The Payment Succeeded email notification is triggered only when a payment is processed successfully. However, the Invoice Receipt email notification is triggered whenever an invoice is generated, irrespective of the payment status.
We would recommend you to keep the Invoice Receipt enabled so that your customers receive a copy of the invoice. They will also be made aware of a pending payment or failure, if that’s the case. If Auto Collection is turned off, the invoice will be in the Payment Due state and the customers will be notified of their outstanding charges in the Invoice Receipt. Additionally, you can also enable the email notification for the Payment Failed event to notify customers regarding a failed transaction.