diff --git a/src/main/resources/db/migration/V32__add_failure_index_payments.sql b/src/main/resources/db/migration/V32__add_failure_index_payments.sql
new file mode 100644
index 00000000..c685bcad
--- /dev/null
+++ b/src/main/resources/db/migration/V32__add_failure_index_payments.sql
@@ -0,0 +1,5 @@
+DROP INDEX IF EXISTS payment_data_failure_index;
+
+CREATE INDEX IF NOT EXISTS payment_data_payment_external_failure_by_created_date_idx
+    ON mst.payment_data USING BTREE (party_id, payment_external_failure, payment_external_failure_reason, payment_created_at)
+    WHERE payment_external_failure IS NOT NULL or payment_external_failure_reason IS NOT NULL;
\ No newline at end of file