diff --git a/.github/scripts/generate-qit-wc-matrix.sh b/.github/scripts/generate-qit-wc-matrix.sh
new file mode 100755
index 00000000000..bb14b10b939
--- /dev/null
+++ b/.github/scripts/generate-qit-wc-matrix.sh
@@ -0,0 +1,93 @@
+#!/bin/bash
+
+# Simplified script for QIT WooCommerce version matrix
+# QIT handles version resolution for stable, rc, beta, nightly keywords
+# We only need to fetch L-1 version for backward compatibility testing
+
+set -e
+
+# Function to get the latest WooCommerce version from WordPress.org API
+get_latest_wc_version() {
+    curl -s https://api.wordpress.org/plugins/info/1.0/woocommerce.json | jq -r '.version'
+}
+
+# Function to get the latest stable version for a specific major version
+get_latest_stable_for_major() {
+    local major_version=$1
+    curl -s https://api.wordpress.org/plugins/info/1.0/woocommerce.json | \
+    jq -r --arg major "$major_version" '.versions | with_entries(select(.key | startswith($major + ".") and (contains("-") | not))) | keys | sort_by( . | split(".") | map(tonumber) ) | last'
+}
+
+# Function to get the L-1 version (previous major version's latest stable)
+get_l1_version() {
+    local latest_version=$1
+    local major_version=$(echo "$latest_version" | cut -d. -f1)
+    local l1_major=$((major_version - 1))
+    get_latest_stable_for_major "$l1_major"
+}
+
+# Get the latest WooCommerce version
+echo "Fetching latest WooCommerce version..." >&2
+LATEST_WC_VERSION=$(get_latest_wc_version)
+echo "Latest WC version: $LATEST_WC_VERSION" >&2
+
+# Get the L-1 version (we need the actual version number for this)
+L1_VERSION=$(get_l1_version "$LATEST_WC_VERSION")
+echo "L-1 version: $L1_VERSION" >&2
+
+# Validate L-1 version
+if [[ -z "$L1_VERSION" || "$L1_VERSION" == "null" ]]; then
+    echo "Error: Could not extract L-1 version" >&2
+    exit 1
+fi
+
+if [[ ! "$L1_VERSION" =~ ^[0-9]+\.[0-9]+\.[0-9]+$ ]]; then
+    echo "Error: Invalid L-1 version: $L1_VERSION" >&2
+    exit 1
+fi
+
+# Check if RC and beta are available (for metadata only)
+# QIT will handle the actual version resolution
+RC_AVAILABLE="false"
+BETA_AVAILABLE="false"
+
+LATEST_RC=$(curl -s https://api.wordpress.org/plugins/info/1.0/woocommerce.json | \
+    jq -r '.versions | with_entries(select(.key|match("rc";"i"))) | keys | sort_by( . | split("-")[0] | split(".") | map(tonumber) ) | last')
+
+if [[ -n "$LATEST_RC" && "$LATEST_RC" != "null" ]]; then
+    RC_BASE="${LATEST_RC%%-*}"
+    HIGHEST=$(printf '%s\n%s\n' "$RC_BASE" "$LATEST_WC_VERSION" | sort -V | tail -n1)
+    if [[ "$HIGHEST" == "$RC_BASE" && "$RC_BASE" != "$LATEST_WC_VERSION" ]]; then
+        RC_AVAILABLE="true"
+        echo "RC available: $LATEST_RC" >&2
+    else
+        echo "RC not applicable (stable $LATEST_WC_VERSION already released)" >&2
+    fi
+else
+    echo "No RC version available" >&2
+fi
+
+LATEST_BETA=$(curl -s https://api.wordpress.org/plugins/info/1.0/woocommerce.json | \
+    jq -r --arg major "$(echo "$LATEST_WC_VERSION" | cut -d. -f1)" \
+    '.versions | with_entries(select(.key | startswith($major + ".") and contains("beta"))) | keys | sort_by( . | split("-")[0] | split(".") | map(tonumber) ) | last')
+
+if [[ -n "$LATEST_BETA" && "$LATEST_BETA" != "null" ]]; then
+    BETA_AVAILABLE="true"
+    echo "Beta available: $LATEST_BETA" >&2
+else
+    echo "No beta version available" >&2
+fi
+
+# Output JSON with L-1 version and availability flags
+# QIT workflows will use keywords (stable, rc, beta) and check availability flags
+RESULT=$(jq -n \
+    --arg l1_version "$L1_VERSION" \
+    --arg rc_available "$RC_AVAILABLE" \
+    --arg beta_available "$BETA_AVAILABLE" \
+    '{
+        l1_version: $l1_version,
+        rc_available: ($rc_available == "true"),
+        beta_available: ($beta_available == "true")
+    }')
+
+echo "$RESULT"
diff --git a/.github/workflows/qit-e2e-pull-request.yml b/.github/workflows/qit-e2e-pull-request.yml
new file mode 100644
index 00000000000..a0bdac8de48
--- /dev/null
+++ b/.github/workflows/qit-e2e-pull-request.yml
@@ -0,0 +1,359 @@
+name: QIT E2E Tests - Pull Request
+
+on:
+  pull_request:
+    paths:
+      - 'client/**'
+      - 'includes/**'
+      - 'src/**'
+      - 'tests/qit/e2e/**'
+      - 'tests/qit/qit.yml'
+      - '.github/workflows/qit-e2e-pull-request.yml' # Trigger on changes to this workflow for testing
+  workflow_dispatch:
+    inputs:
+      woocommerce_version:
+        description: 'WooCommerce version to test against'
+        required: false
+        default: 'stable'
+        type: choice
+        options:
+          - 'stable'
+          - '8.9.3'
+          - '7.7.0'
+          - 'rc'
+          - 'beta'
+      php_version:
+        description: 'PHP version'
+        required: false
+        default: '8.3'
+        type: choice
+        options:
+          - '8.3'
+          - '8.2'
+          - '8.1'
