diff --git a/src/libs/NextStepUtils.ts b/src/libs/NextStepUtils.ts
index db31ab02a3e5..8da35232112d 100644
--- a/src/libs/NextStepUtils.ts
+++ b/src/libs/NextStepUtils.ts
@@ -51,7 +51,7 @@ function parseMessage(messages: Message[] | undefined) {
 }
 
 type BuildNextStepParameters = {
-    isPaidWithWallet?: boolean;
+    isPaidWithExpensify?: boolean;
 };
 
 /**
@@ -59,10 +59,14 @@ type BuildNextStepParameters = {
  *
  * @param report
  * @param predictedNextStatus - a next expected status of the report
- * @param parameters.isPaidWithWallet - Whether a report has been paid with the wallet or outside of Expensify
+ * @param parameters.isPaidWithExpensify - Whether a report has been paid with Expensify or outside
  * @returns nextStep
  */
-function buildNextStep(report: Report | EmptyObject, predictedNextStatus: ValueOf<typeof CONST.REPORT.STATUS_NUM>, {isPaidWithWallet}: BuildNextStepParameters = {}): ReportNextStep | null {
+function buildNextStep(
+    report: Report | EmptyObject,
+    predictedNextStatus: ValueOf<typeof CONST.REPORT.STATUS_NUM>,
+    {isPaidWithExpensify}: BuildNextStepParameters = {},
+): ReportNextStep | null {
     if (!ReportUtils.isExpenseReport(report)) {
         return null;
     }
@@ -317,7 +321,7 @@ function buildNextStep(report: Report | EmptyObject, predictedNextStatus: ValueO
             };
 
             // Paid outside of Expensify
-            if (isPaidWithWallet === false) {
+            if (isPaidWithExpensify === false) {
                 optimisticNextStep.message?.push({text: ' outside of Expensify'});
             }
 
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 94f08e5a682c..fbc124735db3 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -3314,7 +3314,7 @@ function getPayMoneyRequestParams(chatReport: OnyxTypes.Report, iouReport: OnyxT
     }
 
     const currentNextStep = allNextSteps[`${ONYXKEYS.COLLECTION.NEXT_STEP}${iouReport.reportID}`] ?? null;
-    const optimisticNextStep = NextStepUtils.buildNextStep(iouReport, CONST.REPORT.STATUS_NUM.REIMBURSED, {isPaidWithWallet: paymentMethodType === CONST.IOU.PAYMENT_TYPE.EXPENSIFY});
+    const optimisticNextStep = NextStepUtils.buildNextStep(iouReport, CONST.REPORT.STATUS_NUM.REIMBURSED, {isPaidWithExpensify: paymentMethodType === CONST.IOU.PAYMENT_TYPE.VBBA});
 
     const optimisticData: OnyxUpdate[] = [
         {
diff --git a/tests/unit/NextStepUtilsTest.ts b/tests/unit/NextStepUtilsTest.ts
index 5f4b1a6ed96b..6cf8b37aadab 100644
--- a/tests/unit/NextStepUtilsTest.ts
+++ b/tests/unit/NextStepUtilsTest.ts
@@ -519,7 +519,7 @@ describe('libs/NextStepUtils', () => {
                     },
                 ];
 
-                const result = NextStepUtils.buildNextStep(report, CONST.REPORT.STATUS_NUM.REIMBURSED, {isPaidWithWallet: true});
+                const result = NextStepUtils.buildNextStep(report, CONST.REPORT.STATUS_NUM.REIMBURSED, {isPaidWithExpensify: true});
 
                 expect(result).toMatchObject(optimisticNextStep);
             });
@@ -546,7 +546,7 @@ describe('libs/NextStepUtils', () => {
                     },
                 ];
 
-                const result = NextStepUtils.buildNextStep(report, CONST.REPORT.STATUS_NUM.REIMBURSED, {isPaidWithWallet: false});
+                const result = NextStepUtils.buildNextStep(report, CONST.REPORT.STATUS_NUM.REIMBURSED, {isPaidWithExpensify: false});
 
                 expect(result).toMatchObject(optimisticNextStep);
             });