iouPaymentType === CONST.IOU.PAYMENT_TYPE.VBBA) {
-            if (!isUserValidated) {
-                Navigation.navigate(ROUTES.SETTINGS_CONTACT_METHOD_VERIFY_ACCOUNT.getRoute(Navigation.getActiveRoute()));
-                return;
-            }
-            triggerKYCFlow(event, iouPaymentType);
-            setPersonalBankAccountContinueKYCOnSuccess(ROUTES.ENABLE_PAYMENTS);
-            return;
-        }
+    });
 
-        if (iouPaymentType === CONST.IOU.REPORT_ACTION_TYPE.APPROVE) {
-            if (confirmApproval) {
-                confirmApproval();
-            } else {
-                approveMoneyRequest(iouReport);
-            }
-            return;
-        }
+    const filteredPaymentOptions = paymentButtonOptions.filter((option) => option.value !== undefined) as Array<DropdownOption<PaymentType>>;
 
-        onPress(iouPaymentType);
-    };
+    const onPaymentSelect = (event: KYCFlowEvent, iouPaymentType: PaymentMethodType, triggerKYCFlow: TriggerKYCFlow) =>
+        selectPaymentType(event, iouPaymentType, triggerKYCFlow, policy, onPress, isUserValidated, confirmApproval, iouReport);
 
