diff --git a/apps/dashboard/src/components/settings/Account/Billing/ApplyCouponCard.stories.tsx b/apps/dashboard/src/components/settings/Account/Billing/ApplyCouponCard.stories.tsx
index 9bf79a07d61..4b5fdb9dd3d 100644
--- a/apps/dashboard/src/components/settings/Account/Billing/ApplyCouponCard.stories.tsx
+++ b/apps/dashboard/src/components/settings/Account/Billing/ApplyCouponCard.stories.tsx
@@ -59,6 +59,19 @@ function Story() {
           submit={statusStub(200)}
           onCouponApplied={undefined}
           prefillPromoCode="XYZ"
+          isPaymentSetup={true}
+          onAddPayment={() => {}}
+        />
+      </BadgeContainer>
+
+      <BadgeContainer label="No Valid Payment setup">
+        <ApplyCouponCardUI
+          submit={statusStub(200)}
+          onCouponApplied={undefined}
+          isPaymentSetup={false}
+          onAddPayment={() => {
+            console.log("show payment modal");
+          }}
         />
       </BadgeContainer>
 
@@ -66,6 +79,8 @@ function Story() {
         <ApplyCouponCardUI
           submit={statusStub(200)}
           onCouponApplied={undefined}
+          isPaymentSetup={true}
+          onAddPayment={() => {}}
         />
       </BadgeContainer>
 
@@ -73,6 +88,8 @@ function Story() {
         <ApplyCouponCardUI
           submit={statusStub(400)}
           onCouponApplied={undefined}
+          isPaymentSetup={true}
+          onAddPayment={() => {}}
         />
       </BadgeContainer>
 
@@ -80,6 +97,8 @@ function Story() {
         <ApplyCouponCardUI
           submit={statusStub(401)}
           onCouponApplied={undefined}
+          isPaymentSetup={true}
+          onAddPayment={() => {}}
         />
       </BadgeContainer>
 
@@ -87,6 +106,8 @@ function Story() {
         <ApplyCouponCardUI
           submit={statusStub(409)}
           onCouponApplied={undefined}
+          isPaymentSetup={true}
+          onAddPayment={() => {}}
         />
       </BadgeContainer>
 
@@ -94,6 +115,8 @@ function Story() {
         <ApplyCouponCardUI
           submit={statusStub(429)}
           onCouponApplied={undefined}
+          isPaymentSetup={true}
+          onAddPayment={() => {}}
         />
       </BadgeContainer>
 
@@ -101,6 +124,8 @@ function Story() {
         <ApplyCouponCardUI
           submit={statusStub(500)}
           onCouponApplied={undefined}
+          isPaymentSetup={true}
+          onAddPayment={() => {}}
         />
       </BadgeContainer>
       <Toaster richColors />
diff --git a/apps/dashboard/src/components/settings/Account/Billing/CouponCard.tsx b/apps/dashboard/src/components/settings/Account/Billing/CouponCard.tsx
index a1f718171b9..44fb4f82a74 100644
--- a/apps/dashboard/src/components/settings/Account/Billing/CouponCard.tsx
+++ b/apps/dashboard/src/components/settings/Account/Billing/CouponCard.tsx
@@ -37,6 +37,8 @@ export type ActiveCouponResponse = {
 function ApplyCouponCard(props: {
   teamId: string | undefined;
   onCouponApplied: (data: ActiveCouponResponse) => void;
+  isPaymentSetup: boolean;
+  onAddPayment: () => void;
 }) {
   const searchParams = useSearchParams();
   const couponCode = searchParams?.get("coupon");
@@ -45,6 +47,8 @@ function ApplyCouponCard(props: {
       onCouponApplied={props.onCouponApplied}
       prefillPromoCode={couponCode || undefined}
       scrollIntoView={!!couponCode}
+      isPaymentSetup={props.isPaymentSetup}
+      onAddPayment={props.onAddPayment}
       submit={async (promoCode: string) => {
         const res = await fetch("/api/server-proxy/api/v1/coupons/redeem", {
           method: "POST",
@@ -86,6 +90,8 @@ export function ApplyCouponCardUI(props: {
   onCouponApplied: ((data: ActiveCouponResponse) => void) | undefined;
   prefillPromoCode?: string;
   scrollIntoView?: boolean;
+  isPaymentSetup: boolean;
+  onAddPayment: () => void;
 }) {
   const containerRef = useRef<HTMLFormElement | null>(null);
   const form = useForm<z.infer<typeof couponFormSchema>>({
@@ -113,6 +119,11 @@ export function ApplyCouponCardUI(props: {
   });
 
   async function onSubmit(values: z.infer<typeof couponFormSchema>) {
+    if (!props.isPaymentSetup) {
+      props.onAddPayment();
+      return;
+    }
+
     try {
       const res = await applyCoupon.mutateAsync(values.promoCode);
       switch (res.status) {
@@ -161,7 +172,11 @@ export function ApplyCouponCardUI(props: {
             description:
               "Enter your coupon code to apply discounts or free trials on thirdweb products",
           }}
-          bottomText=""
+          bottomText={
+            props.isPaymentSetup
+              ? ""
+              : "A valid payment method must be added to apply a coupon"
+          }
           saveButton={{
             variant: "default",
             disabled: false,
@@ -238,7 +253,11 @@ export function CouponDetailsCardUI(props: {
   );
 }
 