+          - '7.4'
+      wordpress_version:
+        description: 'WordPress version to test against'
+        required: false
+        default: 'stable'
+        type: choice
+        options:
+          - 'stable'
+          - 'nightly'
+          - 'rc'
+      test_tag:
+        description: 'Test tag to run (e.g., "merchant" or "shopper subscriptions")'
+        required: false
+        default: ''
+        type: string
+      run_ui_mode:
+        description: 'Run in UI mode'
+        required: false
+        default: false
+        type: boolean
+
+jobs:
+  generate-matrix:
+    name: "Generate the test matrix dynamically"
+    runs-on: ubuntu-latest
+    outputs:
+      matrix: ${{ steps.generate_matrix.outputs.matrix }}
+    steps:
+      - name: Checkout repository
+        uses: actions/checkout@v4
+
+      - name: "Generate matrix"
+        id: generate_matrix
+        run: |
+          # Use simplified QIT script - QIT handles version resolution for stable
+          SCRIPT_RESULT=$( .github/scripts/generate-qit-wc-matrix.sh )
+
+          # Extract L-1 version from JSON
+          L1_VERSION=$(echo "$SCRIPT_RESULT" | jq -r '.l1_version')
+
+          echo "Using L-1 version: $L1_VERSION" >&2
+
+          # Define common values to reduce repetition
+          PHP_STABLE="8.3"
+
+          # Initialize empty matrix array
+          MATRIX_ENTRIES=()
+
+          # PR matrix: Test both L-1 and stable versions for comprehensive coverage
+          # Strategy:
+          # - Single tag (e.g., "merchant") for base tests - uses --grep-invert "@(subscriptions|blocks)"
+          # - Multiple tags (e.g., "merchant subscriptions") for combined tests - uses AND logic
+
+          # Add L-1 version with PHP 8.3 (backward compatibility)
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"$L1_VERSION\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"merchant\",\"test_name\":\"merchant\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"$L1_VERSION\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper\",\"test_name\":\"shopper\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"$L1_VERSION\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"merchant subscriptions\",\"test_name\":\"subscriptions-merchant\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"$L1_VERSION\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper subscriptions\",\"test_name\":\"subscriptions-shopper\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"$L1_VERSION\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper blocks\",\"test_name\":\"blocks-shopper\"}")
+
+          # Add stable version with PHP 8.3 (current WooCommerce release compatibility)
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"merchant\",\"test_name\":\"merchant\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper\",\"test_name\":\"shopper\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"merchant subscriptions\",\"test_name\":\"subscriptions-merchant\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper subscriptions\",\"test_name\":\"subscriptions-shopper\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper blocks\",\"test_name\":\"blocks-shopper\"}")
+
+          # Convert array to JSON
+          MATRIX_INCLUDE=$(printf '%s\n' "${MATRIX_ENTRIES[@]}" | jq -s . -c)
+
+          # Output the full matrix
+          echo "matrix={\"include\":${MATRIX_INCLUDE}}" >> $GITHUB_OUTPUT
+
+          # Debug: log matrix to stderr so it appears in actions log
+          echo "Generated matrix with ${#MATRIX_ENTRIES[@]} combinations:" >&2
+          echo "$MATRIX_INCLUDE" | jq . >&2
+
+  build-plugin:
+    name: "Build plugin artifact"
+    runs-on: ubuntu-latest
+    steps:
+      - name: "Checkout repository"
+        uses: actions/checkout@v4
+
+      - name: "Set up repository"
+        uses: ./.github/actions/setup-repo
+
+      - name: "Build the plugin"
+        uses: ./.github/actions/build
+
+      - name: "Upload plugin artifact"
+        uses: actions/upload-artifact@v4
+        with:
+          name: woocommerce-payments-plugin
+          path: woocommerce-payments.zip
+          retention-days: 1
+
+  run-qit-tests:
+    name: "WC - ${{ matrix.woocommerce }} | PHP - ${{ matrix.php }} | ${{ matrix.test_name }}"
+    needs: [generate-matrix, build-plugin]
+    runs-on: ubuntu-latest
+    timeout-minutes: 60
+    strategy:
+      fail-fast: false
+      matrix: ${{ fromJson(needs.generate-matrix.outputs.matrix) }}
+
+    steps:
+      - name: Checkout repository
+        uses: actions/checkout@v4
+
+      - name: Set up repository
+        uses: ./.github/actions/setup-repo
+
+      - name: Download plugin artifact
+        uses: actions/download-artifact@v4
+        with:
+          name: woocommerce-payments-plugin
+
+      - name: "Install QIT CLI for running tests"
