diff --git a/.github/workflows/cypress-tests-runner.yml b/.github/workflows/cypress-tests-runner.yml
index 79d7c85a0e72..5e25281911d8 100644
--- a/.github/workflows/cypress-tests-runner.yml
+++ b/.github/workflows/cypress-tests-runner.yml
@@ -430,7 +430,10 @@ jobs:
           CYPRESS_BASEURL: "http://localhost:8080"
           ROUTER__SERVER__WORKERS: 4
         shell: bash -leuo pipefail {0}
-        run: kill "${{ env.PID }}"
+        run: |
+          scripts/execute_cypress_v2.sh
+
+          kill "${{ env.PID }}"
 
       - name: Upload Cypress test results
         if: env.RUN_TESTS == 'true' && failure()
@@ -442,12 +445,12 @@ jobs:
           retention-days: 1
 
       - name: Process coverage report
-        if: env.RUN_TESTS == 'true' && success()
+        if: env.RUN_TESTS == 'true'
         run: grcov . -s . -t lcov --output-path ${{ env.CODECOV_FILE }} --branch --binary-path ./target/debug
 
       - name: Upload coverage reports to Codecov
         uses: codecov/codecov-action@v5
-        if: env.RUN_TESTS == 'true' && success()
+        if: env.RUN_TESTS == 'true'
         with:
           token: ${{ secrets.CODECOV_TOKEN }}
           files: ${{ env.CODECOV_FILE }}
diff --git a/scripts/execute_cypress_v2.sh b/scripts/execute_cypress_v2.sh
new file mode 100755
index 000000000000..e4b4cdae32cc
--- /dev/null
+++ b/scripts/execute_cypress_v2.sh
@@ -0,0 +1,188 @@
+#! /usr/bin/env bash
+
+set -euo pipefail
+
+# Initialize tmp_file globally
+tmp_file=""
+
+# Define arrays for services, etc.
+# Read service arrays from environment variables
+read -r -a payments <<< "${PAYMENTS_CONNECTORS[@]:-}"
+read -r -a payouts <<< "${PAYOUTS_CONNECTORS[@]:-}"
+read -r -a payment_method_list <<< "${PAYMENT_METHOD_LIST[@]:-}"
+read -r -a routing <<< "${ROUTING[@]:-}"
+
+# Define arrays
+connector_map=()
+failed_connectors=()
+
+# Define an associative array to map environment variables to service names
+declare -A services=(
+  ["PAYMENTS_CONNECTORS"]="payments"
+  ["PAYOUTS_CONNECTORS"]="payouts"
+  ["PAYMENT_METHOD_LIST"]="payment_method_list"
+  ["ROUTING"]="routing"
+)
+
+# Function to print messages in color
+function print_color() {
+  # Input params
+  local color="$1"
+  local message="$2"
+
+  # Define colors
+  local reset='\033[0m'
+  local red='\033[0;31m'
+  local green='\033[0;32m'
+  local yellow='\033[0;33m'
+
+  # Use indirect reference to get the color value
+  echo -e "${!color}${message}${reset}"
+}
+export -f print_color
+
+# Function to check if a command exists
+function command_exists() {
+  command -v "$1" > /dev/null 2>&1
+}
+
+# Function to read service arrays from environment variables
+function read_service_arrays() {
+  # Loop through the associative array and check if each service is exported
+  for var in "${!services[@]}"; do
+    if [[ -n "${!var+x}" ]]; then
+      connector_map+=("${services[$var]}")
+    else
+      print_color "yellow" "Environment variable ${var} is not set. Skipping..."
+    fi
+  done
+}
+
+# Function to execute Cypress tests
+function execute_test() {
+  if [[ $# -lt 3 ]]; then
+    print_color "red" "ERROR: Insufficient arguments provided to execute_test."
+    exit 1
+  fi
+
+  local connector="$1"
+  local service="$2"
+  local tmp_file="$3"
+
+  print_color "yellow" "Executing tests for ${service} with connector ${connector}..."
