diff --git a/changelog/WOOPMNT-4879 b/changelog/WOOPMNT-4879
new file mode 100644
index 00000000000..53a925becd0
--- /dev/null
+++ b/changelog/WOOPMNT-4879
@@ -0,0 +1,4 @@
+Significance: minor
+Type: dev
+
+Stop using dynamic keys for the database cache and move cached payment methods to user meta.
diff --git a/includes/class-database-cache.php b/includes/class-database-cache.php
index 2a976de4430..2a5a9c11872 100644
--- a/includes/class-database-cache.php
+++ b/includes/class-database-cache.php
@@ -19,26 +19,10 @@ class Database_Cache implements MultiCurrencyCacheInterface {
 	const ACCOUNT_KEY                  = 'wcpay_account_data';
 	const ONBOARDING_FIELDS_DATA_KEY   = 'wcpay_onboarding_fields_data';
 	const BUSINESS_TYPES_KEY           = 'wcpay_business_types_data';
-	const PAYMENT_PROCESS_FACTORS_KEY  = 'wcpay_payment_process_factors';
 	const FRAUD_SERVICES_KEY           = 'wcpay_fraud_services_data';
 	const RECOMMENDED_PAYMENT_METHODS  = 'wcpay_recommended_payment_methods';
 	const ADDRESS_AUTOCOMPLETE_JWT_KEY = 'wcpay_address_autocomplete_jwt';
 
-	/**
-	 * Refresh during AJAX calls is avoided, but white-listing
-	 * a key here will allow the refresh to happen.
-	 *
-	 * @var string[]
-	 */
-	const AJAX_ALLOWED_KEYS = [
-		self::PAYMENT_PROCESS_FACTORS_KEY,
-	];
-
-	/**
-	 * Payment methods cache key prefix. Used in conjunction with the customer_id to cache a customer's payment methods.
-	 */
-	const PAYMENT_METHODS_KEY_PREFIX = 'wcpay_pm_';
-
 	/**
 	 * Dispute status counts cache key.
 	 *
@@ -86,6 +70,26 @@ class Database_Cache implements MultiCurrencyCacheInterface {
 	 */
 	const TRACKING_INFO_KEY = 'wcpay_tracking_info_cache';
 
+	/**
+	 * All cache keys.
+	 *
+	 * @var string[]
+	 */
+	const ALL_KEYS = [
+		self::ACCOUNT_KEY,
+		self::ONBOARDING_FIELDS_DATA_KEY,
+		self::BUSINESS_TYPES_KEY,
+		self::FRAUD_SERVICES_KEY,
+		self::RECOMMENDED_PAYMENT_METHODS,
+		self::DISPUTE_STATUS_COUNTS_KEY,
+		self::DISPUTE_STATUS_COUNTS_KEY_TEST_MODE,
+		self::ACTIVE_DISPUTES_KEY,
+		self::AUTHORIZATION_SUMMARY_KEY,
+		self::AUTHORIZATION_SUMMARY_KEY_TEST_MODE,
+		self::CONNECT_INCENTIVE_KEY,
+		self::TRACKING_INFO_KEY,
+	];
+
 	/**
 	 * Refresh disabled flag, controlling the behaviour of the get_or_add function.
 	 *
@@ -214,72 +218,13 @@ public function delete( string $key ) {
 		}
 	}
 
-	/**
-	 * Deletes all cache entries that are keyed with a certain prefix.
-	 *
-	 * This is useful when you use dynamic cache keys.
-	 *
-	 * Note: Only key prefixes with known, static prefixes are allowed, for protection purposes.
-	 *
-	 * @param string $key_prefix The cache key prefix.
-	 *
-	 * @return void
-	 */
-	public function delete_by_prefix( string $key_prefix ) {
-		// Protection against accidentally deleting all options or options that are not related to WCPay caching.
-		// Feel free to update this statement as more prefix cache keys are used.
-		$allowed_base_prefixes = [
-			self::PAYMENT_METHODS_KEY_PREFIX,
-			self::ONBOARDING_FIELDS_DATA_KEY,
-			self::RECOMMENDED_PAYMENT_METHODS,
-		];
-		$is_allowed            = false;
-		foreach ( $allowed_base_prefixes as $allowed_base_prefix ) {
-			if ( strncmp( $key_prefix, $allowed_base_prefix, strlen( $allowed_base_prefix ) ) === 0 ) {
-				$is_allowed = true;
-				break;
-			}
-		}
-		if ( ! $is_allowed ) {
-			return; // Maybe throw exception here...
-		}
-
-		global $wpdb;
-
-		$options = $wpdb->get_results( $wpdb->prepare( "SELECT option_name FROM $wpdb->options WHERE option_name LIKE %s", $key_prefix . '%' ) );
-		foreach ( $options as $option ) {
-			$this->delete( $option->option_name );
-		}
-	}
-
 	/**
 	 * Delete all known cache entries.
 	 */
 	public function delete_all() {
-		$keys = [
-			self::ACCOUNT_KEY,
-			self::ONBOARDING_FIELDS_DATA_KEY,
-			self::BUSINESS_TYPES_KEY,
-			self::PAYMENT_PROCESS_FACTORS_KEY,
-			self::FRAUD_SERVICES_KEY,
-			self::RECOMMENDED_PAYMENT_METHODS,
-			self::DISPUTE_STATUS_COUNTS_KEY,
-			self::DISPUTE_STATUS_COUNTS_KEY_TEST_MODE,
-			self::ACTIVE_DISPUTES_KEY,
-			self::AUTHORIZATION_SUMMARY_KEY,
-			self::AUTHORIZATION_SUMMARY_KEY_TEST_MODE,
-			self::CONNECT_INCENTIVE_KEY,
-			self::TRACKING_INFO_KEY,
-		];
-
-		foreach ( $keys as $key ) {
+		foreach ( self::ALL_KEYS as $key ) {
 			$this->delete( $key );
 		}
-
-		// Delete prefix-based keys.
-		$this->delete_by_prefix( self::PAYMENT_METHODS_KEY_PREFIX );
-		$this->delete_by_prefix( self::ONBOARDING_FIELDS_DATA_KEY ); // It can be prefixed with the locale.
-		$this->delete_by_prefix( self::RECOMMENDED_PAYMENT_METHODS ); // It can be prefixed with the locale.
 	}
 
 	/**
@@ -325,7 +270,7 @@ private function should_refresh_cache( string $key, $cache_contents, callable $v
 		// Do not refresh if doing ajax or the refresh has been disabled (running an AS job).
 		if (
 			defined( 'DOING_CRON' )
-			|| ( wp_doing_ajax() && ! in_array( $key, self::AJAX_ALLOWED_KEYS, true ) )
+			|| ( wp_doing_ajax() )
 			|| $this->refresh_disabled ) {
 			return false;
 		}
@@ -484,9 +429,6 @@ private function get_ttl( string $key, array $cache_contents ): int {
 				// If no orders, cache for an hour to check again soon.
 				$ttl = $cache_contents['data'] ? DAY_IN_SECONDS * 90 : HOUR_IN_SECONDS;
 				break;
-			case self::PAYMENT_PROCESS_FACTORS_KEY:
-				$ttl = 2 * HOUR_IN_SECONDS;
-				break;
 			case self::TRACKING_INFO_KEY:
 				$ttl = $cache_contents['errored'] ? 2 * MINUTE_IN_SECONDS : MONTH_IN_SECONDS;
 				break;
diff --git a/includes/class-wc-payment-gateway-wcpay.php b/includes/class-wc-payment-gateway-wcpay.php
index 78780e977c0..c85d2654a92 100644
--- a/includes/class-wc-payment-gateway-wcpay.php
+++ b/includes/class-wc-payment-gateway-wcpay.php
@@ -1872,7 +1872,7 @@ public function maybe_process_upe_redirect() {
 			if ( $this->is_setup_intent_success_creation_redirection() ) {
 					wc_add_notice( __( 'Payment method successfully added.', 'woocommerce-payments' ) );
 					$user = wp_get_current_user();
-					$this->customer_service->clear_cached_payment_methods_for_user( $user->ID );
+					$this->token_service->clear_cached_payment_methods_for_user( $user->ID );
 			}
 			return;
 		}
diff --git a/includes/class-wc-payments-customer-service.php b/includes/class-wc-payments-customer-service.php
index d0f97e061c0..ff1a9ab5a68 100644
--- a/includes/class-wc-payments-customer-service.php
+++ b/includes/class-wc-payments-customer-service.php
@@ -5,7 +5,6 @@
  * @package WooCommerce\Payments
  */
 
