Hey there Peter Darling,
Thanks for reaching out to Apple Support Communities. I understand you’re having issues verifying your PayPal account for use with the iTunes Store. I’ll be happy to help with this.
Take a look through the following article provides the information regarding the payment methods you can use. Be sure to review country- or region-specific under ‘Payment methods by country or region’ to verify you can use PayPal in your location:
Payment methods that you can use with your Apple ID
If that doesn’t work, sign into the Apple ID website and select Edit in the Payment & Shipping section. Make sure the info matches with your PayPal account there and save any changes you make. Try again once that’s complete.
If the issue continues, sign out of the iTunes Store on your device, restart, and sign back in. If you’re using an iOS device, go to Settings > Your Name > iTunes & App Stores, tap your Apple ID and sign out. If you’re on a Mac or PC, go to Account at the top of the screen or window and click Sign Out. Restart the device and sign back in. See if that helps.
Reach out to PayPal Support if you continue to have issues verifying your account after taking these steps. They should be able to help you with verifying your account for use with the iTunes Store as well.
Best wishes.