+        run: |
+          # Install dev dependencies to get QIT CLI
+          composer install --optimize-autoloader
+
+      - name: Authenticate QIT
+        if: ${{ github.event_name != 'pull_request' || github.event.pull_request.head.repo.full_name == github.repository }}
+        run: ./vendor/bin/qit partner:add --user='${{ secrets.QIT_CI_USER }}' --application_password='${{ secrets.QIT_CI_SECRET }}'
+
+      - name: Set up test options
+        id: test_options
+        run: |
+          OPTIONS=""
+
+          # UI mode is primarily for manual testing
+          if [[ "${{ inputs.run_ui_mode }}" == "true" ]]; then
+            OPTIONS="${OPTIONS} --ui"
+          fi
+
+          # Use input versions if provided, otherwise use matrix
+          WC_VERSION="${{ inputs.woocommerce_version || matrix.woocommerce }}"
+          PHP_VERSION="${{ inputs.php_version || matrix.php }}"
+          TEST_TAG="${{ inputs.test_tag || matrix.test_tag }}"
+          WP_VERSION="${{ inputs.wordpress_version || matrix.wordpress || 'stable' }}"
+
+          OPTIONS="${OPTIONS} --php_version=${PHP_VERSION} --woo=${WC_VERSION} --wp=${WP_VERSION}"
+
+          # Determine test selection using tags
+          # Single tag (e.g., "merchant") runs only base tests (excludes subscriptions/blocks)
+          # Multiple tags (e.g., "merchant subscriptions") use AND logic to run combined tests
+          if [[ -n "$TEST_TAG" ]]; then
+            # Remove @ prefix if present (QIT will add it)
+            CLEAN_TAG="${TEST_TAG#@}"
+            # For combined tags like "@shopper and @subscriptions", strip all @ symbols
+            CLEAN_TAG="${CLEAN_TAG//@/}"
+
+            # Check if this is a single tag (base test) or multiple tags (combined test)
+            WORD_COUNT=$(echo "$CLEAN_TAG" | wc -w | tr -d ' ')
+
+            if [[ "$WORD_COUNT" -eq 1 ]]; then
+              # Single tag: exclude subscriptions and blocks tests using --grep-invert with regex alternation
+              # Example: --grep @shopper --grep-invert "@(subscriptions|blocks)"
+              OPTIONS="${OPTIONS} --pw_test_tag=\"${CLEAN_TAG}\" --pw_options=\"--retries=0 --grep-invert '@(subscriptions|blocks)'\""
+              echo "Using test tag: ${CLEAN_TAG} (excluding @subscriptions and @blocks)"
+            else
+              # Multiple tags: use AND logic for combined tests
+              OPTIONS="${OPTIONS} --pw_test_tag=\"${CLEAN_TAG}\" --pw_options=\"--retries=0\""
+              echo "Using test tags: ${CLEAN_TAG}"
+            fi
+          else
+            # No specific test selection, just disable retries
+            OPTIONS="${OPTIONS} --pw_options=\"--retries=0\""
+          fi
+
+          echo "options=${OPTIONS}" >> $GITHUB_OUTPUT
+          echo "Will run with options: ${OPTIONS}"
+          echo "WordPress: ${WP_VERSION}"
+
+      - name: Mask sensitive values
+        if: ${{ github.event_name != 'pull_request' || github.event.pull_request.head.repo.full_name == github.repository }}
+        run: |
+          # Mask tokens in GitHub Actions logs to prevent accidental exposure
+          echo "::add-mask::${{ secrets.E2E_QIT_JP_SITE_ID }}"
+          echo "::add-mask::${{ secrets.E2E_QIT_JP_BLOG_TOKEN }}"
+          echo "::add-mask::${{ secrets.E2E_QIT_JP_USER_TOKEN }}"
+
+      - name: First Run QIT Tests
+        id: first_run_qit_tests
+        if: ${{ github.event_name != 'pull_request' || github.event.pull_request.head.repo.full_name == github.repository }}
+        # Use continue-on-error to allow parsing results even if tests fail
+        continue-on-error: true
+        run: |
+          # Always use the full tests/qit/e2e directory
+          # Test filtering is handled via --pw_test_tag and --grep-invert
+          TEST_DIR="tests/qit/e2e"
+
+          echo "Running tests from: $TEST_DIR"
+
+          # Run QIT tests - exit code 0 = all passed, non-zero = tests failed or QIT error
+          ./vendor/bin/qit run:e2e woocommerce-payments "$TEST_DIR" \
+            --config tests/qit/qit.yml \
+            --source woocommerce-payments.zip \
+            --env E2E_JP_SITE_ID="${{ secrets.E2E_QIT_JP_SITE_ID }}" \
+            --env E2E_JP_BLOG_TOKEN="${{ secrets.E2E_QIT_JP_BLOG_TOKEN }}" \
+            --env E2E_JP_USER_TOKEN="${{ secrets.E2E_QIT_JP_USER_TOKEN }}" \
+            --no_upload_report \
+            ${{ steps.test_options.outputs.options }}
+
+          QIT_EXIT_CODE=$?
+          echo "qit_exit_code=$QIT_EXIT_CODE" >> $GITHUB_OUTPUT
+
+          # Check if QIT actually ran tests by looking for results directory
+          QIT_RESULTS_DIR=$(find /tmp -maxdepth 1 -name "qit-results-*" -type d 2>/dev/null | sort -r | head -1)
+          if [[ -z "$QIT_RESULTS_DIR" ]]; then
+            echo "::error::QIT did not produce test results. This indicates an environment or setup failure."