-use WCPay\Database_Cache;
 use WCPay\Exceptions\API_Exception;
 use WCPay\Logger;
 use WCPay\Constants\Payment_Method;
@@ -57,13 +56,6 @@ class WC_Payments_Customer_Service {
 	 */
 	private $account;
 
-	/**
-	 * Database_Cache instance to get information about the account
-	 *
-	 * @var Database_Cache
-	 */
-	private $database_cache;
-
 	/**
 	 * WC_Payments_Session_Service instance for working with session information
 	 *
@@ -83,20 +75,17 @@ class WC_Payments_Customer_Service {
 	 *
 	 * @param WC_Payments_API_Client      $payments_api_client Payments API client.
 	 * @param WC_Payments_Account         $account WC_Payments_Account instance.
-	 * @param Database_Cache              $database_cache Database_Cache instance.
 	 * @param WC_Payments_Session_Service $session_service Session Service class instance.
 	 * @param WC_Payments_Order_Service   $order_service Order Service class instance.
 	 */
 	public function __construct(
 		WC_Payments_API_Client $payments_api_client,
 		WC_Payments_Account $account,
-		Database_Cache $database_cache,
 		WC_Payments_Session_Service $session_service,
 		WC_Payments_Order_Service $order_service
 	) {
 		$this->payments_api_client = $payments_api_client;
 		$this->account             = $account;
-		$this->database_cache      = $database_cache;
 		$this->session_service     = $session_service;
 		$this->order_service       = $order_service;
 	}
@@ -262,23 +251,8 @@ public function get_payment_methods_for_customer( $customer_id, $type = 'card' )
 			return [];
 		}
 
-		$cache_payment_methods = ! WC_Payments::is_network_saved_cards_enabled();
-		$cache_key             = Database_Cache::PAYMENT_METHODS_KEY_PREFIX . $customer_id . '_' . $type;
-
-		if ( $cache_payment_methods ) {
-			$payment_methods = $this->database_cache->get( $cache_key );
-			if ( is_array( $payment_methods ) ) {
-				return $payment_methods;
-			}
-		}
-
 		try {
-			$payment_methods = $this->payments_api_client->get_payment_methods( $customer_id, $type )['data'];
-			if ( $cache_payment_methods ) {
-				$this->database_cache->add( $cache_key, $payment_methods );
-			}
-			return $payment_methods;
-
+			return $this->payments_api_client->get_payment_methods( $customer_id, $type )['data'];
 		} catch ( API_Exception $e ) {
 			// If we failed to find the payment methods, we can simply return empty payment methods as this customer
 			// will be recreated when the user successfully adds a payment method.
@@ -310,23 +284,6 @@ public function update_payment_method_with_billing_details_from_order( $payment_
 		}
 	}
 
-	/**
-	 * Clear payment methods cache for a user.
-	 *
-	 * @param int $user_id WC user ID.
-	 */
-	public function clear_cached_payment_methods_for_user( $user_id ) {
-		if ( WC_Payments::is_network_saved_cards_enabled() ) {
-			return; // No need to do anything, payment methods will never be cached in this case.
-		}
-
-		$retrievable_payment_method_types = [ Payment_Method::CARD, Payment_Method::LINK, Payment_Method::SEPA ];
-		$customer_id                      = $this->get_customer_id_by_user_id( $user_id );
-		foreach ( $retrievable_payment_method_types as $type ) {
-			$this->database_cache->delete( Database_Cache::PAYMENT_METHODS_KEY_PREFIX . $customer_id . '_' . $type );
-		}
-	}
-
 	/**
 	 * Given a WC_Order or WC_Customer, returns an array representing a Stripe customer object.
 	 * At least one parameter has to not be null.
@@ -387,15 +344,6 @@ public static function map_customer_data( ?WC_Order $wc_order = null, ?WC_Custom
 		return $data;
 	}
 
-	/**
-	 * Delete all saved payment methods that are stored inside the database cache driver.
-	 *
-	 * @return void
-	 */
-	public function delete_cached_payment_methods() {
-		$this->database_cache->delete_by_prefix( Database_Cache::PAYMENT_METHODS_KEY_PREFIX );
-	}
-
 	/**
 	 * Recreates the customer for this user.
 	 *
diff --git a/includes/class-wc-payments-onboarding-service.php b/includes/class-wc-payments-onboarding-service.php
index 83ded781b16..86262d02066 100644
--- a/includes/class-wc-payments-onboarding-service.php
+++ b/includes/class-wc-payments-onboarding-service.php
@@ -124,23 +124,16 @@ public function init_hooks() {
 	 * The data is retrieved from the server and is cached. If we can't retrieve, we will use whatever data we have.
 	 *
 	 * @param string $locale The locale to use to i18n the data.
-	 * @param bool   $force_refresh Forces data to be fetched from the server, rather than using the cache.
-	 *
 	 * @return ?array Fields data, or NULL if failed to retrieve.
 	 */
-	public function get_fields_data( string $locale = '', bool $force_refresh = false ): ?array {
+	public function get_fields_data( string $locale = '' ): ?array {
 		// If we don't have a server connection, return what data we currently have, regardless of expiry.
 		if ( ! $this->payments_api_client->is_server_connected() ) {
 			return $this->database_cache->get( Database_Cache::ONBOARDING_FIELDS_DATA_KEY, true );
 		}
 
-		$cache_key = Database_Cache::ONBOARDING_FIELDS_DATA_KEY;
-		if ( ! empty( $locale ) ) {
-			$cache_key .= '__' . $locale;
-		}
-
 		return $this->database_cache->get_or_add(
-			$cache_key,
+			Database_Cache::ONBOARDING_FIELDS_DATA_KEY,
 			function () use ( $locale ) {
 				try {
 					// We will use the language for the current user (defaults to the site language).
@@ -150,10 +143,19 @@ function () use ( $locale ) {
 					return null;
 				}
 
+				// Store the locale, so if a different one is requested, we can invalidate the cache.
+				$fields_data['__locale'] = $locale;
+
 				return $fields_data;
 			},
-			'__return_true',
-			$force_refresh
+			function ( $data ) use ( $locale ) {
+				// The locale used to be part of a dynamic key. If it is not set, the data is old & invalid.
+				return (
+					is_array( $data )
+					&& isset( $data['__locale'] )
+					&& $data['__locale'] === $locale
+				);
+			}
 		);
 	}
 
@@ -167,23 +169,38 @@ function () use ( $locale ) {
 	 *                NULL on retrieval or validation error.
 	 */
 	public function get_recommended_payment_methods( string $country_code, string $locale = '' ): ?array {
-		$cache_key = Database_Cache::RECOMMENDED_PAYMENT_METHODS . '__' . $country_code;
-		if ( ! empty( $locale ) ) {
-			$cache_key .= '__' . $locale;
-		}
-
-		return \WC_Payments::get_database_cache()->get_or_add(
-			$cache_key,
+		$cached_data = \WC_Payments::get_database_cache()->get_or_add(
+			Database_Cache::RECOMMENDED_PAYMENT_METHODS,
 			function () use ( $country_code, $locale ) {
 				try {
-					return $this->payments_api_client->get_recommended_payment_methods( $country_code, $locale );
+					$payment_methods = $this->payments_api_client->get_recommended_payment_methods( $country_code, $locale );
+
+					// Indicate that the cached value is specific for the given locale and country code.
+					return [
+						'payment_methods' => $payment_methods,
+						'__locale'        => $locale,
+						'__country_code'  => $country_code,
+					];
 				} catch ( API_Exception $e ) {
 					// Return NULL to signal retrieval error.
 					return null;
 				}
 			},
-			'is_array'
+			function ( $data ) use ( $locale, $country_code ) {
+				// The locale and country code used to be part of a dynamic key.
+				// If either is not set, the data is old & invalid.
+				return (
+					is_array( $data )
+					&& isset( $data['payment_methods'] )
+					&& isset( $data['__locale'] )
+					&& isset( $data['__country_code'] )
+					&& $data['__locale'] === $locale
+					&& $data['__country_code'] === $country_code
+				);
+			}
 		);
+
+		return $cached_data['payment_methods'] ?? null;
 	}
 
