By Apple Store you mean the hardware Apple Store? where you can buy iPhones and Macs?
Or do you mean the iTunes Store, where you buy songs, movies and apps?
They are 2 different stores, and have different requirements for payment methods.
If you need to use Paypal for the iTunes store, you need to setup the Payment method for your Apple ID as Paypal using iTunes on a computer. It cannot be done on an iOS device.
Change or remove your Apple ID payment information - Apple Support
The Paypal account requires a linked credit card to be able to be used as payment for the iTunes store.
Payment methods that you can use in the iTunes Store, App Store, and iBooks Store - Apple Support
If you are referring to the Hardware Apple Store, then Paypal can be chosen when checking out as a method of payment but not on the iOS Apple Store app, only through the website.
https://www.cnet.com/news/apple-store-now-lets-you-buy-items-via-paypal/