Updating the module from admin/modules/update results in BSOD with
PHP Fatal error: require_once() [function.require]: Failed opening required 'sites/all/modules/payment/payment/payment.classes.inc'.
This is likely to be caused by the fact that module in unpacked not to sites/all/modules/payment, but to /sites/all/modules/payment/payment.
Manual removing whole /sites/all/modules/payment directory, and and replacing it with downloaded module has solved the issue.
I would recommend put payment module to /sites/all/modules/payment rather than /sites/all/modules/payment/payment to avoid this issue.