 	/**
@@ -418,17 +435,13 @@ public function finalize_embedded_kyc( string $locale, string $source, array $ac
 	/**
 	 * Gets and caches the business types per country from the server.
 	 *
-	 * @param bool $force_refresh Forces data to be fetched from the server, rather than using the cache.
-	 *
 	 * @return array|bool Business types, or false if failed to retrieve.
 	 */
-	public function get_cached_business_types( bool $force_refresh = false ) {
+	public function get_cached_business_types() {
 		if ( ! $this->payments_api_client->is_server_connected() ) {
 			return [];
 		}
 
-		$refreshed = false;
-
 		$business_types = $this->database_cache->get_or_add(
 			Database_Cache::BUSINESS_TYPES_KEY,
 			function () {
@@ -445,9 +458,7 @@ function () {
 
 				return $business_types;
 			},
-			[ $this, 'is_valid_cached_business_types' ],
-			$force_refresh,
-			$refreshed
+			[ $this, 'is_valid_cached_business_types' ]
 		);
 
 		if ( null === $business_types ) {
@@ -908,12 +919,9 @@ public function cleanup_on_account_reset() {
 	 */
 	public function cleanup_on_account_onboarded() {
 		// Delete the onboarding fields data since it is used only during the initial onboarding.
-		// Delete it by prefix since it can have entries suffixed with the user locale.
-		$this->database_cache->delete_by_prefix( Database_Cache::ONBOARDING_FIELDS_DATA_KEY );
-
+		$this->database_cache->delete( Database_Cache::ONBOARDING_FIELDS_DATA_KEY );
 		$this->database_cache->delete( Database_Cache::BUSINESS_TYPES_KEY );
-		// Delete it by prefix since it can have entries suffixed with the user locale.
-		$this->database_cache->delete_by_prefix( Database_Cache::RECOMMENDED_PAYMENT_METHODS );
+		$this->database_cache->delete( Database_Cache::RECOMMENDED_PAYMENT_METHODS );
 	}
 
 	/**
diff --git a/includes/class-wc-payments-token-service.php b/includes/class-wc-payments-token-service.php
index 283a0d7851a..d49149ebefd 100644
--- a/includes/class-wc-payments-token-service.php
+++ b/includes/class-wc-payments-token-service.php
@@ -24,6 +24,8 @@ class WC_Payments_Token_Service {
 		Payment_Method::LINK => WC_Payment_Gateway_WCPay::GATEWAY_ID,
 	];
 
+	const CACHED_PAYMENT_METHODS_META_KEY = '_wcpay_payment_methods';
+
 	/**
 	 * Client for making requests to the WooCommerce Payments API
 	 *
@@ -71,7 +73,7 @@ public function init_hooks() {
 	 */
 	public function add_token_to_user( $payment_method, $user ) {
 		// Clear cached payment methods.
-		$this->customer_service->clear_cached_payment_methods_for_user( $user->ID );
+		$this->clear_cached_payment_methods_for_user( $user->ID );
 
 		switch ( $payment_method['type'] ) {
 			case Payment_Method::SEPA:
@@ -133,6 +135,46 @@ public function is_valid_payment_method_type_for_gateway( $payment_method_type,
 		return self::REUSABLE_GATEWAYS_BY_PAYMENT_METHOD[ $payment_method_type ] === $gateway_id;
 	}
 
+	/**
+	 * Clear payment methods cache for a user.
+	 *
+	 * @param int $user_id WC user ID.
+	 */
+	public function clear_cached_payment_methods_for_user( $user_id ) {
+		if ( WC_Payments::is_network_saved_cards_enabled() ) {
+			return; // No need to do anything, payment methods will never be cached in this case.
+		}
+
+		delete_user_meta( $user_id, self::CACHED_PAYMENT_METHODS_META_KEY );
+	}
+
+	/**
+	 * Clear all cached payment methods.
+	 * Used when account data is updated and all payment method caches need to be cleared.
+	 */
+	public function clear_all_cached_payment_methods() {
+		global $wpdb;
+
+		if ( WC_Payments::is_network_saved_cards_enabled() ) {
+			return; // No need to do anything, payment methods will never be cached in this case.
+		}
+
+		// Tap straight into the database and delete the meta key for all users.
+		$wpdb->query( $wpdb->prepare( "DELETE FROM $wpdb->usermeta WHERE meta_key = %s", self::CACHED_PAYMENT_METHODS_META_KEY ) );
+
+		/**
+		 * Legacy: Payment methods were stored in the database cache with the `wcpay_pm_` prefix.
+		 * When cleaning up cached payment methods, we need to flush the database from old cached data as well.
+		 *
+		 * This method gets called for account updates. Even though those are rare, they should be a
+		 * good opportunity to clean up old cached data.
+		 */
+		$options = $wpdb->get_results( "SELECT option_name FROM $wpdb->options WHERE option_name LIKE 'wcpay_pm_%'" );
+		foreach ( $options as $option ) {
+			delete_option( $option->option_name );
+		}
+	}
+
 	/**
 	 * Gets saved tokens from API if they don't already exist in WooCommerce.
 	 *
@@ -168,16 +210,7 @@ public function woocommerce_get_customer_payment_tokens( $tokens, $user_id, $gat
 				}
 			}
 
-			$retrievable_payment_method_types = $this->get_retrievable_payment_method_types( $gateway_id );
-
-			$payment_methods = [];
-
-			foreach ( $retrievable_payment_method_types as $type ) {
-				$payment_methods[] = $this->customer_service->get_payment_methods_for_customer( $customer_id, $type );
-			}
-
-			$payment_methods = array_merge( ...$payment_methods );
-
+			$payment_methods = $this->get_payment_methods_from_stripe( $user_id, $customer_id, $gateway_id );
 		} catch ( Exception $e ) {
 			Logger::error( 'Failed to fetch payment methods for customer.' . $e );
 			return $tokens;
@@ -210,6 +243,63 @@ public function woocommerce_get_customer_payment_tokens( $tokens, $user_id, $gat
 		return $tokens;
 	}
 