     const savePreferredPaymentMethod = (id: string, value: PaymentMethodType) => {
         savePreferredPaymentMethodIOU(id, value, undefined);
@@ -302,9 +113,9 @@ function SettlementButton({
                     isSplitButton={!isInvoiceReport}
                     isDisabled={isDisabled}
                     isLoading={isLoading}
-                    onPress={(event, iouPaymentType) => selectPaymentType(event, iouPaymentType, triggerKYCFlow)}
+                    onPress={(event, iouPaymentType) => onPaymentSelect(event, iouPaymentType, triggerKYCFlow)}
                     pressOnEnter={pressOnEnter}
-                    options={paymentButtonOptions}
+                    options={filteredPaymentOptions}
                     onOptionSelected={(option) => {
                         if (policyID === '-1') {
                             return;
diff --git a/src/hooks/usePaymentOptions.ts b/src/hooks/usePaymentOptions.ts
new file mode 100644
index 000000000000..e74a1acc8ea9
--- /dev/null
+++ b/src/hooks/usePaymentOptions.ts
@@ -0,0 +1,234 @@
+import {useEffect, useMemo, useRef} from 'react';
+import {useOnyx} from 'react-native-onyx';
+import type {TupleToUnion} from 'type-fest';
+import * as Expensicons from '@components/Icon/Expensicons';
+import type SettlementButtonProps from '@components/SettlementButton/types';
+import type {PaymentOrApproveOption} from '@libs/PaymentUtils';
+import {formatPaymentMethods} from '@libs/PaymentUtils';
+import getPolicyEmployeeAccountIDs from '@libs/PolicyEmployeeListUtils';
+import {
+    doesReportBelongToWorkspace,
+    isExpenseReport as isExpenseReportUtil,
+    isIndividualInvoiceRoom as isIndividualInvoiceRoomUtil,
+    isInvoiceReport as isInvoiceReportUtil,
+} from '@libs/ReportUtils';
+import Navigation from '@navigation/Navigation';
+import {isCurrencySupportedForDirectReimbursement} from '@userActions/Policy/Policy';
+import CONST from '@src/CONST';
+import ONYXKEYS from '@src/ONYXKEYS';
+import type {LastPaymentMethodType} from '@src/types/onyx';
+import {isEmptyObject} from '@src/types/utils/EmptyObject';
+import isLoadingOnyxValue from '@src/types/utils/isLoadingOnyxValue';
+import useLocalize from './useLocalize';
+import useThemeStyles from './useThemeStyles';
+
+type CurrencyType = TupleToUnion<typeof CONST.DIRECT_REIMBURSEMENT_CURRENCIES>;
+
+type UsePaymentOptionsProps = Pick<
+    SettlementButtonProps,
+    | 'addBankAccountRoute'
+    | 'currency'
+    | 'iouReport'
+    | 'chatReportID'
+    | 'formattedAmount'
+    | 'policyID'
+    | 'onPress'
+    | 'shouldHidePaymentOptions'
+    | 'shouldShowApproveButton'
+    | 'shouldDisableApproveButton'
+    | 'onlyShowPayElsewhere'
+>;
+
+/**
+ * Configures and returns payment options based on the context of the IOU report and user settings.
+ * It considers various conditions such as whether to show payment methods or an approval button, report types, and user preferences on payment methods.
+ * It dynamically generates payment or approval options to ensure the user interface reflects the correct actions possible for the user's current situation.
+ */
+function usePaymentOptions({
+    addBankAccountRoute = '',
+    currency = CONST.CURRENCY.USD,
+    iouReport,
+    chatReportID = '',
+    formattedAmount = '',
+    policyID = '-1',
+    onPress,
+    shouldHidePaymentOptions = false,
+    shouldShowApproveButton = false,
+    shouldDisableApproveButton = false,
+    onlyShowPayElsewhere,
+}: UsePaymentOptionsProps): PaymentOrApproveOption[] {
+    const styles = useThemeStyles();
+    const {translate} = useLocalize();
+
+    // The app would crash due to subscribing to the entire report collection if chatReportID is an empty string. So we should have a fallback ID here.
+    // eslint-disable-next-line rulesdir/no-default-id-values
+    const [chatReport] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${chatReportID || CONST.DEFAULT_NUMBER_ID}`, {canBeMissing: true});
+    const policyEmployeeAccountIDs = policyID ? getPolicyEmployeeAccountIDs(policyID) : [];
+    const reportBelongsToWorkspace = policyID ? doesReportBelongToWorkspace(chatReport, policyEmployeeAccountIDs, policyID) : false;
+    const policyIDKey = reportBelongsToWorkspace ? policyID : CONST.POLICY.ID_FAKE;
+    const [lastPaymentMethod, lastPaymentMethodResult] = useOnyx(ONYXKEYS.NVP_LAST_PAYMENT_METHOD, {
+        canBeMissing: true,
+        selector: (paymentMethod) => {
+            if (typeof paymentMethod?.[policyIDKey] === 'string') {
+                return paymentMethod?.[policyIDKey];
+            }
+            return (paymentMethod?.[policyIDKey] as LastPaymentMethodType)?.lastUsed;
+        },
+    });
+
+    const isLoadingLastPaymentMethod = isLoadingOnyxValue(lastPaymentMethodResult);
+    const [bankAccountList = {}] = useOnyx(ONYXKEYS.BANK_ACCOUNT_LIST, {canBeMissing: true});
+    const [fundList = {}] = useOnyx(ONYXKEYS.FUND_LIST, {canBeMissing: true});
+    const lastPaymentMethodRef = useRef(lastPaymentMethod);
+
+    useEffect(() => {
+        if (isLoadingLastPaymentMethod) {
+            return;
+        }
+        lastPaymentMethodRef.current = lastPaymentMethod;
+        // eslint-disable-next-line react-compiler/react-compiler, react-hooks/exhaustive-deps
+    }, [isLoadingLastPaymentMethod]);
+
+    const isInvoiceReport = (!isEmptyObject(iouReport) && isInvoiceReportUtil(iouReport)) || false;
+    const shouldShowPayWithExpensifyOption = !shouldHidePaymentOptions;
+    const shouldShowPayElsewhereOption = !shouldHidePaymentOptions && !isInvoiceReport;
+    const paymentButtonOptions = useMemo(() => {
+        const buttonOptions = [];
+        const isExpenseReport = isExpenseReportUtil(iouReport);
+        const paymentMethods = {
+            [CONST.IOU.PAYMENT_TYPE.EXPENSIFY]: {
+                text: translate('iou.settleExpensify', {formattedAmount}),
+                icon: Expensicons.Wallet,
+                value: CONST.IOU.PAYMENT_TYPE.EXPENSIFY,
+            },
+            [CONST.IOU.PAYMENT_TYPE.VBBA]: {
+                text: translate('iou.settleExpensify', {formattedAmount}),
+                icon: Expensicons.Wallet,
+                value: CONST.IOU.PAYMENT_TYPE.VBBA,
+            },
+            [CONST.IOU.PAYMENT_TYPE.ELSEWHERE]: {
+                text: translate('iou.payElsewhere', {formattedAmount}),
