diff --git a/includes/admin/class-wc-admin-addons.php b/includes/admin/class-wc-admin-addons.php
index a01784abc1b..524f63d9d9e 100644
--- a/includes/admin/class-wc-admin-addons.php
+++ b/includes/admin/class-wc-admin-addons.php
@@ -704,7 +704,9 @@ class WC_Admin_Addons {
 			'repo-slug' => 'woocommerce-payments',
 		);
 
-		WC_Install::background_installer( $services_plugin_id, $wcpay_plugin );
+		WC_Install::background_installer( $wcpay_plugin_id, $wcpay_plugin );
+
+		do_action( 'wc_addons_woocommerce_payments_installed' );
 
 		wp_safe_redirect( remove_query_arg( array( 'install-addon', '_wpnonce' ) ) );
 		exit;
diff --git a/includes/tracks/events/class-wc-extensions-tracking.php b/includes/tracks/events/class-wc-extensions-tracking.php
index 70f582b4b06..34c5b4868e1 100644
--- a/includes/tracks/events/class-wc-extensions-tracking.php
+++ b/includes/tracks/events/class-wc-extensions-tracking.php
@@ -21,6 +21,7 @@ class WC_Extensions_Tracking {
 		add_action( 'woocommerce_helper_connected', array( $this, 'track_helper_connection_complete' ) );
 		add_action( 'woocommerce_helper_disconnected', array( $this, 'track_helper_disconnected' ) );
 		add_action( 'woocommerce_helper_subscriptions_refresh', array( $this, 'track_helper_subscriptions_refresh' ) );
+		add_action( 'wc_addons_woocommerce_payments_installed', array( $this, 'track_woocommerce_payments_install' ) );
 	}
 
 	/**
@@ -76,4 +77,14 @@ class WC_Extensions_Tracking {
 	public function track_helper_subscriptions_refresh() {
 		WC_Tracks::record_event( 'extensions_subscriptions_update' );
 	}
+
+	/**
+	 * Send a Tracks event when WooCommerce Payments is installed from the Extensions page.
+	 */
+	public function track_woocommerce_payments_install() {
+
+		$properties = array( 'context' => 'extensions' );
+
+		WC_Tracks::record_event( 'woocommerce_payments_install', $properties );
+	}
 }