We have found that some customers simply can’t pay with their PayPal balance, even though they have plenty of money in their PayPal accounts. Unfortunately, this is an issue with PayPal and therefore we have no control over this.
Typically, PayPal doesn’t allow recurring payments unless you have a credit card or bank account linked to it. It doesn’t matter how much money you have in your PayPal balance.
Troubleshooting this with PayPal can be a little frustrating, as we’ve found that this applies to some people and not others. Sometimes this is due to your physical location/region or the PayPal account needing extra verification.