+                icon: Expensicons.Cash,
+                value: CONST.IOU.PAYMENT_TYPE.ELSEWHERE,
+            },
+        };
+        const approveButtonOption = {
+            text: translate('iou.approve', {formattedAmount}),
+            icon: Expensicons.ThumbsUp,
+            value: CONST.IOU.REPORT_ACTION_TYPE.APPROVE,
+            disabled: !!shouldDisableApproveButton,
+        };
+        const canUseWallet = !isExpenseReport && !isInvoiceReport && currency === CONST.CURRENCY.USD;
+
+        // Only show the Approve button if the user cannot pay the expense
+        if (shouldHidePaymentOptions && shouldShowApproveButton) {
+            return [approveButtonOption];
+        }
+
+        if (onlyShowPayElsewhere) {
+            return [paymentMethods[CONST.IOU.PAYMENT_TYPE.ELSEWHERE]];
+        }
+
+        // To achieve the one tap pay experience we need to choose the correct payment type as default.
+        if (canUseWallet) {
+            buttonOptions.push(paymentMethods[CONST.IOU.PAYMENT_TYPE.EXPENSIFY]);
+        }
+        if (isExpenseReport && shouldShowPayWithExpensifyOption) {
+            buttonOptions.push(paymentMethods[CONST.IOU.PAYMENT_TYPE.VBBA]);
+        }
+        if (shouldShowPayElsewhereOption) {
+            buttonOptions.push(paymentMethods[CONST.IOU.PAYMENT_TYPE.ELSEWHERE]);
+        }
+
+        if (isInvoiceReport) {
+            const formattedPaymentMethods = formatPaymentMethods(bankAccountList, fundList, styles);
+            const isCurrencySupported = isCurrencySupportedForDirectReimbursement(currency as CurrencyType);
+            const getPaymentSubitems = (payAsBusiness: boolean) =>
+                formattedPaymentMethods.map((formattedPaymentMethod) => ({
+                    text: formattedPaymentMethod?.title ?? '',
+                    description: formattedPaymentMethod?.description ?? '',
+                    icon: formattedPaymentMethod?.icon,
+                    onSelected: () => onPress(CONST.IOU.PAYMENT_TYPE.EXPENSIFY, payAsBusiness, formattedPaymentMethod.methodID, formattedPaymentMethod.accountType),
+                    iconStyles: formattedPaymentMethod?.iconStyles,
+                    iconHeight: formattedPaymentMethod?.iconSize,
+                    iconWidth: formattedPaymentMethod?.iconSize,
+                }));
+
+            if (isIndividualInvoiceRoomUtil(chatReport)) {
+                buttonOptions.push({
+                    text: translate('iou.settlePersonal', {formattedAmount}),
+                    icon: Expensicons.User,
+                    value: CONST.IOU.PAYMENT_TYPE.ELSEWHERE,
+                    backButtonText: translate('iou.individual'),
+                    subMenuItems: [
+                        ...(isCurrencySupported ? getPaymentSubitems(false) : []),
+                        {
+                            text: translate('iou.payElsewhere', {formattedAmount: ''}),
+                            icon: Expensicons.Cash,
+                            value: CONST.IOU.PAYMENT_TYPE.ELSEWHERE,
+                            onSelected: () => onPress(CONST.IOU.PAYMENT_TYPE.ELSEWHERE),
+                        },
+                        {
+                            text: translate('workspace.invoices.paymentMethods.addBankAccount'),
+                            icon: Expensicons.Bank,
+                            onSelected: () => Navigation.navigate(addBankAccountRoute),
+                        },
+                    ],
+                });
+            }
+
+            buttonOptions.push({
+                text: translate('iou.settleBusiness', {formattedAmount}),
+                icon: Expensicons.Building,
+                value: CONST.IOU.PAYMENT_TYPE.ELSEWHERE,
+                backButtonText: translate('iou.business'),
+                subMenuItems: [
+                    ...(isCurrencySupported ? getPaymentSubitems(true) : []),
+                    {
+                        text: translate('workspace.invoices.paymentMethods.addBankAccount'),
+                        icon: Expensicons.Bank,
+                        onSelected: () => Navigation.navigate(addBankAccountRoute),
+                    },
+                    {
+                        text: translate('iou.payElsewhere', {formattedAmount: ''}),
+                        icon: Expensicons.Cash,
+                        value: CONST.IOU.PAYMENT_TYPE.ELSEWHERE,
+                        onSelected: () => onPress(CONST.IOU.PAYMENT_TYPE.ELSEWHERE, true),
+                    },
+                ],
+            });
+        }
+
+        if (shouldShowApproveButton) {
+            buttonOptions.push(approveButtonOption);
+        }
+
+        // Put the preferred payment method to the front of the array, so it's shown as default. We assume their last payment method is their preferred.
+        if (lastPaymentMethodRef.current) {
+            return buttonOptions.sort((method) => (method.value === lastPaymentMethod ? -1 : 0));
+        }
+        return buttonOptions;
+        // We don't want to reorder the options when the preferred payment method changes while the button is still visible except for component initialization when the last payment method is not initialized yet.
+        // We need to be sure that onPress should be wrapped in an useCallback to prevent unnecessary updates.
+        // eslint-disable-next-line react-compiler/react-compiler, react-hooks/exhaustive-deps
+    }, [
+        isLoadingLastPaymentMethod,
+        iouReport,
+        translate,
+        formattedAmount,
+        shouldDisableApproveButton,
+        isInvoiceReport,
+        currency,
+        shouldHidePaymentOptions,
+        shouldShowApproveButton,
+        shouldShowPayWithExpensifyOption,
+        shouldShowPayElsewhereOption,
+        chatReport,
+        onPress,
+        onlyShowPayElsewhere,
+    ]);
+
+    return paymentButtonOptions;
+}
+
+export default usePaymentOptions;
diff --git a/src/hooks/useSelectedTransactionsActions.ts b/src/hooks/useSelectedTransactionsActions.ts
index 02bdf3529da6..d244c0abc389 100644
--- a/src/hooks/useSelectedTransactionsActions.ts
+++ b/src/hooks/useSelectedTransactionsActions.ts
@@ -107,7 +107,7 @@ function useSelectedTransactionsActions({
         let canUnholdTransactions = selectedTransactions.length > 0 && isMoneyRequestReport;
 
