diff --git a/docs/UserGuide.md b/docs/UserGuide.md
index 33357353242..5bd0e6fb707 100644
--- a/docs/UserGuide.md
+++ b/docs/UserGuide.md
@@ -139,6 +139,15 @@ Format: `filter [g/GRADE] [s/SUBJECT]`
 * The order of keywords does not matter.
 * At least one of the optional fields must be provided.
 
+### Categorise student by payment :  `payment`
+
+Categorise students who has Paid or Not paid
+
+Format: `payment [pa/PAYMENT]`
+
+* The search is case-insensitive. e.g `paid` will match `PAID`
+* Only full words will be matched e.g. `Not paid` will not match `Not p`
+
 ### View Schedule : `view`
 
 Displays a calendar to view scheduled classes.