+	/**
+	 * Gets payment methods from Stripe.
+	 *
+	 * @param string $user_id     WP user ID.
+	 * @param string $customer_id WC customer ID.
+	 * @param string $gateway_id  WC gateway ID.
+	 * @return array Payment methods.
+	 */
+	private function get_payment_methods_from_stripe( $user_id, $customer_id, $gateway_id ) {
+		$cache_key   = 'payment_methods_' . $gateway_id;
+		$cached_data = get_user_meta( $user_id, self::CACHED_PAYMENT_METHODS_META_KEY, true );
+
+		// Start by checking the customer ID. If it is different, bust the cache.
+		if (
+			is_array( $cached_data )
+			&& (
+				( isset( $cached_data['customer_id'] ) && $cached_data['customer_id'] !== $customer_id )
+				|| ! isset( $cached_data['customer_id'] )
+			)
+		) {
+			$cached_data = [];
+		}
+
+		// Now, if there is cached data, then it is for the right customer. Check for the gateway-specific cache key.
+		if (
+			is_array( $cached_data )
+			&& isset( $cached_data[ $cache_key ] )
+			&& is_array( $cached_data[ $cache_key ] )
+		) {
+			return $cached_data[ $cache_key ];
+		}
+
+		// Proceed loading payment methods.
+		$retrievable_payment_method_types = $this->get_retrievable_payment_method_types( $gateway_id );
+
+		$payment_methods = [];
+		foreach ( $retrievable_payment_method_types as $type ) {
+			$type_methods = $this->customer_service->get_payment_methods_for_customer( $customer_id, $type );
+			if ( is_array( $type_methods ) ) {
+				$payment_methods = array_merge( $payment_methods, $type_methods );
+			}
+		}
+
+		// Cache the payment methods. Combine with existing data in case there are cached PMs for other gateway IDs.
+		$new_cache = [
+			'customer_id' => $customer_id,
+			$cache_key    => $payment_methods,
+		];
+		update_user_meta(
+			$user_id,
+			self::CACHED_PAYMENT_METHODS_META_KEY,
+			array_merge( $cached_data ? $cached_data : [], $new_cache )
+		);
+
+		return $payment_methods;
+	}
+
 	/**
 	 * Retrieves the payment method types for which tokens should be retrieved.
 	 *
@@ -310,7 +400,7 @@ public function woocommerce_payment_token_deleted( $token_id, $token ) {
 		try {
 			$this->payments_api_client->detach_payment_method( $token->get_token() );
 			// Clear cached payment methods.
-			$this->customer_service->clear_cached_payment_methods_for_user( $token->get_user_id() );
+			$this->clear_cached_payment_methods_for_user( $token->get_user_id() );
 		} catch ( Exception $e ) {
 			Logger::log( 'Error detaching payment method:' . $e->getMessage() );
 		}
@@ -329,7 +419,7 @@ public function woocommerce_payment_token_set_default( $token_id, $token ) {
 			if ( $customer_id ) {
 				$this->customer_service->set_default_payment_method_for_customer( $customer_id, $token->get_token() );
 				// Clear cached payment methods.
-				$this->customer_service->clear_cached_payment_methods_for_user( $token->get_user_id() );
+				$this->clear_cached_payment_methods_for_user( $token->get_user_id() );
 			}
 		}
 	}
diff --git a/includes/class-wc-payments-webhook-processing-service.php b/includes/class-wc-payments-webhook-processing-service.php
index 37218744de6..bcf4bc6bc7e 100644
--- a/includes/class-wc-payments-webhook-processing-service.php
+++ b/includes/class-wc-payments-webhook-processing-service.php
@@ -74,13 +74,6 @@ class WC_Payments_Webhook_Processing_Service {
 	 */
 	private $wcpay_gateway;
 
-	/**
-	 * WC_Payment_Gateway_WCPay
-	 *
-	 * @var WC_Payments_Customer_Service
-	 */
-	private $customer_service;
-
 	/**
 	 * Database_Cache instance.
 	 *
@@ -95,6 +88,13 @@ class WC_Payments_Webhook_Processing_Service {
 	 */
 	private $onboarding_service;
 
+	/**
+	 * WC_Payments_Token_Service instance.
+	 *
+	 * @var WC_Payments_Token_Service
+	 */
+	private $token_service;
+
 	/**
 	 * WC_Payments_Webhook_Processing_Service constructor.
 	 *
@@ -105,9 +105,9 @@ class WC_Payments_Webhook_Processing_Service {
 	 * @param WC_Payments_Order_Service                       $order_service       WC_Payments_Order_Service instance.
 	 * @param WC_Payments_In_Person_Payments_Receipts_Service $receipt_service     WC_Payments_In_Person_Payments_Receipts_Service instance.
 	 * @param WC_Payment_Gateway_WCPay                        $wcpay_gateway       WC_Payment_Gateway_WCPay instance.
-	 * @param WC_Payments_Customer_Service                    $customer_service    WC_Payments_Customer_Service instance.
 	 * @param Database_Cache                                  $database_cache      Database_Cache instance.
 	 * @param WC_Payments_Onboarding_Service                  $onboarding_service  WC_Payments_Onboarding_Service instance.
+	 * @param WC_Payments_Token_Service                       $token_service       WC_Payments_Token_Service instance.
 	 */
 	public function __construct(
 		WC_Payments_API_Client $api_client,
@@ -117,9 +117,9 @@ public function __construct(
 		WC_Payments_Order_Service $order_service,
 		WC_Payments_In_Person_Payments_Receipts_Service $receipt_service,
 		WC_Payment_Gateway_WCPay $wcpay_gateway,
-		WC_Payments_Customer_Service $customer_service,
 		Database_Cache $database_cache,
-		WC_Payments_Onboarding_Service $onboarding_service
+		WC_Payments_Onboarding_Service $onboarding_service,
+		WC_Payments_Token_Service $token_service
 	) {
 		$this->wcpay_db            = $wcpay_db;
 		$this->account             = $account;
@@ -128,9 +128,9 @@ public function __construct(
 		$this->api_client          = $api_client;
 		$this->receipt_service     = $receipt_service;
 		$this->wcpay_gateway       = $wcpay_gateway;
-		$this->customer_service    = $customer_service;
 		$this->database_cache      = $database_cache;
 		$this->onboarding_service  = $onboarding_service;
+		$this->token_service       = $token_service;
 	}
 
 	/**
@@ -192,7 +192,7 @@ public function process( array $event_body ) {
 				break;
 			case 'account.updated':
 				$this->account->refresh_account_data();
-				$this->customer_service->delete_cached_payment_methods();
+				$this->token_service->clear_all_cached_payment_methods();
 				break;
 			case 'account.deleted':
 				$this->onboarding_service->cleanup_on_account_reset();
@@ -204,6 +204,9 @@ public function process( array $event_body ) {
 
 				// Refetch the account data to allow the platform to drive the available next steps.
 				$this->account->refresh_account_data();
+
+				// Use the opportunity to clear cached payment methods.
+				$this->token_service->clear_all_cached_payment_methods();
 				break;
 			case 'wcpay.notification':
 				$this->process_wcpay_notification( $event_body );
diff --git a/includes/class-wc-payments.php b/includes/class-wc-payments.php
index 530a043a2a4..893f2de881a 100644
--- a/includes/class-wc-payments.php
+++ b/includes/class-wc-payments.php
@@ -550,7 +550,7 @@ public static function init() {
 		self::$redirect_service                     = new WC_Payments_Redirect_Service( self::$api_client );
 		self::$onboarding_service                   = new WC_Payments_Onboarding_Service( self::$api_client, self::$database_cache, self::$session_service );
 		self::$account                              = new WC_Payments_Account( self::$api_client, self::$database_cache, self::$action_scheduler_service, self::$onboarding_service, self::$redirect_service );
-		self::$customer_service                     = new WC_Payments_Customer_Service( self::$api_client, self::$account, self::$database_cache, self::$session_service, self::$order_service );
+		self::$customer_service                     = new WC_Payments_Customer_Service( self::$api_client, self::$account, self::$session_service, self::$order_service );
 		self::$token_service                        = new WC_Payments_Token_Service( self::$api_client, self::$customer_service );
 		self::$remote_note_service                  = new WC_Payments_Remote_Note_Service( WC_Data_Store::load( 'admin-note' ) );
 		self::$fraud_service                        = new WC_Payments_Fraud_Service( self::$api_client, self::$customer_service, self::$account, self::$session_service, self::$database_cache );
@@ -636,10 +636,10 @@ public static function init() {
 		self::$card_gateway->init_hooks();
 		self::$wc_payments_checkout->init_hooks();
 
-		self::$webhook_processing_service  = new WC_Payments_Webhook_Processing_Service( self::$api_client, self::$db_helper, self::$account, self::$remote_note_service, self::$order_service, self::$in_person_payments_receipts_service, self::get_gateway(), self::$customer_service, self::$database_cache, self::$onboarding_service );
+		self::$webhook_processing_service  = new WC_Payments_Webhook_Processing_Service( self::$api_client, self::$db_helper, self::$account, self::$remote_note_service, self::$order_service, self::$in_person_payments_receipts_service, self::get_gateway(), self::$database_cache, self::$onboarding_service, self::$token_service );
 		self::$webhook_reliability_service = new WC_Payments_Webhook_Reliability_Service( self::$api_client, self::$action_scheduler_service, self::$webhook_processing_service );
 
