App Store declining PayPal as a payment method

Hello benhohoho,

Welcome to Apple Support Communities. We understand the importance of getting this issue resolved so you can make purchases on iTunes & App Store, and we'd like to help.

To get started, let's make sure this method of payment is accepted in your country or region. Check this out:

Payment methods that you can use with your Apple ID

If PayPal is accepted in your country or region:

2.You might be asked to verify your account with the payment method provider.

As mentioned in the bottom of the link above.

We hope this information is useful. Kind regards.

I have a solution for the error when trying to re-add PayPal on your iPhone after switching AppleID.

Error message:

You can't use PayPal for pre-approved payments to iTunes and App Store. Please return to iTunes and App Store and choose another way to pay.

1. Add money to your Apple Account balance any way you can.
2. Start Apple Music subscription (trial).
3. Add a playlist to your library. Create your own or chose one online.
4. Go to the playlist and download it. A system pop-up will show that you need to change the device's AppleID. Press Change/Accept.
5. Add PayPal as Apple‘s site shows.