diff --git a/packages/lib/src/components/PayPal/types.ts b/packages/lib/src/components/PayPal/types.ts
index edfc9f86ae..c943a7efb5 100644
--- a/packages/lib/src/components/PayPal/types.ts
+++ b/packages/lib/src/components/PayPal/types.ts
@@ -181,6 +181,7 @@ export interface PaypalSettings {
     vault?: boolean;
     'client-id': string;
     'integration-date': string;
+    'enable-funding': string;
     components: string;
 }
 
diff --git a/packages/lib/src/components/PayPal/utils.ts b/packages/lib/src/components/PayPal/utils.ts
index 2d8972cbfc..9b8d6844bd 100644
--- a/packages/lib/src/components/PayPal/utils.ts
+++ b/packages/lib/src/components/PayPal/utils.ts
@@ -56,6 +56,7 @@ const getPaypalSettings = ({
         vault,
         'client-id': clientId,
         'integration-date': INTEGRATION_DATE,
+        'enable-funding': 'paylater',
         components: 'buttons,funding-eligibility'
     };
 };