-export function CouponSection(props: { teamId: string | undefined }) {
+export function CouponSection(props: {
+  teamId: string | undefined;
+  isPaymentSetup: boolean;
+  onAddPayment: () => void;
+}) {
   const loggedInUser = useLoggedInUser();
   const [optimisticCouponData, setOptimisticCouponData] = useState<
     | {
@@ -325,6 +344,8 @@ export function CouponSection(props: { teamId: string | undefined }) {
             setOptimisticCouponData(undefined);
           });
         }}
+        isPaymentSetup={props.isPaymentSetup}
+        onAddPayment={props.onAddPayment}
       />
     </Suspense>
   );
diff --git a/apps/dashboard/src/components/settings/Account/Billing/index.tsx b/apps/dashboard/src/components/settings/Account/Billing/index.tsx
index e9012561520..a0f0240d2fb 100644
--- a/apps/dashboard/src/components/settings/Account/Billing/index.tsx
+++ b/apps/dashboard/src/components/settings/Account/Billing/index.tsx
@@ -5,7 +5,7 @@ import {
   AccountStatus,
   useUpdateAccountPlan,
 } from "@3rdweb-sdk/react/hooks/useApi";
-import { Flex, Icon, useDisclosure } from "@chakra-ui/react";
+import { Flex, Icon } from "@chakra-ui/react";
 import { StepsCard } from "components/dashboard/StepsCard";
 import { OnboardingModal } from "components/onboarding/Modal";
 import { AccountForm } from "components/settings/Account/AccountForm";
@@ -32,11 +32,7 @@ export const Billing: React.FC<BillingProps> = ({ account, teamId }) => {
   const updatePlanMutation = useUpdateAccountPlan(
     account?.plan === AccountPlan.Free,
   );
-  const {
-    isOpen: isPaymentMethodOpen,
-    onOpen: onPaymentMethodOpen,
-    onClose: onPaymentMethodClose,
-  } = useDisclosure();
+  const [isPaymentModalOpen, setIsPaymentModalOpen] = useState(false);
   const [paymentMethodSaving, setPaymentMethodSaving] = useState(false);
   const [selectedPlan, setSelectedPlan] = useState<AccountPlan | undefined>();
   const trackEvent = useTrack();
@@ -114,7 +110,7 @@ export const Billing: React.FC<BillingProps> = ({ account, teamId }) => {
 
     if (!validPayment) {
       setSelectedPlan(plan);
-      onPaymentMethodOpen();
+      setIsPaymentModalOpen(true);
       return;
     }
     // downgrade from Growth to Free
@@ -127,7 +123,7 @@ export const Billing: React.FC<BillingProps> = ({ account, teamId }) => {
 
   const handlePaymentAdded = () => {
     setPaymentMethodSaving(true);
-    onPaymentMethodClose();
+    setIsPaymentModalOpen(false);
   };
 
   const handleDowngradeAlertClose = () => {
@@ -186,12 +182,12 @@ export const Billing: React.FC<BillingProps> = ({ account, teamId }) => {
             account={account}
             loading={paymentMethodSaving}
             loadingText="Verifying payment method"
-            onClick={onPaymentMethodOpen}
+            onClick={() => setIsPaymentModalOpen(true)}
           />
         ),
       },
     ];
-  }, [account, onPaymentMethodOpen, paymentMethodSaving, stepsCompleted]);
+  }, [account, paymentMethodSaving, stepsCompleted]);
 
   // FIXME: this entire flow needs to be re-worked
   // eslint-disable-next-line no-restricted-syntax
@@ -245,16 +241,16 @@ export const Billing: React.FC<BillingProps> = ({ account, teamId }) => {
 
   return (
     <Flex flexDir="column" gap={8}>
+      <OnboardingModal isOpen={isPaymentModalOpen}>
+        <LazyOnboardingBilling
+          onSave={handlePaymentAdded}
+          onCancel={() => setIsPaymentModalOpen(false)}
+        />
+      </OnboardingModal>
+
       {showSteps ? (
         <>
           <StepsCard title="Get started with billing" steps={steps} />
-
-          <OnboardingModal isOpen={isPaymentMethodOpen}>
-            <LazyOnboardingBilling
-              onSave={handlePaymentAdded}
-              onCancel={onPaymentMethodClose}
-            />
-          </OnboardingModal>
         </>
       ) : (
         <>
@@ -303,7 +299,13 @@ export const Billing: React.FC<BillingProps> = ({ account, teamId }) => {
         />
       )}
 
-      <CouponSection teamId={teamId} />
+      <CouponSection
+        teamId={teamId}
+        onAddPayment={() => {
+          setIsPaymentModalOpen(true);
+        }}
+        isPaymentSetup={validPayment}
+      />
     </Flex>
   );
 };