Drupal Commerce Paypal WPS
PayPal WPS submodule of Commerce PayPal provides only one payment option, which redirects the user to PayPal for payment. Credit card icons are there to let users know that at PayPal's end they will be able to make the payment via PayPal balance or using listed credit cards.

You see only one radio button for PayPal WPS payment method because it is expected behavior. If you wish to allow your users to pay via credit card without leaving your website - enable PayPal WPP submodule.