diff --git a/libs/payments/paypal/src/lib/paypal.manager.spec.ts b/libs/payments/paypal/src/lib/paypal.manager.spec.ts
index 80b4b38887..648e155ff7 100644
--- a/libs/payments/paypal/src/lib/paypal.manager.spec.ts
+++ b/libs/payments/paypal/src/lib/paypal.manager.spec.ts
@@ -62,6 +62,29 @@ describe('PaypalManager', () => {
     }
   });
 
+  describe('cancelBillingAgreement', () => {
+    it('cancels a billing agreement', async () => {
+      const billingAgreementId = faker.string.sample();
+
+      paypalClient.baUpdate = jest
+        .fn()
+        .mockResolvedValueOnce(NVPBAUpdateTransactionResponseFactory());
+
+      const result = await paypalManager.cancelBillingAgreement(
+        billingAgreementId
+      );
+      expect(result).toBeUndefined();
+      expect(paypalClient.baUpdate).toBeCalledWith({
+        billingAgreementId,
+        cancel: true,
+      });
+    });
+
+    it('throws an error', async () => {
+      expect(paypalManager.cancelBillingAgreement).rejects.toThrowError();
+    });
+  });
+
   describe('getBillingAgreement', () => {
     it('returns agreement details (active status)', async () => {
       const billingAgreementId = faker.string.sample();
diff --git a/libs/payments/paypal/src/lib/paypal.manager.ts b/libs/payments/paypal/src/lib/paypal.manager.ts
index 3aa0c309fe..5db20b0ffa 100644
--- a/libs/payments/paypal/src/lib/paypal.manager.ts
+++ b/libs/payments/paypal/src/lib/paypal.manager.ts
@@ -23,6 +23,13 @@ export class PayPalManager {
     private paypalCustomerManager: PaypalCustomerManager
   ) {}
 
+  /**
+   * Cancels a billing agreement.
+   */
+  async cancelBillingAgreement(billingAgreementId: string): Promise<void> {
+    await this.client.baUpdate({ billingAgreementId, cancel: true });
+  }
+
   /**
    * Get Billing Agreement details by calling the update Billing Agreement API.
    * Parses the API call response for country code and billing agreement status