         selectedTransactions.forEach((selectedTransaction) => {
-            if (!canHoldTransactions && !canHoldTransactions) {
+            if (!canHoldTransactions && !canUnholdTransactions) {
                 return;
             }
 
diff --git a/src/libs/PaymentUtils.ts b/src/libs/PaymentUtils.ts
index cda2520f38b7..97b35e51c311 100644
--- a/src/libs/PaymentUtils.ts
+++ b/src/libs/PaymentUtils.ts
@@ -1,14 +1,28 @@
-import type {ValueOf} from 'type-fest';
+import type {GestureResponderEvent} from 'react-native';
+import type {OnyxEntry} from 'react-native-onyx';
+import type {Merge, ValueOf} from 'type-fest';
+import type {DropdownOption} from '@components/ButtonWithDropdownMenu/types';
 import getBankIcon from '@components/Icon/BankIcons';
+import type {PaymentMethod as KYCPaymentMethod} from '@components/KYCWall/types';
+import type {PopoverMenuItem} from '@components/PopoverMenu';
 import type {ThemeStyles} from '@styles/index';
 import CONST from '@src/CONST';
+import ROUTES from '@src/ROUTES';
+import type {Policy, Report} from '@src/types/onyx';
 import type BankAccount from '@src/types/onyx/BankAccount';
 import type Fund from '@src/types/onyx/Fund';
+import type {PaymentMethodType} from '@src/types/onyx/OriginalMessage';
 import type PaymentMethod from '@src/types/onyx/PaymentMethod';
 import type {ACHAccount} from '@src/types/onyx/Policy';
+import {setPersonalBankAccountContinueKYCOnSuccess} from './actions/BankAccounts';
+import {approveMoneyRequest} from './actions/IOU';
 import {translateLocal} from './Localize';
 import BankAccountModel from './models/BankAccount';
+import Navigation from './Navigation/Navigation';
+import {shouldRestrictUserBillableActions} from './SubscriptionUtils';
 
+type KYCFlowEvent = GestureResponderEvent | KeyboardEvent | undefined;
+type TriggerKYCFlow = (event: KYCFlowEvent, iouPaymentType: PaymentMethodType) => void;
 type AccountType = ValueOf<typeof CONST.PAYMENT_METHODS> | undefined;
 
 /**
@@ -93,4 +107,61 @@ function calculateWalletTransferBalanceFee(currentBalance: number, methodType: s
     return Math.max(calculateFee, transferMethodTypeFeeStructure.MINIMUM_FEE);
 }
 
