diff --git a/changelog/fix-test-mode-badge-credit-card b/changelog/fix-test-mode-badge-credit-card
new file mode 100644
index 00000000000..dfb2537989d
--- /dev/null
+++ b/changelog/fix-test-mode-badge-credit-card
@@ -0,0 +1,4 @@
+Significance: patch
+Type: fix
+
+Rendering Test Model badge only for Credit Card
diff --git a/client/checkout/blocks/payment-method-label.js b/client/checkout/blocks/payment-method-label.js
index ddb1506e5a9..e63009d691d 100644
--- a/client/checkout/blocks/payment-method-label.js
+++ b/client/checkout/blocks/payment-method-label.js
@@ -36,13 +36,15 @@ export default ( {
 		window.wcBlocksCheckoutData?.storeCountry ||
 		'US';
 
+	const isCreditCard = upeName === 'card';
+
 	return (
 		<>
 			<div className="payment-method-label">
 				<span className="payment-method-label__label">
 					{ upeConfig.title }
 				</span>
-				{ isTestMode && (
+				{ isCreditCard && isTestMode && (
 					<span className="test-mode badge">
 						{ __( 'Test Mode', 'woocommerce-payments' ) }
 					</span>