Yes! PayPal offers two different ways to pay. They offer paying via a PayPal account as well as a credit card processing service. In both cases you should send us the $payment_gateway value $paypal in your $payment_method object.
If they are paying via a PayPal account set the $payment_type to $third_party_processor, and in the case of credit card processing set the $payment_type to $credit_card.
We have other supported subfields for PayPal including:
$paypal_payer_id$paypal_payer_email$paypal_payer_status$paypal_address_status$paypal_protection_eligibility$paypal_payment_status
We encourage you to send as many of these as possible. For more information on the Payment Method object, see our Events API documentation.