-export {hasExpensifyPaymentMethod, getPaymentMethodDescription, formatPaymentMethods, calculateWalletTransferBalanceFee};
+/**
+ * Determines the appropriate payment action based on user validation and policy restrictions.
+ * It navigates users to verification pages if necessary, triggers KYC flows for specific payment methods,
+ * handles direct approvals, or proceeds with basic payment processing.
+ */
+const selectPaymentType = (
+    event: KYCFlowEvent,
+    iouPaymentType: PaymentMethodType,
+    triggerKYCFlow: TriggerKYCFlow,
+    policy: OnyxEntry<Policy>,
+    onPress: (paymentType?: PaymentMethodType, payAsBusiness?: boolean, methodID?: number, paymentMethod?: KYCPaymentMethod) => void,
+    isUserValidated?: boolean,
+    confirmApproval?: () => void,
+    iouReport?: OnyxEntry<Report>,
+) => {
+    if (policy && shouldRestrictUserBillableActions(policy.id)) {
+        Navigation.navigate(ROUTES.RESTRICTED_ACTION.getRoute(policy.id));
+        return;
+    }
+
+    if (iouPaymentType === CONST.IOU.PAYMENT_TYPE.EXPENSIFY || iouPaymentType === CONST.IOU.PAYMENT_TYPE.VBBA) {
+        if (!isUserValidated) {
+            Navigation.navigate(ROUTES.SETTINGS_CONTACT_METHOD_VERIFY_ACCOUNT.getRoute(Navigation.getActiveRoute()));
+            return;
+        }
+        triggerKYCFlow(event, iouPaymentType);
+        setPersonalBankAccountContinueKYCOnSuccess(ROUTES.ENABLE_PAYMENTS);
+        return;
+    }
+
+    if (iouPaymentType === CONST.IOU.REPORT_ACTION_TYPE.APPROVE) {
+        if (confirmApproval) {
+            confirmApproval();
+        } else {
+            approveMoneyRequest(iouReport);
+        }
+        return;
+    }
+
+    onPress(iouPaymentType);
+};
+
+type ApproveActionType = Extract<ValueOf<typeof CONST.IOU.REPORT_ACTION_TYPE>, 'approve'>;
+type PaymentOption = PopoverMenuItem & DropdownOption<ValueOf<typeof CONST.IOU.PAYMENT_TYPE>>;
+type PaymentOrApproveOption = Merge<PaymentOption, {value?: PaymentOption['value'] | ApproveActionType}>;
+type SecondaryActionOption = DropdownOption<ValueOf<typeof CONST.REPORT.SECONDARY_ACTIONS>>;
+
+const isSecondaryActionAPaymentOption = (item: PopoverMenuItem): item is PaymentOption => {
+    if (!('value' in item)) {
+        return false;
+    }
+    const payment = item.value as SecondaryActionOption['value'] | PaymentOrApproveOption['value'];
+    const isPaymentInArray = Object.values(CONST.IOU.PAYMENT_TYPE).filter((type) => type === payment);
+    return isPaymentInArray.length > 0;
+};
+
+export {hasExpensifyPaymentMethod, getPaymentMethodDescription, formatPaymentMethods, calculateWalletTransferBalanceFee, selectPaymentType, isSecondaryActionAPaymentOption};
+export type {KYCFlowEvent, TriggerKYCFlow, PaymentOrApproveOption, PaymentOption};
diff --git a/src/libs/ReportPrimaryActionUtils.ts b/src/libs/ReportPrimaryActionUtils.ts
index 5c1b2650e23b..3b038a174ae1 100644
--- a/src/libs/ReportPrimaryActionUtils.ts
+++ b/src/libs/ReportPrimaryActionUtils.ts
@@ -12,9 +12,10 @@ import {
     hasIntegrationAutoSync,
     isPreferredExporter,
 } from './PolicyUtils';
-import {getAllReportActions, getOneTransactionThreadReportID} from './ReportActionsUtils';
+import {getAllReportActions, getOneTransactionThreadReportID, isMoneyRequestAction} from './ReportActionsUtils';
 import {
     canAddTransaction as canAddTransactionUtil,
+    canHoldUnholdReportAction,
     getMoneyRequestSpendBreakdown,
     getParentReport,
     hasExportError as hasExportErrorUtil,
@@ -112,7 +113,7 @@ function isApproveAction(report: Report, reportTransactions: Transaction[], poli
     return false;
 }
 
-function isPayAction(report: Report, policy?: Policy, reportNameValuePairs?: ReportNameValuePairs) {
+function isPrimaryPayAction(report: Report, policy?: Policy, reportNameValuePairs?: ReportNameValuePairs) {
     const isExpenseReport = isExpenseReportUtils(report);
     const isReportPayer = isPayer(getSession(), report, false, policy);
     const arePaymentsEnabled = arePaymentsEnabledUtils(policy);
@@ -264,6 +265,14 @@ function isMarkAsCashAction(report: Report, reportTransactions: Transaction[], v
     return userControlsReport && shouldShowBrokenConnectionViolation;
 }
 
