Per PayPal's website, the payment does not support retailer-specific gift cards. While you can buy retail gift cards via PayPal, you cannot add them to your PayPal account for payment.

How to add gift cards to PayPal If you have a pre-paid Visa, Mastercard, American Express, Discover, or similar gift card, you can add it to your PayPal account as a form of payment.

How to add a gift or loyalty card to Apple Wallet using an app You also may be able to add a loyalty card or gift card directly from the merchant or company's app.