-		self::$customer_service_api = new WC_Payments_Customer_Service_API( self::$customer_service );
+		self::$customer_service_api = new WC_Payments_Customer_Service_API( self::$customer_service, self::$token_service );
 
 		self::$currency_manager = new WC_Payments_Currency_Manager( self::get_gateway() );
 		self::$currency_manager->init_hooks();
diff --git a/includes/core/service/class-wc-payments-customer-service-api.php b/includes/core/service/class-wc-payments-customer-service-api.php
index b8d70deea58..e55ea5c5167 100644
--- a/includes/core/service/class-wc-payments-customer-service-api.php
+++ b/includes/core/service/class-wc-payments-customer-service-api.php
@@ -12,6 +12,7 @@
 use WP_User;
 use WC_Customer;
 use WC_Order;
+use WC_Payments_Token_Service;
 
 defined( 'ABSPATH' ) || exit;
 
@@ -27,13 +28,25 @@ class WC_Payments_Customer_Service_API {
 	 */
 	private $customer_service;
 
+	/**
+	 * Internal Token_Service instance to invoke.
+	 *
+	 * @var WC_Payments_Token_Service
+	 */
+	private $token_service;
+
 	/**
 	 * Class constructor
 	 *
 	 * @param WC_Payments_Customer_Service $customer_service Customer Service instance.
+	 * @param WC_Payments_Token_Service    $token_service Token Service instance.
 	 */
-	public function __construct( WC_Payments_Customer_Service $customer_service ) {
+	public function __construct(
+		WC_Payments_Customer_Service $customer_service,
+		WC_Payments_Token_Service $token_service
+	) {
 		$this->customer_service = $customer_service;
+		$this->token_service    = $token_service;
 	}
 
 	/**
@@ -114,7 +127,7 @@ public function update_payment_method_with_billing_details_from_order( $payment_
 	 * @param int $user_id WC user ID.
 	 */
 	public function clear_cached_payment_methods_for_user( $user_id ) {
-		return $this->customer_service->clear_cached_payment_methods_for_user( $user_id );
+		return $this->token_service->clear_cached_payment_methods_for_user( $user_id );
 	}
 
 	/**
@@ -136,7 +149,7 @@ public static function map_customer_data( WC_Order $wc_order, WC_Customer $wc_cu
 	 * @return void
 	 */
 	public function delete_cached_payment_methods() {
-		$this->customer_service->delete_cached_payment_methods();
+		$this->token_service->clear_all_cached_payment_methods();
 	}
 
 	/**
diff --git a/tests/unit/admin/test-class-wc-rest-payments-settings-controller.php b/tests/unit/admin/test-class-wc-rest-payments-settings-controller.php
index 99854d40ef1..9f8b409dd9b 100644
--- a/tests/unit/admin/test-class-wc-rest-payments-settings-controller.php
+++ b/tests/unit/admin/test-class-wc-rest-payments-settings-controller.php
@@ -129,7 +129,7 @@ public function set_up() {
 		$this->mock_wcpay_account                = $this->createMock( WC_Payments_Account::class );
 		$this->mock_session_service              = $this->createMock( WC_Payments_Session_Service::class );
 		$order_service                           = new WC_Payments_Order_Service( $this->mock_api_client );
-		$customer_service                        = new WC_Payments_Customer_Service( $this->mock_api_client, $this->mock_wcpay_account, $this->mock_cache, $this->mock_session_service, $order_service );
+		$customer_service                        = new WC_Payments_Customer_Service( $this->mock_api_client, $this->mock_wcpay_account, $this->mock_session_service, $order_service );
 		$token_service                           = new WC_Payments_Token_Service( $this->mock_api_client, $customer_service );
 		$compatibility_service                   = new Compatibility_Service( $this->mock_api_client );
 		$action_scheduler_service                = new WC_Payments_Action_Scheduler_Service( $this->mock_api_client, $order_service, $compatibility_service );
diff --git a/tests/unit/admin/test-class-wc-rest-payments-tos-controller.php b/tests/unit/admin/test-class-wc-rest-payments-tos-controller.php
index 08b6d5a0f4f..9fc5da21581 100644
--- a/tests/unit/admin/test-class-wc-rest-payments-tos-controller.php
+++ b/tests/unit/admin/test-class-wc-rest-payments-tos-controller.php
@@ -62,7 +62,7 @@ public function set_up() {
 		$mock_db_cache                     = $this->createMock( Database_Cache::class );
 		$mock_session_service              = $this->createMock( WC_Payments_Session_Service::class );
 		$order_service                     = new WC_Payments_Order_Service( $this->createMock( WC_Payments_API_Client::class ) );
-		$customer_service                  = new WC_Payments_Customer_Service( $mock_api_client, $mock_wcpay_account, $mock_db_cache, $mock_session_service, $order_service );
+		$customer_service                  = new WC_Payments_Customer_Service( $mock_api_client, $mock_wcpay_account, $mock_session_service, $order_service );
 		$token_service                     = new WC_Payments_Token_Service( $mock_api_client, $customer_service );
 		$mock_compatibility_service        = $this->createMock( Compatibility_Service::class );
 		$action_scheduler_service          = new WC_Payments_Action_Scheduler_Service( $mock_api_client, $order_service, $mock_compatibility_service );
diff --git a/tests/unit/core/service/test-class-wc-payments-customer-service-api.php b/tests/unit/core/service/test-class-wc-payments-customer-service-api.php
index 3e7e515187e..5b70a212fa7 100644
--- a/tests/unit/core/service/test-class-wc-payments-customer-service-api.php
+++ b/tests/unit/core/service/test-class-wc-payments-customer-service-api.php
@@ -66,8 +66,8 @@ public function set_up() {
 			'wc_payments_http',
 			[ $this, 'replace_http_client' ]
 		);
-		$this->customer_service     = new WC_Payments_Customer_Service( WC_Payments::create_api_client(), WC_Payments::get_account_service(), WC_Payments::get_database_cache(), WC_Payments::get_session_service(), WC_Payments::get_order_service() );
-		$this->customer_service_api = new WC_Payments_Customer_Service_API( $this->customer_service );
+		$this->customer_service     = new WC_Payments_Customer_Service( WC_Payments::create_api_client(), WC_Payments::get_account_service(), WC_Payments::get_session_service(), WC_Payments::get_order_service() );
+		$this->customer_service_api = new WC_Payments_Customer_Service_API( $this->customer_service, WC_Payments::get_token_service() );
 	}
 
 	/**
@@ -80,7 +80,7 @@ public function tear_down() {
 		);
 
 		// Clear the cache after each test.
-		$this->customer_service->delete_cached_payment_methods();
+		$this->customer_service_api->delete_cached_payment_methods();
 
 		parent::tear_down();
 	}
@@ -415,57 +415,6 @@ function ( $data ): bool {
 		$this->customer_service_api->update_payment_method_with_billing_details_from_order( 'pm_mock', $order );
 	}
 