+function getAllExpensesToHoldIfApplicable(report?: Report, reportActions?: ReportAction[]) {
+    if (!report || !reportActions || !hasOnlyHeldExpenses(report?.reportID)) {
+        return [];
+    }
+
+    return reportActions?.filter((action) => isMoneyRequestAction(action) && action.childType === CONST.REPORT.TYPE.CHAT && canHoldUnholdReportAction(action).canUnholdRequest);
+}
+
 function getReportPrimaryAction(
     report: Report,
     reportTransactions: Transaction[],
@@ -272,7 +281,7 @@ function getReportPrimaryAction(
     reportNameValuePairs?: ReportNameValuePairs,
     reportActions?: ReportAction[],
 ): ValueOf<typeof CONST.REPORT.PRIMARY_ACTIONS> | '' {
-    const isPayActionWithAllExpensesHeld = isPayAction(report, policy, reportNameValuePairs) && hasOnlyHeldExpenses(report?.reportID);
+    const isPayActionWithAllExpensesHeld = isPrimaryPayAction(report, policy, reportNameValuePairs) && hasOnlyHeldExpenses(report?.reportID);
 
     if (isAddExpenseAction(report, reportTransactions)) {
         return CONST.REPORT.PRIMARY_ACTIONS.ADD_EXPENSE;
@@ -298,7 +307,7 @@ function getReportPrimaryAction(
         return CONST.REPORT.PRIMARY_ACTIONS.APPROVE;
     }
 
-    if (isPayAction(report, policy, reportNameValuePairs)) {
+    if (isPrimaryPayAction(report, policy, reportNameValuePairs)) {
         return CONST.REPORT.PRIMARY_ACTIONS.PAY;
     }
 
@@ -306,6 +315,10 @@ function getReportPrimaryAction(
         return CONST.REPORT.PRIMARY_ACTIONS.EXPORT_TO_ACCOUNTING;
     }
 
+    if (getAllExpensesToHoldIfApplicable(report, reportActions).length) {
+        return CONST.REPORT.PRIMARY_ACTIONS.REMOVE_HOLD;
+    }
+
     return '';
 }
 
@@ -351,4 +364,4 @@ function getTransactionThreadPrimaryAction(
     return '';
 }
 
-export {getReportPrimaryAction, getTransactionThreadPrimaryAction, isAddExpenseAction};
+export {getReportPrimaryAction, getTransactionThreadPrimaryAction, isAddExpenseAction, isPrimaryPayAction, getAllExpensesToHoldIfApplicable};
diff --git a/src/libs/ReportSecondaryActionUtils.ts b/src/libs/ReportSecondaryActionUtils.ts
index 0086a74844aa..1f044e3def8d 100644
--- a/src/libs/ReportSecondaryActionUtils.ts
+++ b/src/libs/ReportSecondaryActionUtils.ts
@@ -15,10 +15,13 @@ import {
     isPreferredExporter,
 } from './PolicyUtils';
 import {getIOUActionForReportID, getIOUActionForTransactionID, getOneTransactionThreadReportID, isPayAction} from './ReportActionsUtils';
+import {isPrimaryPayAction} from './ReportPrimaryActionUtils';
 import {
     canAddTransaction,
     canEditFieldOfMoneyRequest,
     canEditReportPolicy,
+    canHoldUnholdReportAction,
+    hasOnlyHeldExpenses,
     isArchivedReport,
     isClosedReport as isClosedReportUtils,
     isCurrentUserSubmitter,
@@ -287,16 +290,17 @@ function isHoldAction(report: Report, reportTransactions: Transaction[], reportA
         return false;
     }
 
-    const isTransactionOnHold = isHoldActionForTransaction(report, transaction);
-    return isTransactionOnHold;
+    return !!reportActions && isHoldActionForTransaction(report, transaction, reportActions);
 }
 
-function isHoldActionForTransaction(report: Report, reportTransaction: Transaction): boolean {
+function isHoldActionForTransaction(report: Report, reportTransaction: Transaction, reportActions: ReportAction[]): boolean {
     const isExpenseReport = isExpenseReportUtils(report);
     const isIOUReport = isIOUReportUtils(report);
     const iouOrExpenseReport = isExpenseReport || isIOUReport;
+    const action = getIOUActionForTransactionID(reportActions, reportTransaction.transactionID);
+    const {canHoldRequest} = canHoldUnholdReportAction(action);
 
-    if (!iouOrExpenseReport) {
+    if (!iouOrExpenseReport || !canHoldRequest) {
         return false;
     }
 
@@ -400,6 +404,10 @@ function getSecondaryReportActions(
 ): Array<ValueOf<typeof CONST.REPORT.SECONDARY_ACTIONS>> {
     const options: Array<ValueOf<typeof CONST.REPORT.SECONDARY_ACTIONS>> = [];
 