+            exit 1
+          fi
+
+          exit $QIT_EXIT_CODE
+
+      - name: Parse Failed Specs
+        id: parse_failed_specs
+        if: ${{ (github.event_name != 'pull_request' || github.event.pull_request.head.repo.full_name == github.repository) && steps.first_run_qit_tests.outcome == 'failure' }}
+        run: |
+          # QIT outputs results to a temporary directory like /tmp/qit-results-XXXXX
+          # Find the most recent QIT results directory
+          QIT_RESULTS_DIR=$(find /tmp -maxdepth 1 -name "qit-results-*" -type d 2>/dev/null | sort -r | head -1)
+
+          if [[ -z "$QIT_RESULTS_DIR" ]]; then
+            echo "No QIT results directory found"
+            echo "failed_specs_count=0" >> $GITHUB_OUTPUT
+            exit 0
+          fi
+
+          echo "Found QIT results directory: $QIT_RESULTS_DIR"
+
+          # Look for CTRF report file
+          RESULTS_JSON=""
+          for filename in "ctrf-report.json" "results.json" "test-results.json"; do
+            FOUND=$(find "$QIT_RESULTS_DIR" -name "$filename" -type f 2>/dev/null | head -1)
+            if [[ -n "$FOUND" ]]; then
+              RESULTS_JSON="$FOUND"
+              break
+            fi
+          done
+
+          if [[ -z "$RESULTS_JSON" || ! -f "$RESULTS_JSON" ]]; then
+            echo "No results JSON found"
+            echo "failed_specs_count=0" >> $GITHUB_OUTPUT
+            exit 0
+          fi
+
+          echo "Parsing results from: $RESULTS_JSON"
+
+          # Extract failed spec files from CTRF format
+          # CTRF format: .results.tests[] with .status and .filePath fields
+          FAILED_SPECS_COUNT=$(jq -r '[.results.tests[] | select(.status == "failed") | .filePath] | unique | length' "$RESULTS_JSON" 2>/dev/null || echo "0")
+
+          echo "failed_specs_count=$FAILED_SPECS_COUNT" >> $GITHUB_OUTPUT
+          echo "results_json=$RESULTS_JSON" >> $GITHUB_OUTPUT
+
+          if [[ ${FAILED_SPECS_COUNT} -gt 0 ]]; then
+            echo "::notice::${FAILED_SPECS_COUNT} spec file(s) failed in the first run. Will re-run only the failed specs."
+          fi
+
+      - name: Re-try Failed Specs
+        if: ${{ (github.event_name != 'pull_request' || github.event.pull_request.head.repo.full_name == github.repository) && steps.parse_failed_specs.outputs.failed_specs_count > 0 }}
+        run: |
+          RESULTS_JSON="${{ steps.parse_failed_specs.outputs.results_json }}"
+
+          # Extract failed spec file paths from CTRF format
+          mapfile -t FAILED_SPECS < <(jq -r '[.results.tests[] | select(.status == "failed") | .filePath] | unique | .[]' "$RESULTS_JSON")
+
+          if [[ ${#FAILED_SPECS[@]} -eq 0 ]]; then
+            echo "::notice::No failed specs found. Skipping retry."
+            exit 0
+          fi
+
+          echo "Retrying ${#FAILED_SPECS[@]} failed spec(s):"
+          for spec in "${FAILED_SPECS[@]}"; do
+            echo " - $spec"
+          done
+
+          # Build grep pattern to match only failed spec files
+          # CTRF filePath format: /qit/tests/e2e/woocommerce-payments/local/specs/...
+          # Extract filenames and build regex pattern
+          SPEC_PATTERN=""
+          for spec in "${FAILED_SPECS[@]}"; do
+            # Extract just the filename without path (e.g., merchant-disputes-respond.spec.ts)
+            SPEC_NAME=$(basename "$spec")
+            if [[ -z "$SPEC_PATTERN" ]]; then
+              SPEC_PATTERN="$SPEC_NAME"
+            else
+              SPEC_PATTERN="${SPEC_PATTERN}|${SPEC_NAME}"
+            fi
+          done
+
+          # Always use full test directory for retry
+          TEST_DIR="tests/qit/e2e"
+
+          # For retry, we only need PHP, WC, and WP versions
+          WC_VERSION="${{ matrix.woocommerce }}"
+          PHP_VERSION="${{ matrix.php }}"
+          WP_VERSION="${{ matrix.wordpress || 'stable' }}"
+
+          echo "Retry grep pattern: ($SPEC_PATTERN)"
+
+          # Re-run QIT with grep pattern matching only failed specs
+          ./vendor/bin/qit run:e2e woocommerce-payments "$TEST_DIR" \
+            --config tests/qit/qit.yml \
+            --source woocommerce-payments.zip \
+            --env E2E_JP_SITE_ID="${{ secrets.E2E_QIT_JP_SITE_ID }}" \
+            --env E2E_JP_BLOG_TOKEN="${{ secrets.E2E_QIT_JP_BLOG_TOKEN }}" \
+            --env E2E_JP_USER_TOKEN="${{ secrets.E2E_QIT_JP_USER_TOKEN }}" \
+            --no_upload_report \
+            --php_version=${PHP_VERSION} \
+            --woo=${WC_VERSION} \
+            --wp=${WP_VERSION} \
+            --pw_options="--retries=0 --grep '(${SPEC_PATTERN})'"
+
+      - name: Upload Playwright test results
+        if: always()
+        uses: actions/upload-artifact@v4
+        with:
+          name: qit-results-wc-${{ matrix.woocommerce }}-php-${{ matrix.php }}-${{ matrix.test_name }}-${{ github.run_id }}
+          path: /tmp/qit-results-*/
+          retention-days: 7
+          if-no-files-found: warn
diff --git a/.github/workflows/qit-e2e.yml b/.github/workflows/qit-e2e.yml
index 5336f2ac45b..ec5580e9ede 100644
--- a/.github/workflows/qit-e2e.yml
+++ b/.github/workflows/qit-e2e.yml
@@ -1,22 +1,13 @@
-name: QIT E2E Tests
+name: QIT E2E Tests - Scheduled & Push
 
 on:
-  pull_request:
-    paths:
-      - 'client/**'
-      - 'includes/**'
-      - 'src/**'
-      - 'tests/qit/e2e/**'
-      - 'tests/qit/qit.yml'
-      - '.github/workflows/qit-e2e.yml'
   push:
     branches:
       - 'develop'
       - 'trunk'
-      - 'dev/qit-e2e-*'  # Allow testing on QIT E2E development branches
   schedule:
-    # Run daily at 2 AM UTC
-    - cron: '0 2 * * *'
+    # Run every 6 hours like legacy e2e-test.yml. TODO: Should this be nightly only?
