diff --git a/plugins/woocommerce-admin/changelogs/fix-8230-display-offline-payment-options-below b/plugins/woocommerce-admin/changelogs/fix-8230-display-offline-payment-options-below
new file mode 100644
index 00000000000..f75121f3530
--- /dev/null
+++ b/plugins/woocommerce-admin/changelogs/fix-8230-display-offline-payment-options-below
@@ -0,0 +1,4 @@
+Significance: patch
+Type: Fix
+
+Fix payments extensions displayed below the offline payments options. #8232
diff --git a/plugins/woocommerce-admin/client/tasks/fills/PaymentGatewaySuggestions/index.js b/plugins/woocommerce-admin/client/tasks/fills/PaymentGatewaySuggestions/index.js
index eba3b200982..55ba77a1d74 100644
--- a/plugins/woocommerce-admin/client/tasks/fills/PaymentGatewaySuggestions/index.js
+++ b/plugins/woocommerce-admin/client/tasks/fills/PaymentGatewaySuggestions/index.js
@@ -23,6 +23,9 @@ import { getPluginSlug } from '~/utils';
 import './plugins/Bacs';
 import './payment-gateway-suggestions.scss';
 
+const comparePaymentGatewaysByPriority = ( a, b ) =>
+	a.recommendation_priority - b.recommendation_priority;
+
 export const PaymentGatewaySuggestions = ( { onComplete, query } ) => {
 	const { updatePaymentGateway } = useDispatch( PAYMENT_GATEWAYS_STORE_NAME );
 	const {
@@ -66,6 +69,7 @@ export const PaymentGatewaySuggestions = ( { onComplete, query } ) => {
 			const enrichedSuggestion = {
 				installed: !! mappedPaymentGateways[ id ],
 				postInstallScripts: installedGateway.post_install_scripts,
+				hasPlugins: suggestion.plugins && suggestion.plugins.length,
 				enabled: installedGateway.enabled || false,
 				needsSetup: installedGateway.needs_setup,
 				settingsUrl: installedGateway.settings_url,
@@ -140,10 +144,7 @@ export const PaymentGatewaySuggestions = ( { onComplete, query } ) => {
 		() =>
 			Array.from( paymentGateways.values() )
 				.filter( ( gateway ) => gateway.recommendation_priority )
-				.sort(
-					( a, b ) =>
-						a.recommendation_priority - b.recommendation_priority
-				)
+				.sort( comparePaymentGatewaysByPriority )
 				.map( ( gateway ) => gateway.id )
 				.shift(),
 		[ paymentGateways ]
@@ -165,27 +166,40 @@ export const PaymentGatewaySuggestions = ( { onComplete, query } ) => {
 
 	const [ wcPayGateway, enabledGateways, additionalGateways ] = useMemo(
 		() =>
-			Array.from( paymentGateways.values() ).reduce(
-				( all, gateway ) => {
-					const [ wcPay, enabled, additional ] = all;
-
-					// WCPay is handled separately when not installed and configured
-					if (
-						gateway.plugins?.length === 1 &&
-						gateway.plugins[ 0 ] === 'woocommerce-payments' &&
-						! ( gateway.installed && ! gateway.needsSetup )
-					) {
-						wcPay.push( gateway );
-					} else if ( gateway.enabled ) {
-						enabled.push( gateway );
-					} else {
-						additional.push( gateway );
+			Array.from( paymentGateways.values() )
+				.sort( ( a, b ) => {
+					if ( a.hasPlugins === b.hasPlugins ) {
+						return comparePaymentGatewaysByPriority( a, b );
 					}
 
-					return all;
-				},
-				[ [], [], [] ]
-			),
+					// hasPlugins payment first
+					if ( a.hasPlugins ) {
+						return -1;
+					}
+
+					return 1;
+				} )
+				.reduce(
+					( all, gateway ) => {
+						const [ wcPay, enabled, additional ] = all;
+
+						// WCPay is handled separately when not installed and configured
+						if (
+							gateway.plugins?.length === 1 &&
+							gateway.plugins[ 0 ] === 'woocommerce-payments' &&
+							! ( gateway.installed && ! gateway.needsSetup )
+						) {
+							wcPay.push( gateway );
+						} else if ( gateway.enabled ) {
+							enabled.push( gateway );
+						} else {
+							additional.push( gateway );
+						}
+
+						return all;
+					},
+					[ [], [], [] ]
+				),
 		[ paymentGateways ]
 	);
 