-
-	/**
-	 * Test clearing cached payment methods.
-	 *
-	 * @return void
-	 */
-	public function test_clear_cached_payment_methods_for_user() {
-		// get payment methods for a customer so that it gets cached.
-		$mock_payment_methods = [
-			[ 'id' => 'pm_mock1' ],
-			[ 'id' => 'pm_mock2' ],
-		];
-		$this->mock_http_client
-			->expects( $this->exactly( 1 ) )
-			->method( 'remote_request' )
-			->with(
-				$this->callback(
-					function ( $data ): bool {
-						$this->assertSame( 'https://public-api.wordpress.com/wpcom/v2/sites/%s/wcpay/payment_methods?test_mode=0&customer=cus_123&type=card&limit=100', $data['url'] );
-						$this->assertSame( 'GET', $data['method'] );
-						return true;
-					}
-				)
-			)->willReturn(
-				[
-					'body'     => wp_json_encode( [ 'data' => $mock_payment_methods ] ),
-					'response' => [
-						'code'    => 200,
-						'message' => 'OK',
-					],
-				]
-			);
-		$response = $this->customer_service_api->get_payment_methods_for_customer( 'cus_123' );
-		$this->assertEquals( $mock_payment_methods, $response );
-
-		// check if we can retrieve from cache.
-		$db_cache       = WC_Payments::get_database_cache();
-		$cache_response = $db_cache->get( Database_Cache::PAYMENT_METHODS_KEY_PREFIX . 'cus_123_card' );
-		$this->assertEquals( $mock_payment_methods, $cache_response );
-
-		// set up the user for customer.
-		update_user_option( 1, self::CUSTOMER_LIVE_META_KEY, 'cus_123' );
-
-		// run the method.
-		$this->customer_service_api->clear_cached_payment_methods_for_user( 1 );
-
-		// check that cache is empty.
-		$cache_response = $db_cache->get( Database_Cache::PAYMENT_METHODS_KEY_PREFIX . 'cus_123_card' );
-		$this->assertEquals( null, $cache_response );
-	}
-
 	/**
 	 * Get mock customer data.
 	 *
diff --git a/tests/unit/test-class-database-cache.php b/tests/unit/test-class-database-cache.php
index 4b23eece139..70ceb8ce104 100644
--- a/tests/unit/test-class-database-cache.php
+++ b/tests/unit/test-class-database-cache.php
@@ -542,27 +542,6 @@ function () use ( $value ) {
 		$this->assert_cache_contains( $old );
 	}
 
-	public function test_delete_cache_by_prefix_will_not_delete_values_that_are_not_cache_keys() {
-		$cache_value = 'foo';
-		$this->write_mock_cache( $cache_value, time() + YEAR_IN_SECONDS );
-
-		$this->database_cache->delete_by_prefix( self::MOCK_KEY );
-
-		$this->assert_cache_contains( $cache_value );
-	}
-
-	public function test_delete_cache_by_prefix_will_delete_cached_data_that_starts_with_prefix() {
-		$payment_method_cache_key_one = Database_Cache::PAYMENT_METHODS_KEY_PREFIX . '1';
-		$payment_method_cache_key_two = Database_Cache::PAYMENT_METHODS_KEY_PREFIX . '2';
-		$this->database_cache->add( $payment_method_cache_key_one, 'foo' );
-		$this->database_cache->add( $payment_method_cache_key_two, 'bar' );
-
-		$this->database_cache->delete_by_prefix( Database_Cache::PAYMENT_METHODS_KEY_PREFIX );
-
-		$this->assertNull( $this->database_cache->get( $payment_method_cache_key_one ) );
-		$this->assertNull( $this->database_cache->get( $payment_method_cache_key_two ) );
-	}
-
 	private function write_mock_cache( $data, ?int $fetch_time = null, bool $errored = false ) {
 		update_option(
 			self::MOCK_KEY,
diff --git a/tests/unit/test-class-wc-payments-customer-service.php b/tests/unit/test-class-wc-payments-customer-service.php
index 54180bb22dc..1adc45122f8 100644
--- a/tests/unit/test-class-wc-payments-customer-service.php
+++ b/tests/unit/test-class-wc-payments-customer-service.php
@@ -39,13 +39,6 @@ class WC_Payments_Customer_Service_Test extends WCPAY_UnitTestCase {
 	 */
 	private $mock_account;
 
-	/**
-	 * Mock Database_Cache.
-	 *
-	 * @var Database_Cache|MockObject
-	 */
-	private $mock_db_cache;
-
 	/**
 	 * Mock WC_Payments_Session_Service.
 	 *
@@ -68,10 +61,9 @@ public function set_up() {
 
 		$this->mock_api_client      = $this->createMock( WC_Payments_API_Client::class );
 		$this->mock_account         = $this->createMock( WC_Payments_Account::class );
-		$this->mock_db_cache        = $this->createMock( Database_Cache::class );
 		$this->mock_session_service = $this->createMock( WC_Payments_Session_Service::class );
 
-		$this->customer_service = new WC_Payments_Customer_Service( $this->mock_api_client, $this->mock_account, $this->mock_db_cache, $this->mock_session_service, WC_Payments::get_order_service() );
+		$this->customer_service = new WC_Payments_Customer_Service( $this->mock_api_client, $this->mock_account, $this->mock_session_service, WC_Payments::get_order_service() );
 	}
 
 	/**
@@ -440,39 +432,6 @@ public function test_get_payment_methods_for_customer_fetches_from_api() {
 		$this->assertEquals( $mock_payment_methods, $response );
 	}
 
-	public function test_get_payment_methods_for_customer_fetches_from_database_cache() {
-		$mock_payment_methods = [
-			[ 'id' => 'pm_mock1' ],
-			[ 'id' => 'pm_mock2' ],
-		];
-		$customer_id          = 'cus_12345';
-		$payment_method_name  = 'card';
-		$cache_key            = Database_Cache::PAYMENT_METHODS_KEY_PREFIX . $customer_id . '_' . $payment_method_name;
-
-		$this->mock_api_client
-			->expects( $this->once() )
-			->method( 'get_payment_methods' )
-			->with( $customer_id, $payment_method_name )
-			->willReturn( [ 'data' => $mock_payment_methods ] );
-
-		$this->mock_db_cache
-			->expects( $this->exactly( 2 ) )
-			->method( 'get' )
-			->withConsecutive( [ $cache_key ], [ $cache_key ] )
-			->willReturnOnConsecutiveCalls( null, $mock_payment_methods );
-
-		$this->mock_db_cache
-			->expects( $this->once() )
-			->method( 'add' )
-			->with( $cache_key, $mock_payment_methods );
-
-		$response = $this->customer_service->get_payment_methods_for_customer( $customer_id );
-		$this->assertEquals( $mock_payment_methods, $response );
-
-		$response = $this->customer_service->get_payment_methods_for_customer( $customer_id );
-		$this->assertEquals( $mock_payment_methods, $response );
-	}
-
 	public function test_get_payment_methods_for_customer_no_customer() {
 		$this->mock_api_client
 			->expects( $this->never() )
@@ -735,23 +694,4 @@ public function test_get_customer_id_for_order() {
 
 		$this->assertEquals( $this->customer_service->get_customer_id_for_order( $order ), 'wcpay_cus_test12345' );
 	}
-
-	public function test_clear_cached_payment_methods_for_user() {
-		update_user_option( 1, self::CUSTOMER_LIVE_META_KEY, 'cus_test12345' );
-		$customer_id = $this->customer_service->get_customer_id_by_user_id( 1 );
-
-		$expected_card_cache_key = Database_Cache::PAYMENT_METHODS_KEY_PREFIX . $customer_id . '_card';
-		$expected_link_cache_key = Database_Cache::PAYMENT_METHODS_KEY_PREFIX . $customer_id . '_link';
-		$expected_sepa_cache_key = Database_Cache::PAYMENT_METHODS_KEY_PREFIX . $customer_id . '_sepa_debit';
-
-		$this->mock_db_cache
-			->expects( $this->exactly( 3 ) )
-			->method( 'delete' )
-			->withConsecutive(
-				[ $expected_card_cache_key ],
-				[ $expected_link_cache_key ],
-				[ $expected_sepa_cache_key ]
-			);
-		$this->customer_service->clear_cached_payment_methods_for_user( 1 );
-	}
 }
diff --git a/tests/unit/test-class-wc-payments-token-service.php b/tests/unit/test-class-wc-payments-token-service.php
index 3345964a002..09e53fe191c 100644
--- a/tests/unit/test-class-wc-payments-token-service.php
+++ b/tests/unit/test-class-wc-payments-token-service.php
@@ -44,12 +44,19 @@ class WC_Payments_Token_Service_Test extends WCPAY_UnitTestCase {
 	 */
 	protected $mock_cache;
 
+	/**
+	 * @var WC_Payment_Gateway_WCPay
+	 */
+	private $original_gateway;
+
 	/**
 	 * Pre-test setup
 	 */
 	public function set_up() {
 		parent::set_up();
 