+    - cron: '0 */6 * * *'
   workflow_dispatch:
     inputs:
       woocommerce_version:
@@ -40,6 +31,19 @@ on:
           - '8.2'
           - '8.1'
           - '7.4'
+      wordpress_version:
+        description: 'WordPress version to test against'
+        required: false
+        default: 'stable'
+        type: choice
+        options:
+          - 'stable'
+          - 'nightly'
+          - 'rc'
+      test_tag:
+        description: 'Playwright test tag to run (e.g., @shopper, @merchant, @critical)'
+        required: false
+        type: string
       run_ui_mode:
         description: 'Run tests in UI mode for debugging'
         required: false
@@ -54,24 +58,100 @@ concurrency:
   cancel-in-progress: true
 
 jobs:
-  qit-e2e-tests:
+  generate-matrix:
+    name: "Generate the test matrix dynamically"
     runs-on: ubuntu-latest
-    strategy:
-      fail-fast: false
-      matrix:
-        include:
-          # Pull requests: Test against stable and L-1 WooCommerce versions
-          - wc_version: "stable"
-            php_version: "8.3"
-            test_group: "basic"
-          - wc_version: "8.9.3"  # L-1 version
-            php_version: "8.3"
-            test_group: "basic"
-          # Full runs: Include business continuity version
-          - wc_version: "7.7.0"
-            php_version: "7.4"
-            test_group: "basic"
+    outputs:
+      matrix: ${{ steps.generate_matrix.outputs.matrix }}
+    steps:
+      - name: Checkout repository
+        uses: actions/checkout@v4
+
+      - name: "Generate matrix"
+        id: generate_matrix
+        run: |
+          # Use simplified QIT script - QIT handles version resolution for stable/rc/beta
+          SCRIPT_RESULT=$( .github/scripts/generate-qit-wc-matrix.sh )
+
+          # Extract L-1 version and availability flags from JSON
+          L1_VERSION=$(echo "$SCRIPT_RESULT" | jq -r '.l1_version')
+          RC_AVAILABLE=$(echo "$SCRIPT_RESULT" | jq -r '.rc_available')
+          BETA_AVAILABLE=$(echo "$SCRIPT_RESULT" | jq -r '.beta_available')
+
+          echo "Using L-1 version: $L1_VERSION" >&2
+          echo "RC available: $RC_AVAILABLE" >&2
+          echo "Beta available: $BETA_AVAILABLE" >&2
+
+          # Define common values to reduce repetition
+          PHP_LEGACY="7.4"
+          PHP_STABLE="8.3"
+          PHP_LATEST="8.4"
+
+          # Initialize empty matrix array
+          MATRIX_ENTRIES=()
+
+          # Scheduled/push matrix: Run comprehensive test suite across multiple versions
+          echo "Scheduled/push run detected - running full test suite" >&2
+
+          # WC 7.7.0 with PHP 7.4 only (legacy - business continuity)
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"7.7.0\",\"php\":\"$PHP_LEGACY\",\"test_tag\":\"merchant\",\"test_name\":\"merchant\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"7.7.0\",\"php\":\"$PHP_LEGACY\",\"test_tag\":\"shopper\",\"test_name\":\"shopper\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"7.7.0\",\"php\":\"$PHP_LEGACY\",\"test_tag\":\"merchant subscriptions\",\"test_name\":\"subscriptions-merchant\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"7.7.0\",\"php\":\"$PHP_LEGACY\",\"test_tag\":\"shopper subscriptions\",\"test_name\":\"subscriptions-shopper\"}")
+
+          # Add L-1 version with PHP 8.3 (QIT uses actual version number)
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"$L1_VERSION\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"merchant\",\"test_name\":\"merchant\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"$L1_VERSION\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper\",\"test_name\":\"shopper\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"$L1_VERSION\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"merchant subscriptions\",\"test_name\":\"subscriptions-merchant\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"$L1_VERSION\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper subscriptions\",\"test_name\":\"subscriptions-shopper\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"$L1_VERSION\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper blocks\",\"test_name\":\"blocks-shopper\"}")
 
+          # Add stable with PHP 8.3 (QIT keyword - resolves to latest stable)
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"merchant\",\"test_name\":\"merchant\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper\",\"test_name\":\"shopper\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"merchant subscriptions\",\"test_name\":\"subscriptions-merchant\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper subscriptions\",\"test_name\":\"subscriptions-shopper\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper blocks\",\"test_name\":\"blocks-shopper\"}")
