diff --git a/modules/ppcp-button/resources/js/modules/Renderer/PaymentButton.js b/modules/ppcp-button/resources/js/modules/Renderer/PaymentButton.js
index 59e511a43..8b5dcd3e9 100644
--- a/modules/ppcp-button/resources/js/modules/Renderer/PaymentButton.js
+++ b/modules/ppcp-button/resources/js/modules/Renderer/PaymentButton.js
@@ -113,6 +113,13 @@ export default class PaymentButton {
 	 */
 	#isInitialized = false;
 
+	/**
+	 * Whether the one-time initialization of the payment gateway is complete.
+	 *
+	 * @type {boolean}
+	 */
+	#gatewayInitialized = false;
+
 	/**
 	 * The button's context.
 	 *
@@ -715,26 +722,34 @@ export default class PaymentButton {
 	}
 
 	/**
-	 * Makes the custom payment gateway visible by removing initial inline styles from the DOM.
+	 * Makes the payment gateway visible by removing initial inline styles from the DOM.
+	 * Also, removes the button-placeholder container from the smart button block.
 	 *
 	 * Only relevant on the checkout page, i.e., when `this.isSeparateGateway` is `true`
 	 */
 	showPaymentGateway() {
+		if ( this.#gatewayInitialized ) {
+			return;
+		}
+		this.#gatewayInitialized = true;
+
 		if ( ! this.isSeparateGateway || ! this.isEligible ) {
 			return;
 		}
 
-		const styleSelectors = `style[data-hide-gateway="${ this.methodId }"]`;
+		const styleSelector = `style[data-hide-gateway="${ this.methodId }"]`;
+		const wrapperSelector = `#${ this.wrappers.Default }`;
 
-		const styles = document.querySelectorAll( styleSelectors );
+		document
+			.querySelectorAll( styleSelector )
+			.forEach( ( el ) => el.remove() );
+
+		document
+			.querySelectorAll( wrapperSelector )
+			.forEach( ( el ) => el.remove() );
 
-		if ( ! styles.length ) {
-			return;
-		}
 		this.log( 'Show gateway' );
 
-		styles.forEach( ( el ) => el.remove() );
-
 		// This code runs only once, during button initialization, and fixes the initial visibility.
 		this.isVisible = this.isCurrentGateway;
 	}