+    if (isPrimaryPayAction(report, policy, reportNameValuePairs) && hasOnlyHeldExpenses(report?.reportID)) {
+        options.push(CONST.REPORT.SECONDARY_ACTIONS.PAY);
+    }
+
     if (canUseTableReportView && isAddExpenseAction(report, reportTransactions)) {
         options.push(CONST.REPORT.SECONDARY_ACTIONS.ADD_EXPENSE);
     }
@@ -457,10 +465,14 @@ function getSecondaryReportActions(
     return options;
 }
 
-function getSecondaryTransactionThreadActions(parentReport: Report, reportTransaction: Transaction): Array<ValueOf<typeof CONST.REPORT.TRANSACTION_SECONDARY_ACTIONS>> {
+function getSecondaryTransactionThreadActions(
+    parentReport: Report,
+    reportTransaction: Transaction,
+    reportActions: ReportAction[],
+): Array<ValueOf<typeof CONST.REPORT.TRANSACTION_SECONDARY_ACTIONS>> {
     const options: Array<ValueOf<typeof CONST.REPORT.TRANSACTION_SECONDARY_ACTIONS>> = [];
 
-    if (isHoldActionForTransaction(parentReport, reportTransaction)) {
+    if (isHoldActionForTransaction(parentReport, reportTransaction, reportActions)) {
         options.push(CONST.REPORT.TRANSACTION_SECONDARY_ACTIONS.HOLD);
     }
 
diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index 04926b1222ac..f1a155515698 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -3973,6 +3973,21 @@ function canEditReportAction(reportAction: OnyxInputOrEntry<ReportAction>): bool
     );
 }
 
+/**
+ * This function is needed due to the fact that when we first create an empty report, its preview action has an actorAccountID of '0'.
+ * This is not the case when the report is automatically created by adding expenses to the chat where no open report is available.
+ * Can be simplified by comparing actorAccountID to accountID when mentioned issue is no longer a thing on a BE side.
+ */
+function isActionOrReportPreviewOwner(report: Report) {
+    const parentAction = getReportAction(report.parentReportID, report.parentReportActionID);
+    const {accountID} = currentUserPersonalDetails ?? {};
+    const {actorAccountID, actionName, childOwnerAccountID} = parentAction ?? {};
+    if (typeof accountID === 'number' && typeof actorAccountID === 'number' && accountID === actorAccountID) {
+        return true;
+    }
+    return actionName === CONST.REPORT.ACTIONS.TYPE.REPORT_PREVIEW && childOwnerAccountID === accountID;
+}
+
 function canHoldUnholdReportAction(reportAction: OnyxInputOrEntry<ReportAction>): {canHoldRequest: boolean; canUnholdRequest: boolean} {
     if (!isMoneyRequestAction(reportAction)) {
         return {canHoldRequest: false, canUnholdRequest: false};
@@ -4005,22 +4020,20 @@ function canHoldUnholdReportAction(reportAction: OnyxInputOrEntry<ReportAction>)
     const isHoldActionCreator = isHoldCreator(transaction, reportAction.childReportID);
 
     const isTrackExpenseMoneyReport = isTrackExpenseReport(moneyRequestReport);
-    const isActionOwner =
-        typeof parentReportAction?.actorAccountID === 'number' &&
-        typeof currentUserPersonalDetails?.accountID === 'number' &&
-        parentReportAction.actorAccountID === currentUserPersonalDetails?.accountID;
+    const isActionOwner = isActionOrReportPreviewOwner(moneyRequestReport);
     const isApprover = isMoneyRequestReport(moneyRequestReport) && moneyRequestReport?.managerID !== null && currentUserPersonalDetails?.accountID === moneyRequestReport?.managerID;
     const isAdmin = isPolicyAdmin(moneyRequestReport.policyID, allPolicies);
     const isOnHold = isOnHoldTransactionUtils(transaction);
     const isScanning = hasReceiptTransactionUtils(transaction) && isReceiptBeingScanned(transaction);
     const isClosed = isClosedReport(moneyRequestReport);
 
