Allowing customers to pay invoices online using PayPal is pretty easy in QuickBooks Online (QBO).
By default, QuickBooks Payments account accepts Visa, MasterCard, Discover, and AMEX. To add PayPal as one of the payment methods, you'd need to set it up manually for merchant processing to work.
I'm glad to show you the steps:
Go to the Gear icon at the right top, then choose All LIsts.
Select Payment Method, then click New.
Enter a name for the payment method (PayPal), then mark the This is a Credit Card checkbox.
If the This is a Credit Card checkbox is unchecked, that payment method is not going to be processed with Merchant Services. This is often used when you need to record a credit card payment without submitting the card for electronic processing.
Once done, you need to turn on online payments. This will allow customers to pay invoices using the payment link.
Go back to the Gear icon at the right top, then select Account and Settings.
Select Sales from the left navigation tab.
Click Online delivery to expand this section, then choose Online invoice from the Additional email options for invoices drop-down list.
Let me shed some light on this situation. Several years back, Intuit merchant services beta tested accepting PayPal payments. That functionality was offered to a small number of customers, but hasn't been offered since. As a result, PayPal isn't an option for receiving payments on emails you send out to your customers. In fact, as of April 14, 2020, PayPal as a payment method will no longer be listed as an option in your QBO. I'm sure that's not the answer you were looking for today. You do still have the option of having your customers pay with credit card and ACH, however.
While using the Connect to PayPal app will allow you to download PayPal transactions to your QBO account, it does not add PayPal as a payment option to QuickBooks invoices. This link will give you information on how the Connect to PayPal app works with your QBO: