diff --git a/packages/subscription-controller/CHANGELOG.md b/packages/subscription-controller/CHANGELOG.md
index bb8fee31064..9d7f18371dd 100644
--- a/packages/subscription-controller/CHANGELOG.md
+++ b/packages/subscription-controller/CHANGELOG.md
@@ -7,6 +7,10 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [Unreleased]
 
+### Added
+
+- Added SubscriptionController `clearLastSelectedPaymentMethod` method ([#7768](https://github.com/MetaMask/core/pull/7768))
+
 ### Changed
 
 - Bump `@metamask/transaction-controller` from `^62.9.2` to `^62.11.0` ([#7737](https://github.com/MetaMask/core/pull/7737), [#7760](https://github.com/MetaMask/core/pull/7760))
diff --git a/packages/subscription-controller/src/SubscriptionController.test.ts b/packages/subscription-controller/src/SubscriptionController.test.ts
index 2377584f8b9..ef11fb3636c 100644
--- a/packages/subscription-controller/src/SubscriptionController.test.ts
+++ b/packages/subscription-controller/src/SubscriptionController.test.ts
@@ -1762,6 +1762,81 @@ describe('SubscriptionController', () => {
     });
   });
 
+  describe('clearLastSelectedPaymentMethod', () => {
+    it('should clear last selected payment method successfully', async () => {
+      await withController(
+        {
+          state: {
+            lastSelectedPaymentMethod: {
+              [PRODUCT_TYPES.SHIELD]: {
+                type: PAYMENT_TYPES.byCard,
+                plan: RECURRING_INTERVALS.month,
+              },
+            },
+          },
+        },
+        async ({ controller }) => {
+          expect(controller.state.lastSelectedPaymentMethod).toStrictEqual({
+            [PRODUCT_TYPES.SHIELD]: {
+              type: PAYMENT_TYPES.byCard,
+              plan: RECURRING_INTERVALS.month,
+            },
+          });
+
+          controller.clearLastSelectedPaymentMethod(PRODUCT_TYPES.SHIELD);
+
+          expect(controller.state.lastSelectedPaymentMethod).toStrictEqual({});
+        },
+      );
+    });
+
+    it('should do nothing when lastSelectedPaymentMethod is undefined', async () => {
+      await withController(async ({ controller }) => {
+        expect(controller.state.lastSelectedPaymentMethod).toBeUndefined();
+
+        controller.clearLastSelectedPaymentMethod(PRODUCT_TYPES.SHIELD);
+
+        expect(controller.state.lastSelectedPaymentMethod).toBeUndefined();
+      });
+    });
+
+    it('should remove the product key while preserving the state object', async () => {
+      await withController(
+        {
+          state: {
+            lastSelectedPaymentMethod: {
+              [PRODUCT_TYPES.SHIELD]: {
+                type: PAYMENT_TYPES.byCrypto,
+                paymentTokenAddress: '0x123',
+                paymentTokenSymbol: 'USDT',
+                plan: RECURRING_INTERVALS.month,
+              },
+              'test-product-type': {
+                type: PAYMENT_TYPES.byCard,
+              },
+            } as Record<ProductType, CachedLastSelectedPaymentMethod>,
+          },
+        },
+        async ({ controller }) => {
+          expect(
+            controller.state.lastSelectedPaymentMethod?.[PRODUCT_TYPES.SHIELD],
+          ).toBeDefined();
+
+          controller.clearLastSelectedPaymentMethod(PRODUCT_TYPES.SHIELD);
+
+          expect(
+            controller.state.lastSelectedPaymentMethod?.[
+              'test-product-type' as ProductType
+            ],
+          ).toBeDefined();
+          expect(
+            controller.state.lastSelectedPaymentMethod?.[PRODUCT_TYPES.SHIELD],
+          ).toBeUndefined();
+        },
+      );
+    });
+  });
+
   describe('submitSponsorshipIntents', () => {
     const MOCK_SUBMISSION_INTENTS_REQUEST: SubmitSponsorshipIntentsMethodParams =
       {
diff --git a/packages/subscription-controller/src/SubscriptionController.ts b/packages/subscription-controller/src/SubscriptionController.ts
index 43c8e17ec70..2801b04d364 100644
--- a/packages/subscription-controller/src/SubscriptionController.ts
+++ b/packages/subscription-controller/src/SubscriptionController.ts
@@ -111,6 +111,16 @@ export type SubscriptionControllerSubmitSponsorshipIntentsAction = {
   handler: SubscriptionController['submitSponsorshipIntents'];
 };
 