diff --git a/plugins/woocommerce-admin/client/tasks/fills/PaymentGatewaySuggestions/test/index.js b/plugins/woocommerce-admin/client/tasks/fills/PaymentGatewaySuggestions/test/index.js
new file mode 100644
index 00000000000..c605411ddc8
--- /dev/null
+++ b/plugins/woocommerce-admin/client/tasks/fills/PaymentGatewaySuggestions/test/index.js
@@ -0,0 +1,178 @@
+/**
+ * External dependencies
+ */
+import { useSelect } from '@wordpress/data';
+import { render } from '@testing-library/react';
+/**
+ * Internal dependencies
+ */
+
+import { PaymentGatewaySuggestions } from '../index';
+
+jest.mock( '@wordpress/data', () => ( {
+	...jest.requireActual( '@wordpress/data' ),
+	useSelect: jest.fn(),
+	useDispatch: jest.fn().mockImplementation( () => ( {
+		updatePaymentGateway: jest.fn(),
+	} ) ),
+} ) );
+
+const paymentGatewaySuggestions = [
+	{
+		id: 'stripe',
+		title: 'Stripe',
+		content:
+			'Accept debit and credit cards in 135+ currencies, methods such as Alipay, and one-touch checkout with Apple Pay.',
+		image:
+			'http://localhost:8888/wp-content/plugins/woocommerce/assets/images/stripe.png',
+		plugins: [ 'woocommerce-gateway-stripe' ],
+		is_visible: true,
+		recommendation_priority: 3,
+	},
+	{
+		id: 'ppcp-gateway',
+		title: 'PayPal Payments',
+		content:
+			"Safe and secure payments using credit cards or your customer's PayPal account.",
+		image:
+			'http://localhost:8888/wp-content/plugins/woocommerce/assets/images/paypal.png',
+		plugins: [ 'woocommerce-paypal-payments' ],
+		is_visible: true,
+	},
+	{
+		id: 'cod',
+		title: 'Cash on delivery',
+		content: 'Take payments in cash upon delivery.',
+		image:
+			'http://localhost:8888/wp-content/plugins/woocommerce-admin/images/onboarding/cod.svg',
+		is_visible: true,
+	},
+	{
+		id: 'bacs',
+		title: 'Direct bank transfer',
+		content: 'Take payments via bank transfer.',
+		image:
+			'http://localhost:8888/wp-content/plugins/woocommerce-admin/images/onboarding/bacs.svg',
+		is_visible: true,
+	},
+	{
+		id: 'woocommerce_payments:non-us',
+		title: 'WooCommerce Payments',
+		content:
+			'Manage transactions without leaving your WordPress Dashboard. Only with WooCommerce Payments.',
+		image:
+			'http://localhost:8888/wp-content/plugins/woocommerce-admin/images/onboarding/wcpay.svg',
+		plugins: [ 'woocommerce-payments' ],
+		description:
+			'With WooCommerce Payments, you can securely accept major cards, Apple Pay, and payments in over 100 currencies. Track cash flow and manage recurring revenue directly from your store’s dashboard - with no setup costs or monthly fees.',
+		is_visible: true,
+		recommendation_priority: 1,
+	},
+	{
+		id: 'eway',
+		title: 'Eway',
+		content:
+			'The Eway extension for WooCommerce allows you to take credit card payments directly on your store without redirecting your customers to a third party site to make payment.',
+		image:
+			'http://localhost:8888/wp-content/plugins/woocommerce-admin/images/onboarding/eway.png',
+		plugins: [ 'woocommerce-gateway-eway' ],
+		is_visible: true,
+	},
+];
+
+describe( 'PaymentGatewaySuggestions', () => {
+	test( 'should render payment gateway lists', () => {
+		const onComplete = jest.fn();
+		const query = {};
+		useSelect.mockImplementation( () => ( {
+			isResolving: false,
+			getPaymentGateway: jest.fn(),
+			paymentGatewaySuggestions,
+			installedPaymentGateways: [],
+		} ) );
+
+		const { container } = render(
+			<PaymentGatewaySuggestions
+				onComplete={ onComplete }
+				query={ query }
+			/>
+		);
+
+		const paymentTitleElements = container.querySelectorAll(
+			'.woocommerce-task-payment__title'
+		);
+
+		const paymentTitles = Array.from( paymentTitleElements ).map(
+			( e ) => e.textContent
+		);
+
+		expect( paymentTitles ).toEqual( [
+			'Stripe',
+			'PayPal Payments',
+			'Eway',
+			'Cash on delivery',
+			'Direct bank transfer',
+		] );
+
+		expect(
+			container.getElementsByTagName( 'title' )[ 0 ].textContent
+		).toBe( 'WooCommerce Payments' );
+	} );
+
+	test( 'should the payment gateway offline options at the bottom', () => {
+		const onComplete = jest.fn();
+		const query = {};
+		useSelect.mockImplementation( () => ( {
+			isResolving: false,
+			getPaymentGateway: jest.fn(),
+			paymentGatewaySuggestions,
+			installedPaymentGateways: [],
+		} ) );
+
+		const { container } = render(
+			<PaymentGatewaySuggestions
+				onComplete={ onComplete }
+				query={ query }
+			/>
+		);
+
+		const paymentTitles = container.querySelectorAll(
+			'.woocommerce-task-payment__title'
+		);
+
+		expect( paymentTitles[ paymentTitles.length - 1 ].textContent ).toBe(
+			'Direct bank transfer'
+		);
+	} );
+
+	test( 'should have finish setup button for installed payment gateways', () => {
+		const onComplete = jest.fn();
+		const query = {};
+		useSelect.mockImplementation( () => ( {
+			isResolving: false,
+			getPaymentGateway: jest.fn(),
+			paymentGatewaySuggestions,
+			installedPaymentGateways: [
+				{
+					id: 'ppcp-gateway',
+					title: 'PayPal Payments',
+					content:
+						"Safe and secure payments using credit cards or your customer's PayPal account.",
+					image:
+						'http://localhost:8888/wp-content/plugins/woocommerce/assets/images/paypal.png',
+					plugins: [ 'woocommerce-paypal-payments' ],
+					is_visible: true,
+				},
+			],
+		} ) );
+
+		const { getByText } = render(
+			<PaymentGatewaySuggestions
+				onComplete={ onComplete }
+				query={ query }
+			/>
+		);
+
+		expect( getByText( 'Finish setup' ) ).toBeInTheDocument();
+	} );
+} );