+
+          # Add beta with PHP 8.3 (QIT keyword - only if available)
+          if [[ "$BETA_AVAILABLE" == "true" ]]; then
+            MATRIX_ENTRIES+=("{\"woocommerce\":\"beta\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"merchant\",\"test_name\":\"merchant\"}")
+            MATRIX_ENTRIES+=("{\"woocommerce\":\"beta\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper\",\"test_name\":\"shopper\"}")
+            MATRIX_ENTRIES+=("{\"woocommerce\":\"beta\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"merchant subscriptions\",\"test_name\":\"subscriptions-merchant\"}")
+            MATRIX_ENTRIES+=("{\"woocommerce\":\"beta\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper subscriptions\",\"test_name\":\"subscriptions-shopper\"}")
+            MATRIX_ENTRIES+=("{\"woocommerce\":\"beta\",\"php\":\"$PHP_STABLE\",\"test_tag\":\"shopper blocks\",\"test_name\":\"blocks-shopper\"}")
+            echo "Including beta tests (QIT will resolve to latest beta)" >&2
+          else
+            echo "Skipping beta tests - no beta available" >&2
+          fi
+
+          # Add rc with PHP 8.4 (QIT keyword - only if available)
+          if [[ "$RC_AVAILABLE" == "true" ]]; then
+            MATRIX_ENTRIES+=("{\"woocommerce\":\"rc\",\"php\":\"$PHP_LATEST\",\"test_tag\":\"merchant\",\"test_name\":\"merchant\"}")
+            MATRIX_ENTRIES+=("{\"woocommerce\":\"rc\",\"php\":\"$PHP_LATEST\",\"test_tag\":\"shopper\",\"test_name\":\"shopper\"}")
+            MATRIX_ENTRIES+=("{\"woocommerce\":\"rc\",\"php\":\"$PHP_LATEST\",\"test_tag\":\"merchant subscriptions\",\"test_name\":\"subscriptions-merchant\"}")
+            MATRIX_ENTRIES+=("{\"woocommerce\":\"rc\",\"php\":\"$PHP_LATEST\",\"test_tag\":\"shopper subscriptions\",\"test_name\":\"subscriptions-shopper\"}")
+            echo "Including RC tests (QIT will resolve to latest RC)" >&2
+          else
+            echo "Skipping RC tests - no RC available" >&2
+          fi
+
+          # Add WordPress nightly with WC latest and PHP 8.3 (match e2e-test.yml wp-nightly-tests)
+          # Test new WordPress features with latest stable WooCommerce
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"wordpress\":\"nightly\",\"test_tag\":\"merchant\",\"test_name\":\"merchant\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"wordpress\":\"nightly\",\"test_tag\":\"shopper\",\"test_name\":\"shopper\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"wordpress\":\"nightly\",\"test_tag\":\"merchant subscriptions\",\"test_name\":\"subscriptions-merchant\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"wordpress\":\"nightly\",\"test_tag\":\"shopper subscriptions\",\"test_name\":\"subscriptions-shopper\"}")
+          MATRIX_ENTRIES+=("{\"woocommerce\":\"stable\",\"php\":\"$PHP_STABLE\",\"wordpress\":\"nightly\",\"test_tag\":\"shopper blocks\",\"test_name\":\"blocks-shopper\"}")
+
+          # Convert array to JSON
+          MATRIX_INCLUDE=$(printf '%s\n' "${MATRIX_ENTRIES[@]}" | jq -s . -c)
+
+          echo "matrix={\"include\":$MATRIX_INCLUDE}" >> $GITHUB_OUTPUT
+
+  build-plugin:
+    name: "Build plugin artifact"
+    runs-on: ubuntu-latest
     steps:
       - name: "Checkout repository"
         uses: actions/checkout@v4
@@ -85,6 +165,32 @@ jobs:
         id: build_plugin
         uses: ./.github/actions/build
 
+      - name: "Upload plugin artifact"
+        uses: actions/upload-artifact@v4
+        with:
+          name: woocommerce-payments-plugin
+          path: woocommerce-payments.zip
+          retention-days: 1
+
+  qit-e2e-tests:
+    runs-on: ubuntu-latest
+    needs: [generate-matrix, build-plugin]
+    strategy:
+      fail-fast: false
+      matrix: ${{ fromJSON(needs.generate-matrix.outputs.matrix) }}
+    name: "${{ matrix.wordpress && format('WP - {0} | ', matrix.wordpress) || '' }}WC - ${{ matrix.woocommerce }} | PHP - ${{ matrix.php }} | ${{ matrix.test_name }}"
+
+    steps:
+      - name: "Checkout repository"
+        uses: actions/checkout@v4
+        with:
+          ref: ${{ github.ref }}
+
+      - name: "Download plugin artifact"
+        uses: actions/download-artifact@v4
+        with:
+          name: woocommerce-payments-plugin
+
       - name: "Install QIT CLI for running tests"
         run: |