+    const isSubmitted = isProcessingReport(moneyRequestReport);
     const canModifyStatus = !isTrackExpenseMoneyReport && (isAdmin || isActionOwner || isApprover);
     const canModifyUnholdStatus = !isTrackExpenseMoneyReport && (isAdmin || (isActionOwner && isHoldActionCreator) || isApprover);
     const isDeletedParentActionLocal = isEmptyObject(parentReportAction) || isDeletedAction(parentReportAction);
 
     const canHoldOrUnholdRequest = !isRequestSettled && !isApproved && !isDeletedParentActionLocal && !isClosed && !isDeletedParentAction(reportAction);
-    const canHoldRequest = canHoldOrUnholdRequest && !isOnHold && (isRequestIOU || canModifyStatus) && !isScanning;
+    const canHoldRequest = canHoldOrUnholdRequest && !isOnHold && (isRequestIOU || canModifyStatus) && !isScanning && (isSubmitted || isActionOwner);
     const canUnholdRequest = !!(canHoldOrUnholdRequest && isOnHold && (isRequestIOU ? isHoldActionCreator : canModifyUnholdStatus));
 
     return {canHoldRequest, canUnholdRequest};
diff --git a/tests/unit/ReportSecondaryActionUtilsTest.ts b/tests/unit/ReportSecondaryActionUtilsTest.ts
index 64bb57256717..313126654815 100644
--- a/tests/unit/ReportSecondaryActionUtilsTest.ts
+++ b/tests/unit/ReportSecondaryActionUtilsTest.ts
@@ -1,8 +1,12 @@
 import Onyx from 'react-native-onyx';
 import {getSecondaryReportActions, getSecondaryTransactionThreadActions} from '@libs/ReportSecondaryActionUtils';
 import CONST from '@src/CONST';
+import * as ReportActionsUtils from '@src/libs/ReportActionsUtils';
+import {getOriginalMessage} from '@src/libs/ReportActionsUtils';
+import * as ReportUtils from '@src/libs/ReportUtils';
 import ONYXKEYS from '@src/ONYXKEYS';
-import type {Policy, Report, ReportAction, Transaction, TransactionViolation} from '@src/types/onyx';
+import type {OriginalMessageIOU, Policy, Report, ReportAction, Transaction, TransactionViolation} from '@src/types/onyx';
+import {actionR14932} from '../../__mocks__/reportData/actions';
 
 const EMPLOYEE_ACCOUNT_ID = 1;
 const EMPLOYEE_EMAIL = 'employee@mail.com';
@@ -395,7 +399,9 @@ describe('getSecondaryAction', () => {
         } as unknown as Transaction;
         const policy = {} as unknown as Policy;
 
-        const result = getSecondaryReportActions(report, [transaction], {}, policy);
+        jest.spyOn(ReportUtils, 'canHoldUnholdReportAction').mockReturnValueOnce({canHoldRequest: true, canUnholdRequest: true});
+        jest.spyOn(ReportActionsUtils, 'getOneTransactionThreadReportID').mockReturnValueOnce((getOriginalMessage(actionR14932) as OriginalMessageIOU).IOUTransactionID);
+        const result = getSecondaryReportActions(report, [transaction], {}, policy, undefined, [actionR14932]);
         expect(result.includes(CONST.REPORT.SECONDARY_ACTIONS.HOLD)).toBe(true);
     });
 
@@ -668,7 +674,7 @@ describe('getSecondaryTransactionThreadActions', () => {
         const report = {} as unknown as Report;
 
         const result = [CONST.REPORT.TRANSACTION_SECONDARY_ACTIONS.VIEW_DETAILS];
-        expect(getSecondaryTransactionThreadActions(report, {} as Transaction)).toEqual(result);
+        expect(getSecondaryTransactionThreadActions(report, {} as Transaction, [])).toEqual(result);
     });
 
     it('include HOLD option ', () => {
@@ -684,7 +690,8 @@ describe('getSecondaryTransactionThreadActions', () => {
             comment: {},
         } as unknown as Transaction;
 
-        const result = getSecondaryTransactionThreadActions(report, transaction);
+        jest.spyOn(ReportUtils, 'canHoldUnholdReportAction').mockReturnValueOnce({canHoldRequest: true, canUnholdRequest: true});
+        const result = getSecondaryTransactionThreadActions(report, transaction, [actionR14932]);
         expect(result.includes(CONST.REPORT.SECONDARY_ACTIONS.HOLD)).toBe(true);
     });
 
@@ -699,7 +706,7 @@ describe('getSecondaryTransactionThreadActions', () => {
 
         await Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT}${REPORT_ID}`, report);
 
-        const result = getSecondaryTransactionThreadActions(report, {} as Transaction);
+        const result = getSecondaryTransactionThreadActions(report, {} as Transaction, []);
         expect(result.includes(CONST.REPORT.SECONDARY_ACTIONS.DELETE)).toBe(true);
     });
 });