+
+  export REPORT_NAME="${service}_${connector}_report"
+
+  if ! CYPRESS_CONNECTOR="$connector" npm run "cypress:$service"; then
+    echo "${service}-${connector}" >> "${tmp_file}"
+  fi
+}
+export -f execute_test
+
+# Function to run tests
+function run_tests() {
+  local jobs="${1:-1}"
+  tmp_file=$(mktemp)
+
+  # Ensure temporary file is removed on script exit
+  trap 'cleanup' EXIT
+
+  for service in "${connector_map[@]}"; do
+    declare -n connectors="$service"
+
+    if [[ ${#connectors[@]} -eq 0 ]]; then
+      # Service-level test (e.g., payment-method-list or routing)
+      [[ $service == "payment_method_list" ]] && service="payment-method-list"
+
+      echo "Running ${service} tests without connectors..."
+      export REPORT_NAME="${service}_report"
+
+      if ! npm run "cypress:${service}"; then
+        echo "${service}" >> "${tmp_file}"
+      fi
+    else
+      # Connector-specific tests (e.g., payments or payouts)
+      print_color "yellow" "Running tests for service: '${service}' with connectors: [${connectors[*]}] in batches of ${jobs}..."
+
+      # Execute tests in parallel
+      printf '%s\n' "${connectors[@]}" | parallel --jobs "${jobs}" execute_test {} "${service}" "${tmp_file}"
+    fi
+  done
+
+  # Collect failed connectors
+  if [[ -s "${tmp_file}" ]]; then
+    failed_connectors=($(< "${tmp_file}"))
+    print_color "red" "One or more connectors failed to run:"
+    printf '%s\n' "${failed_connectors[@]}"
+    exit 1
+  else
+    print_color "green" "Cypress tests execution successful!"
+  fi
+}
+
+# Function to check and install dependencies
+function check_dependencies() {
+  # parallel and npm are mandatory dependencies. exit the script if not found.
+  local dependencies=("parallel" "npm")
+
+  for cmd in "${dependencies[@]}"; do
+    if ! command_exists "$cmd"; then
+      print_color "red" "ERROR: ${cmd^} is not installed!"
+      exit 1
+    else
+      print_color "green" "${cmd^} is installed already!"
+
+      if [[ ${cmd} == "npm" ]]; then
+        npm ci || {
+          print_color "red" "Command \`npm ci\` failed!"
+          exit 1
+        }
+      fi
+    fi
+  done
+}
+
+# Cleanup function to handle exit
+function cleanup() {
+  print_color "yellow" "Cleaning up..."
+  if [[ -d "cypress-tests" ]]; then
+    cd -
+  fi
+
+  if [[ -n "${tmp_file}" && -f "${tmp_file}" ]]; then
+    rm -f "${tmp_file}"
+  fi
+}
+
+# Main function
+function main() {
+  local command="${1:-}"
+  local jobs="${2:-5}"
+
+  # Ensure script runs from 'cypress-tests' directory
+  if [[ "$(basename "$PWD")" != "cypress-tests-v2" ]]; then
+    print_color "yellow" "Changing directory to 'cypress-tests'..."
+    cd cypress-tests-v2 || {
+      print_color "red" "ERROR: Directory 'cypress-tests' not found!"
+      exit 1
+    }
+  fi
+
+  check_dependencies
+  read_service_arrays
+
+  case "$command" in
+    --parallel | -p)
+      print_color "yellow" "WARNING: Running Cypress tests in parallel is more resource-intensive!"
+      # At present, parallel execution is restricted to not run out of memory
+      # But can be scaled up by passing the value as an argument
+      run_tests "$jobs"
+      ;;
+    *)
+      run_tests 1
+      ;;
+  esac
+}
+
+# Execute the main function with passed arguments
+main "$@"