+export type SubscriptionControllerCacheLastSelectedPaymentMethodAction = {
+  type: `${typeof controllerName}:cacheLastSelectedPaymentMethod`;
+  handler: SubscriptionController['cacheLastSelectedPaymentMethod'];
+};
+
+export type SubscriptionControllerClearLastSelectedPaymentMethodAction = {
+  type: `${typeof controllerName}:clearLastSelectedPaymentMethod`;
+  handler: SubscriptionController['clearLastSelectedPaymentMethod'];
+};
+
 export type SubscriptionControllerLinkRewardsAction = {
   type: `${typeof controllerName}:linkRewards`;
   handler: SubscriptionController['linkRewards'];
@@ -139,7 +149,9 @@ export type SubscriptionControllerActions =
   | SubscriptionControllerGetBillingPortalUrlAction
   | SubscriptionControllerSubmitSponsorshipIntentsAction
   | SubscriptionControllerSubmitShieldSubscriptionCryptoApprovalAction
-  | SubscriptionControllerLinkRewardsAction;
+  | SubscriptionControllerLinkRewardsAction
+  | SubscriptionControllerCacheLastSelectedPaymentMethodAction
+  | SubscriptionControllerClearLastSelectedPaymentMethodAction;
 
 export type AllowedActions =
   | AuthenticationController.AuthenticationControllerGetBearerToken
@@ -353,6 +365,16 @@ export class SubscriptionController extends StaticIntervalPollingController()<
       `${controllerName}:linkRewards`,
       this.linkRewards.bind(this),
     );
+
+    this.messenger.registerActionHandler(
+      `${controllerName}:cacheLastSelectedPaymentMethod`,
+      this.cacheLastSelectedPaymentMethod.bind(this),
+    );
+
+    this.messenger.registerActionHandler(
+      `${controllerName}:clearLastSelectedPaymentMethod`,
+      this.clearLastSelectedPaymentMethod.bind(this),
+    );
   }
 
   /**
@@ -714,6 +736,21 @@ export class SubscriptionController extends StaticIntervalPollingController()<
     });
   }
 
+  /**
+   * Clear the last selected payment method for a specific product.
+   *
+   * @param product - The product to clear the payment method for.
+   */
+  clearLastSelectedPaymentMethod(product: ProductType): void {
+    this.update((state) => {
+      if (state.lastSelectedPaymentMethod) {
+        const { [product]: _, ...rest } = state.lastSelectedPaymentMethod;
+        state.lastSelectedPaymentMethod =
+          rest as typeof state.lastSelectedPaymentMethod;
+      }
+    });
+  }
+
   /**
    * Submit sponsorship intents to the Subscription Service backend.
    *
diff --git a/packages/subscription-controller/src/index.ts b/packages/subscription-controller/src/index.ts
index feea002d74b..f219651b544 100644
--- a/packages/subscription-controller/src/index.ts
+++ b/packages/subscription-controller/src/index.ts
@@ -16,6 +16,8 @@ export type {
   SubscriptionControllerOptions,
   SubscriptionControllerStateChangeEvent,
   SubscriptionControllerSubmitSponsorshipIntentsAction,
+  SubscriptionControllerCacheLastSelectedPaymentMethodAction,
+  SubscriptionControllerClearLastSelectedPaymentMethodAction,
   SubscriptionControllerLinkRewardsAction,
   SubscriptionControllerSubmitShieldSubscriptionCryptoApprovalAction,
   AllowedActions,