diff --git a/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Component/PONativeAlternativePaymentComponent.swift b/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Component/PONativeAlternativePaymentComponent.swift
index a838ab825..ea2e912ef 100644
--- a/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Component/PONativeAlternativePaymentComponent.swift
+++ b/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Component/PONativeAlternativePaymentComponent.swift
@@ -52,7 +52,7 @@ public final class PONativeAlternativePaymentComponent {
 
     /// Cancels the ongoing payment.
     public func cancel() {
-        interactor.cancel()
+        interactor.cancel(reason: .programmatic)
     }
 
     // MARK: - Internal
diff --git a/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Interactor/NativeAlternativePaymentCancellationReason.swift b/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Interactor/NativeAlternativePaymentCancellationReason.swift
new file mode 100644
index 000000000..d82d0c226
--- /dev/null
+++ b/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Interactor/NativeAlternativePaymentCancellationReason.swift
@@ -0,0 +1,25 @@
+//
+//  NativeAlternativePaymentCancellationReason.swift
+//  ProcessOut
+//
+//  Created by Andrii Vysotskyi on 10.08.2026.
+//
+
+import Foundation
+
+/// Describes the reason why the payment flow was cancelled.
+enum NativeAlternativePaymentCancellationReason {
+
+    /// The customer explicitly cancelled the payment flow (for example, by tapping a Cancel button).
+    case customer
+
+    /// The payment flow was cancelled because the associated objects were released as part of the
+    /// lifecycle.
+    ///
+    /// This commonly happens when the screen is dismissed, but it can also occur for other reasons
+    /// that result in the flow being deallocated.
+    case lifecycle
+
+    /// The payment flow was explicitly cancelled by the application code.
+    case programmatic
+}
diff --git a/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Interactor/NativeAlternativePaymentDefaultInteractor.swift b/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Interactor/NativeAlternativePaymentDefaultInteractor.swift
index 477dd94ba..50b2d1f12 100644
--- a/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Interactor/NativeAlternativePaymentDefaultInteractor.swift
+++ b/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Interactor/NativeAlternativePaymentDefaultInteractor.swift
@@ -151,7 +151,15 @@ final class NativeAlternativePaymentDefaultInteractor:
         state = .redirecting(newState)
     }
 
+    func didRequestCancelConfirmation() {
+        send(event: .didRequestCancelConfirmation)
+    }
+
     override func cancel() {
+        cancel(reason: .programmatic)
+    }
+
+    func cancel(reason: NativeAlternativePaymentCancellationReason) {
         switch state {
         case .starting(let currentState):
             currentState.task.cancel()
@@ -168,11 +176,12 @@ final class NativeAlternativePaymentDefaultInteractor:
         default:
             break
         }
-        setFailureState(error: POFailure(message: "Alternative payment has been canceled.", code: .Mobile.cancelled))
-    }
-
-    func didRequestCancelConfirmation() {
-        send(event: .didRequestCancelConfirmation)
+        setFailureState(
+            error: POFailure(
+                message: "Alternative payment has been canceled. Reason: '\(reason)'.",
+                code: .Mobile.cancelled
+            )
+        )
     }
 
     // MARK: - Private Properties
diff --git a/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Interactor/NativeAlternativePaymentInteractor.swift b/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Interactor/NativeAlternativePaymentInteractor.swift
index 23142538e..cef69200b 100644
--- a/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Interactor/NativeAlternativePaymentInteractor.swift
+++ b/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/Interactor/NativeAlternativePaymentInteractor.swift
@@ -33,4 +33,7 @@ protocol NativeAlternativePaymentInteractor: Interactor<NativeAlternativePayment
 
     /// Notifies interactor that user requested cancel confirmation.
     func didRequestCancelConfirmation()
+
+    /// Explicitly cancels payment with specified reason.
+    func cancel(reason: NativeAlternativePaymentCancellationReason)
 }
diff --git a/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/ViewModel/DefaultNativeAlternativePaymentViewModel.swift b/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/ViewModel/DefaultNativeAlternativePaymentViewModel.swift
index 94022ee56..59c51c3a3 100644
--- a/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/ViewModel/DefaultNativeAlternativePaymentViewModel.swift
+++ b/Sources/ProcessOutUI/Sources/Modules/NativeAlternativePayment/ViewModel/DefaultNativeAlternativePaymentViewModel.swift
@@ -20,7 +20,7 @@ final class DefaultNativeAlternativePaymentViewModel: ViewModel {
     }
 
     deinit {
-        Task { @MainActor [interactor] in interactor.cancel() }
+        Task { @MainActor [interactor] in interactor.cancel(reason: .lifecycle) }
     }
 
     // MARK: - NativeAlternativePaymentViewModel
@@ -413,7 +413,7 @@ final class DefaultNativeAlternativePaymentViewModel: ViewModel {
             accessibilityLabel: configuration.title ?? defaultTitle,
             confirmation: nil,
             action: { [weak self] in
-                self?.interactor.cancel()
+                self?.interactor.cancel(reason: .customer)
             }
         )
         return .button(viewModel)
@@ -833,7 +833,7 @@ final class DefaultNativeAlternativePaymentViewModel: ViewModel {
                 }
             },
             action: { [weak self] in
-                self?.interactor.cancel()
+                self?.interactor.cancel(reason: .customer)
             }
         )
         return action