           # Install dev dependencies to get QIT CLI
@@ -103,13 +209,43 @@ jobs:
           fi
 
           # Use input versions if provided, otherwise use matrix
-          WC_VERSION="${{ inputs.woocommerce_version || matrix.wc_version }}"
-          PHP_VERSION="${{ inputs.php_version || matrix.php_version }}"
+          WC_VERSION="${{ inputs.woocommerce_version || matrix.woocommerce }}"
+          PHP_VERSION="${{ inputs.php_version || matrix.php }}"
+          TEST_TAG="${{ inputs.test_tag || matrix.test_tag }}"
+          WP_VERSION="${{ inputs.wordpress_version || matrix.wordpress || 'stable' }}"
 
-          OPTIONS="${OPTIONS} --php_version=${PHP_VERSION} --woo=${WC_VERSION}"
+          OPTIONS="${OPTIONS} --php_version=${PHP_VERSION} --woo=${WC_VERSION} --wp=${WP_VERSION}"
+
+          # Determine test selection using tags
+          # Single tag (e.g., "merchant") needs to exclude subscriptions/blocks tests
+          # Multiple tags (e.g., "merchant subscriptions") use AND logic to run combined tests
+          if [[ -n "$TEST_TAG" ]]; then
+            # Remove @ prefix if present (QIT will add it)
+            CLEAN_TAG="${TEST_TAG#@}"
+            # For combined tags like "@shopper and @subscriptions", strip all @ symbols
+            CLEAN_TAG="${CLEAN_TAG//@/}"
+
+            # Check if this is a single tag (base test) or multiple tags (combined test)
+            WORD_COUNT=$(echo "$CLEAN_TAG" | wc -w | tr -d ' ')
+
+            if [[ "$WORD_COUNT" -eq 1 ]]; then
+              # Single tag: exclude subscriptions and blocks tests using --grep-invert with regex alternation
+              # Example: --grep @shopper --grep-invert "@(subscriptions|blocks)"
+              OPTIONS="${OPTIONS} --pw_test_tag=\"${CLEAN_TAG}\" --pw_options=\"--retries=0 --grep-invert '@(subscriptions|blocks)'\""
+              echo "Using test tag: ${CLEAN_TAG} (excluding @subscriptions and @blocks)"
+            else
+              # Multiple tags: use AND logic for combined tests
+              OPTIONS="${OPTIONS} --pw_test_tag=\"${CLEAN_TAG}\" --pw_options=\"--retries=0\""
+              echo "Using test tags: ${CLEAN_TAG}"
+            fi
+          else
+            # No specific test selection, just disable retries
+            OPTIONS="${OPTIONS} --pw_options=\"--retries=0\""
+          fi
 
           echo "options=${OPTIONS}" >> $GITHUB_OUTPUT
           echo "Will run with options: ${OPTIONS}"
+          echo "WordPress: ${WP_VERSION}"
 
       - name: Mask sensitive values
         if: ${{ github.event_name != 'pull_request' || github.event.pull_request.head.repo.full_name == github.repository }}
@@ -119,13 +255,145 @@ jobs:
           echo "::add-mask::${{ secrets.E2E_QIT_JP_BLOG_TOKEN }}"
           echo "::add-mask::${{ secrets.E2E_QIT_JP_USER_TOKEN }}"
 
-      - name: Run QIT Tests
+      - name: First Run QIT Tests
+        id: first_run_qit_tests
         if: ${{ github.event_name != 'pull_request' || github.event.pull_request.head.repo.full_name == github.repository }}
+        # Use continue-on-error to allow parsing results even if tests fail
+        continue-on-error: true
         run: |
-          cd tests/qit
-          ../../vendor/bin/qit run:e2e woocommerce-payments ./e2e \
-            --source ../../woocommerce-payments.zip \
+          # Always use the full tests/qit/e2e directory
+          # Test filtering is handled via --pw_test_tag and --grep-invert
+          TEST_DIR="tests/qit/e2e"
+
+          echo "Running tests from: $TEST_DIR"
+
+          # Run QIT tests - exit code 0 = all passed, non-zero = tests failed or QIT error
+          ./vendor/bin/qit run:e2e woocommerce-payments "$TEST_DIR" \
+            --config tests/qit/qit.yml \
+            --source woocommerce-payments.zip \
             --env E2E_JP_SITE_ID="${{ secrets.E2E_QIT_JP_SITE_ID }}" \
             --env E2E_JP_BLOG_TOKEN="${{ secrets.E2E_QIT_JP_BLOG_TOKEN }}" \
             --env E2E_JP_USER_TOKEN="${{ secrets.E2E_QIT_JP_USER_TOKEN }}" \
+            --no_upload_report \
             ${{ steps.test_options.outputs.options }}
+
+          QIT_EXIT_CODE=$?
+          echo "qit_exit_code=$QIT_EXIT_CODE" >> $GITHUB_OUTPUT
+
+          # Check if QIT actually ran tests by looking for results directory
+          QIT_RESULTS_DIR=$(find /tmp -maxdepth 1 -name "qit-results-*" -type d 2>/dev/null | sort -r | head -1)
+          if [[ -z "$QIT_RESULTS_DIR" ]]; then
+            echo "::error::QIT did not produce test results. This indicates an environment or setup failure."