+		$this->original_gateway = WC_Payments::get_gateway();
+
 		$this->user_id = get_current_user_id();
 		wp_set_current_user( 1 );
 
@@ -70,6 +77,7 @@ public function tear_down() {
 		wp_set_current_user( $this->user_id );
 		// Restore the cache service in the main class.
 		WC_Payments::set_database_cache( $this->_cache );
+		WC_Payments::set_gateway( $this->original_gateway );
 		parent::tear_down();
 	}
 
@@ -799,4 +807,280 @@ private function generate_link_token( $stripe_id, $wp_id = 0 ) {
 		$token->save();
 		return $token;
 	}
+
+	/**
+	 * Test clear_cached_payment_methods_for_user method.
+	 */
+	public function test_clear_cached_payment_methods_for_user() {
+		$user_id     = 1;
+		$cache_key   = '_wcpay_payment_methods';
+		$cached_data = [
+			'customer_id'                          => 'cus_12345',
+			'payment_methods_woocommerce_payments' => [
+				$this->generate_card_pm_response( 'pm_test1' ),
+				$this->generate_card_pm_response( 'pm_test2' ),
+			],
+		];
+
+		// Add cached data to user meta.
+		update_user_meta( $user_id, $cache_key, $cached_data );
+
+		// Clear cached payment methods for user.
+		$this->token_service->clear_cached_payment_methods_for_user( $user_id );
+
+		// Verify cached data is cleared.
+		$this->assertEmpty( get_user_meta( $user_id, $cache_key, true ) );
+	}
+
+	public function provider_clearing_with_network_saved_cards_enabled(): array {
+		return [
+			'clear_cached_payment_methods_for_user' => [
+				'user_id' => 1, // specific user.
+			],
+			'clear_all_cached_payment_methods'      => [
+				'user_id' => null, // all users.
+			],
+		];
+	}
+
+	/**
+	 * Test `clear_cached_payment_methods_for_user` and `clear_all_cached_payment_methods` with network saved cards enabled.
+	 *
+	 * @dataProvider provider_clearing_with_network_saved_cards_enabled
+	 * @param int|null $user_id The user ID.
+	 */
+	public function test_clearing_with_network_saved_cards_enabled( ?int $user_id = null ) {
+		$user_id     = 1;
+		$cached_data = [
+			'customer_id'                          => 'cus_12345',
+			'payment_methods_woocommerce_payments' => [
+				$this->generate_card_pm_response( 'pm_test1' ),
+			],
+		];
+
+		// Add cached data to user meta.
+		update_user_meta( $user_id, WC_Payments_Token_Service::CACHED_PAYMENT_METHODS_META_KEY, $cached_data );
+
+		// Mock network saved cards enabled using the filter.
+		add_filter( 'wcpay_force_network_saved_cards', '__return_true' );
+
+		if ( $user_id > 0 ) {
+			// Clear cached payment methods for user.
+			$this->token_service->clear_cached_payment_methods_for_user( $user_id );
+		} else {
+			// Clear all cached payment methods for all users.
+			$this->token_service->clear_all_cached_payment_methods();
+		}
+
+		// Verify cached data still exists (should not be cleared when network saved cards is enabled).
+		$this->assertEquals( $cached_data, get_user_meta( $user_id, WC_Payments_Token_Service::CACHED_PAYMENT_METHODS_META_KEY, true ) );
+
+		// Clean up the filter.
+		remove_filter( 'wcpay_force_network_saved_cards', '__return_true' );
+	}
+
+	/**
+	 * Test clear_all_cached_payment_methods method.
+	 */
+	public function test_clear_all_cached_payment_methods() {
+		$user_id_1     = 1;
+		$user_id_2     = 2;
+		$cached_data_1 = [
+			'customer_id'                          => 'cus_12345',
+			'payment_methods_woocommerce_payments' => [
+				$this->generate_card_pm_response( 'pm_test1' ),
+			],
+		];
+		$cached_data_2 = [
+			'customer_id'                          => 'cus_67890',
+			'payment_methods_woocommerce_payments' => [
+				$this->generate_card_pm_response( 'pm_test2' ),
+			],
+		];
+
+		// Add cached data to multiple users.
+		update_user_meta( $user_id_1, WC_Payments_Token_Service::CACHED_PAYMENT_METHODS_META_KEY, $cached_data_1 );
+		update_user_meta( $user_id_2, WC_Payments_Token_Service::CACHED_PAYMENT_METHODS_META_KEY, $cached_data_2 );
+
+		// Add some legacy cached data in options table.
+		update_option( 'wcpay_pm_legacy_1', 'legacy_data_1' );
+		update_option( 'wcpay_pm_legacy_2', 'legacy_data_2' );
+		update_option( 'wcpay_other_option', 'should_not_be_deleted' );
+
+		// Clear all cached payment methods.
+		$this->token_service->clear_all_cached_payment_methods();
+
+		// Clear WordPress object cache to ensure we get fresh data from database.
+		wp_cache_flush();
+
+		// Verify all cached data is cleared.
+		$this->assertEmpty( get_user_meta( $user_id_1, WC_Payments_Token_Service::CACHED_PAYMENT_METHODS_META_KEY, true ) );
+		$this->assertEmpty( get_user_meta( $user_id_2, WC_Payments_Token_Service::CACHED_PAYMENT_METHODS_META_KEY, true ) );
+		$this->assertFalse( get_option( 'wcpay_pm_legacy_1' ) );
+		$this->assertFalse( get_option( 'wcpay_pm_legacy_2' ) );
+		// Verify non-payment method options are not deleted.
+		$this->assertEquals( 'should_not_be_deleted', get_option( 'wcpay_other_option' ) );
+	}
+
+	/**
+	 * Test get_payment_methods_from_stripe method with cached data.
+	 */
+	public function test_get_payment_methods_from_stripe_with_cached_data() {
+		$user_id                = 1;
+		$customer_id            = 'cus_12345';
+		$gateway_id             = 'woocommerce_payments';
+		$cached_payment_methods = [
+			$this->generate_card_pm_response( 'pm_cached1' ),
+			$this->generate_card_pm_response( 'pm_cached2' ),
+		];
+		$cached_data            = [
+			'customer_id'                    => $customer_id,
+			'payment_methods_' . $gateway_id => $cached_payment_methods,
+		];
+
+		// Add cached data to user meta.
+		update_user_meta( $user_id, WC_Payments_Token_Service::CACHED_PAYMENT_METHODS_META_KEY, $cached_data );
+
+		// Verify customer service is not called (since we're using cached data).
+		$this->mock_customer_service
+			->expects( $this->never() )
+			->method( 'get_payment_methods_for_customer' );
+
+		$result = $this->call_sut_method( 'get_payment_methods_from_stripe', $user_id, $customer_id, $gateway_id );
+
+		// Verify cached data is returned.
+		$this->assertEquals( $cached_payment_methods, $result );
+	}
+
+	/**
+	 * Test get_payment_methods_from_stripe method with different customer ID (cache miss).
+	 */
+	public function test_get_payment_methods_from_stripe_with_different_customer_id() {
+		$user_id                = 1;
+		$customer_id            = 'cus_12345';
+		$new_customer_id        = 'cus_67890';
+		$gateway_id             = 'woocommerce_payments';
+		$cached_payment_methods = [
+			$this->generate_card_pm_response( 'pm_cached1' ),
+		];
+		$cached_data            = [
+			'customer_id'                    => $customer_id,
+			'payment_methods_' . $gateway_id => $cached_payment_methods,
+		];
+
+		// Add cached data with different customer ID.
+		update_user_meta( $user_id, WC_Payments_Token_Service::CACHED_PAYMENT_METHODS_META_KEY, $cached_data );
+
+		$new_payment_methods = [
+			$this->generate_card_pm_response( 'pm_new1' ),
+			$this->generate_card_pm_response( 'pm_new2' ),
+		];
+
+		// Mock gateway to return enabled payment methods.
+		$mock_gateway = $this->createMock( WC_Payment_Gateway_WCPay::class );
+		$mock_gateway->method( 'get_upe_enabled_payment_method_ids' )->willReturn( [ Payment_Method::CARD ] );
+		WC_Payments::set_gateway( $mock_gateway );
+
+		// Mock customer service to return new payment methods.
+		$this->mock_customer_service
+			->expects( $this->once() )
+			->method( 'get_payment_methods_for_customer' )
+			->with( $new_customer_id, Payment_Method::CARD )
+			->willReturn( $new_payment_methods );
+
+		$result = $this->call_sut_method( 'get_payment_methods_from_stripe', $user_id, $new_customer_id, $gateway_id );
+
+		// Verify new payment methods are returned.
+		$this->assertEquals( $new_payment_methods, $result );
+
+		// Verify cache is updated with new customer ID and payment methods.
+		$updated_cache = get_user_meta( $user_id, WC_Payments_Token_Service::CACHED_PAYMENT_METHODS_META_KEY, true );
+		$this->assertEquals( $new_customer_id, $updated_cache['customer_id'] );
+		$this->assertEquals( $new_payment_methods, $updated_cache[ 'payment_methods_' . $gateway_id ] );
+	}
+
+	/**
+	 * Test get_payment_methods_from_stripe method with no cached data.
+	 */
+	public function test_get_payment_methods_from_stripe_with_no_cached_data() {
+		$user_id         = 1;
+		$customer_id     = 'cus_12345';
+		$gateway_id      = 'woocommerce_payments';
+		$payment_methods = [
+			$this->generate_card_pm_response( 'pm_new1' ),
+			$this->generate_link_pm_response( 'pm_new2' ),
+		];
+
+		// Mock gateway to return enabled payment methods.
+		$mock_gateway = $this->createMock( WC_Payment_Gateway_WCPay::class );
+		$mock_gateway->method( 'get_upe_enabled_payment_method_ids' )->willReturn( [ Payment_Method::CARD, Payment_Method::LINK ] );
+		WC_Payments::set_gateway( $mock_gateway );
+
+		// Mock customer service to return payment methods.
+		$this->mock_customer_service
+			->expects( $this->exactly( 2 ) )
+			->method( 'get_payment_methods_for_customer' )
+			->withConsecutive(
+				[ $customer_id, Payment_Method::CARD ],
+				[ $customer_id, Payment_Method::LINK ]
+			)
+			->willReturnOnConsecutiveCalls(
+				[ $payment_methods[0] ],
+				[ $payment_methods[1] ]
+			);
+
+		$result = $this->call_sut_method( 'get_payment_methods_from_stripe', $user_id, $customer_id, $gateway_id );
+
+		// Verify payment methods are returned.
+		$this->assertEquals( $payment_methods, $result );
+
+		// Verify cache is created with payment methods.
+		$cached_data = get_user_meta( $user_id, WC_Payments_Token_Service::CACHED_PAYMENT_METHODS_META_KEY, true );
+		$this->assertEquals( $customer_id, $cached_data['customer_id'] );
+		$this->assertEquals( $payment_methods, $cached_data[ 'payment_methods_' . $gateway_id ] );
+	}
+
+	/**
+	 * Test get_payment_methods_from_stripe method with SEPA gateway.
+	 */
+	public function test_get_payment_methods_from_stripe_with_sepa_gateway() {
+		$user_id         = 1;
+		$customer_id     = 'cus_12345';
+		$gateway_id      = 'woocommerce_payments_sepa_debit';
+		$payment_methods = [
+			$this->generate_sepa_pm_response( 'pm_sepa1' ),
+		];
+
+		// Mock gateway to return enabled payment methods.
+		$mock_gateway = $this->createMock( WC_Payment_Gateway_WCPay::class );
+		$mock_gateway->method( 'get_upe_enabled_payment_method_ids' )->willReturn( [ Payment_Method::SEPA ] );
+		WC_Payments::set_gateway( $mock_gateway );
+
+		// Mock customer service to return SEPA payment methods.
+		$this->mock_customer_service
+			->expects( $this->once() )
+			->method( 'get_payment_methods_for_customer' )
+			->with( $customer_id, Payment_Method::SEPA )
+			->willReturn( $payment_methods );
+
+		$result = $this->call_sut_method( 'get_payment_methods_from_stripe', $user_id, $customer_id, $gateway_id );
+
+		// Verify SEPA payment methods are returned.
+		$this->assertEquals( $payment_methods, $result );
+
+		// Verify cache is created with correct gateway key.
+		$cached_data = get_user_meta( $user_id, WC_Payments_Token_Service::CACHED_PAYMENT_METHODS_META_KEY, true );
+		$this->assertEquals( $customer_id, $cached_data['customer_id'] );
+		$this->assertEquals( $payment_methods, $cached_data[ 'payment_methods_' . $gateway_id ] );
+	}
+
+	private function call_sut_method( $method_name, $user_id, $customer_id, $gateway_id ) {
+		// Use reflection to access private method.
+		$reflection = new ReflectionClass( $this->token_service );
+		$method     = $reflection->getMethod( $method_name );
+		$method->setAccessible( true );
+
+		// Call the private method.
+		return $method->invoke( $this->token_service, $user_id, $customer_id, $gateway_id );
+	}
 }
diff --git a/tests/unit/test-class-wc-payments-webhook-processing-service.php b/tests/unit/test-class-wc-payments-webhook-processing-service.php
index b2df16065c9..6290c7cd919 100644
--- a/tests/unit/test-class-wc-payments-webhook-processing-service.php
+++ b/tests/unit/test-class-wc-payments-webhook-processing-service.php
@@ -82,6 +82,13 @@ class WC_Payments_Webhook_Processing_Service_Test extends WCPAY_UnitTestCase {
 	 */
 	private $mock_onboarding_service;
 
