diff --git a/src/ROUTES.ts b/src/ROUTES.ts
index 35fa4bbf0837..1663f0295b9e 100644
--- a/src/ROUTES.ts
+++ b/src/ROUTES.ts
@@ -358,9 +358,9 @@ const ROUTES = {
             getUrlWithBackToParam(`create/${iouType}/distance/${transactionID}/${reportID}/`, backTo),
     },
     MONEY_REQUEST_STEP_MERCHANT: {
-        route: 'create/:iouType/merchante/:transactionID/:reportID/',
+        route: 'create/:iouType/merchant/:transactionID/:reportID/',
         getRoute: (iouType: ValueOf<typeof CONST.IOU.TYPE>, transactionID: string, reportID: string, backTo = '') =>
-            getUrlWithBackToParam(`create/${iouType}/merchante/${transactionID}/${reportID}/`, backTo),
+            getUrlWithBackToParam(`create/${iouType}/merchant/${transactionID}/${reportID}/`, backTo),
     },
     MONEY_REQUEST_STEP_PARTICIPANTS: {
         route: 'create/:iouType/participants/:transactionID/:reportID/',
diff --git a/src/pages/iou/request/step/IOURequestStepMerchant.js b/src/pages/iou/request/step/IOURequestStepMerchant.js
index 355bb76b89b0..091e7d8023c3 100644
--- a/src/pages/iou/request/step/IOURequestStepMerchant.js
+++ b/src/pages/iou/request/step/IOURequestStepMerchant.js
@@ -36,13 +36,15 @@ function IOURequestStepMerchant({
     route: {
         params: {transactionID, backTo},
     },
-    transaction: {merchant},
+    transaction: {merchant, participants},
 }) {
     const styles = useThemeStyles();
     const {translate} = useLocalize();
     const {inputCallbackRef} = useAutoFocusInput();
     const isEmptyMerchant = merchant === '' || merchant === CONST.TRANSACTION.PARTIAL_TRANSACTION_MERCHANT;
 
+    const isMerchantRequired = _.some(participants, (participant) => Boolean(participant.isPolicyExpenseChat));
+
     const navigateBack = () => {
         Navigation.goBack(backTo || ROUTES.HOME);
     };
@@ -51,15 +53,18 @@ function IOURequestStepMerchant({
      * @param {Object} value
      * @param {String} value.moneyRequestMerchant
      */
-    const validate = useCallback((value) => {
-        const errors = {};
+    const validate = useCallback(
+        (value) => {
+            const errors = {};
 
-        if (_.isEmpty(value.moneyRequestMerchant)) {
-            errors.moneyRequestMerchant = 'common.error.fieldRequired';
-        }
+            if (isMerchantRequired && _.isEmpty(value.moneyRequestMerchant)) {
+                errors.moneyRequestMerchant = 'common.error.fieldRequired';
+            }
 
-        return errors;
-    }, []);
+            return errors;
+        },
+        [isMerchantRequired],
+    );
 
     /**
      * @param {Object} value