+            exit 1
+          fi
+
+          exit $QIT_EXIT_CODE
+
+      - name: Parse Failed Specs
+        id: parse_failed_specs
+        if: ${{ (github.event_name != 'pull_request' || github.event.pull_request.head.repo.full_name == github.repository) && steps.first_run_qit_tests.outcome == 'failure' }}
+        run: |
+          # QIT outputs results to a temporary directory like /tmp/qit-results-XXXXX
+          # Find the most recent QIT results directory
+          QIT_RESULTS_DIR=$(find /tmp -maxdepth 1 -name "qit-results-*" -type d 2>/dev/null | sort -r | head -1)
+
+          if [[ -z "$QIT_RESULTS_DIR" ]]; then
+            echo "No QIT results directory found"
+            echo "failed_specs_count=0" >> $GITHUB_OUTPUT
+            exit 0
+          fi
+
+          echo "Found QIT results directory: $QIT_RESULTS_DIR"
+
+          # Look for CTRF report file
+          RESULTS_JSON=""
+          for filename in "ctrf-report.json" "results.json" "test-results.json"; do
+            FOUND=$(find "$QIT_RESULTS_DIR" -name "$filename" -type f 2>/dev/null | head -1)
+            if [[ -n "$FOUND" ]]; then
+              RESULTS_JSON="$FOUND"
+              break
+            fi
+          done
+
+          if [[ -z "$RESULTS_JSON" || ! -f "$RESULTS_JSON" ]]; then
+            echo "No results JSON found"
+            echo "failed_specs_count=0" >> $GITHUB_OUTPUT
+            exit 0
+          fi
+
+          echo "Parsing results from: $RESULTS_JSON"
+
+          # Extract failed spec files from CTRF format
+          # CTRF format: .results.tests[] with .status and .filePath fields
+          FAILED_SPECS_COUNT=$(jq -r '[.results.tests[] | select(.status == "failed") | .filePath] | unique | length' "$RESULTS_JSON" 2>/dev/null || echo "0")
+
+          echo "failed_specs_count=$FAILED_SPECS_COUNT" >> $GITHUB_OUTPUT
+          echo "results_json=$RESULTS_JSON" >> $GITHUB_OUTPUT
+
+          if [[ ${FAILED_SPECS_COUNT} -gt 0 ]]; then
+            echo "::notice::${FAILED_SPECS_COUNT} spec file(s) failed in the first run. Will re-run only the failed specs."
+          fi
+
+      - name: Re-try Failed Specs
+        if: ${{ (github.event_name != 'pull_request' || github.event.pull_request.head.repo.full_name == github.repository) && steps.parse_failed_specs.outputs.failed_specs_count > 0 }}
+        run: |
+          RESULTS_JSON="${{ steps.parse_failed_specs.outputs.results_json }}"
+
+          # Extract failed spec file paths from CTRF format
+          mapfile -t FAILED_SPECS < <(jq -r '[.results.tests[] | select(.status == "failed") | .filePath] | unique | .[]' "$RESULTS_JSON")
+
+          if [[ ${#FAILED_SPECS[@]} -eq 0 ]]; then
+            echo "::notice::No failed specs found. Skipping retry."
+            exit 0
+          fi
+
+          echo "Retrying ${#FAILED_SPECS[@]} failed spec(s):"
+          for spec in "${FAILED_SPECS[@]}"; do
+            echo " - $spec"
+          done
+
+          # Build grep pattern to match only failed spec files
+          # CTRF filePath format: /qit/tests/e2e/woocommerce-payments/local/specs/...
+          # Extract filenames and build regex pattern
+          SPEC_PATTERN=""
+          for spec in "${FAILED_SPECS[@]}"; do
+            # Extract just the filename without path (e.g., merchant-disputes-respond.spec.ts)
+            SPEC_NAME=$(basename "$spec")
+            if [[ -z "$SPEC_PATTERN" ]]; then
+              SPEC_PATTERN="$SPEC_NAME"
+            else
+              SPEC_PATTERN="${SPEC_PATTERN}|${SPEC_NAME}"
+            fi
+          done
+
+          # Always use full test directory for retry
+          TEST_DIR="tests/qit/e2e"
+
+          # For retry, we only need PHP, WC, and WP versions
+          WC_VERSION="${{ matrix.woocommerce }}"
+          PHP_VERSION="${{ matrix.php }}"
+          WP_VERSION="${{ matrix.wordpress || 'stable' }}"
+
+          echo "Retry grep pattern: ($SPEC_PATTERN)"
+
+          # Re-run QIT with grep pattern matching only failed specs
+          ./vendor/bin/qit run:e2e woocommerce-payments "$TEST_DIR" \
+            --config tests/qit/qit.yml \
+            --source woocommerce-payments.zip \
+            --env E2E_JP_SITE_ID="${{ secrets.E2E_QIT_JP_SITE_ID }}" \
+            --env E2E_JP_BLOG_TOKEN="${{ secrets.E2E_QIT_JP_BLOG_TOKEN }}" \
+            --env E2E_JP_USER_TOKEN="${{ secrets.E2E_QIT_JP_USER_TOKEN }}" \
+            --no_upload_report \
+            --php_version=${PHP_VERSION} \
+            --woo=${WC_VERSION} \
+            --wp=${WP_VERSION} \
+            --pw_options="--retries=0 --grep '(${SPEC_PATTERN})'"
+
+      - name: Upload Playwright test results
+        if: always()
+        uses: actions/upload-artifact@v4
+        with:
+          name: qit-results-wc-${{ matrix.woocommerce }}-php-${{ matrix.php }}-${{ matrix.test_name }}-${{ github.run_id }}
+          path: /tmp/qit-results-*/
+          retention-days: 7
+          if-no-files-found: warn
diff --git a/tests/qit/e2e/specs/basic.spec.ts b/tests/qit/e2e/specs/basic.spec.ts
index 708ea2beef8..594f053ba10 100644
--- a/tests/qit/e2e/specs/basic.spec.ts
+++ b/tests/qit/e2e/specs/basic.spec.ts
@@ -5,6 +5,7 @@ import { test, expect } from '../fixtures/auth';
 
 test.describe(
 	'A basic set of tests to ensure WP, wp-admin and my-account load',
+	{ tag: '@basic' },
 	() => {
 		test( 'Load the home page', async ( { page } ) => {
 			await page.goto( '/' );