+	/**
+	 * Mock token service.
+	 *
+	 * @var WC_Payments_Token_Service&MockObject
+	 */
+	private $mock_token_service;
+
 	/**
 	 * @var array
 	 */
@@ -139,6 +146,8 @@ public function set_up() {
 
 		$this->mock_onboarding_service = $this->createMock( WC_Payments_Onboarding_Service::class );
 
+		$this->mock_token_service = $this->createMock( WC_Payments_Token_Service::class );
+
 		$this->webhook_processing_service = new WC_Payments_Webhook_Processing_Service(
 			$this->mock_api_client,
 			$this->mock_db_wrapper,
@@ -147,9 +156,9 @@ public function set_up() {
 			$this->order_service,
 			$this->mock_receipt_service,
 			$this->mock_wcpay_gateway,
-			$this->mock_customer_service,
 			$this->mock_database_cache,
-			$this->mock_onboarding_service
+			$this->mock_onboarding_service,
+			$this->mock_token_service
 		);
 
 		// Build the event body data.
@@ -2161,9 +2170,9 @@ public function test_account_updated_webhook() {
 			->expects( $this->once() )
 			->method( 'refresh_account_data' );
 
-		$this->mock_customer_service
+		$this->mock_token_service
 			->expects( $this->once() )
-			->method( 'delete_cached_payment_methods' );
+			->method( 'clear_all_cached_payment_methods' );
 
 		// Create webhook processing service with the mocked account.
 		$webhook_processing_service = new WC_Payments_Webhook_Processing_Service(
@@ -2174,9 +2183,9 @@ public function test_account_updated_webhook() {
 			$this->order_service,
 			$this->mock_receipt_service,
 			$this->mock_wcpay_gateway,
-			$this->mock_customer_service,
 			$this->mock_database_cache,
-			$this->mock_onboarding_service
+			$this->mock_onboarding_service,
+			$this->mock_token_service
 		);
 
 		// Run the test.
@@ -2218,9 +2227,9 @@ public function test_account_deleted_webhook() {
 			$this->order_service,
 			$this->mock_receipt_service,
 			$this->mock_wcpay_gateway,
-			$this->mock_customer_service,
 			$this->mock_database_cache,
-			$this->mock_onboarding_service
+			$this->mock_onboarding_service,
+			$this->mock_token_service
 		);
 
 		// Run the test.