As of this week, PayPal is being accepted when purchasing digital content on the Nintendo Switch eShop. From Nintendo’s official announcement:
When purchasing content, you’ll see a new PayPal payment option at checkout. The first time you select this option, you will be asked to link your PayPal account with your Nintendo Account via your PC or smart device. Once you complete this step, you’ll be able to use your PayPal account as a payment option for future purchases.
Users who link their PayPal and Nintendo Accounts will also be able to use PayPal when buying Wii U and 3DS games on Nintendo’s website (but not from the eShop interface directly on those devices).
Previously, the eShop allowed users to use a credit card to load $10, $20, $50, or $100 amounts into their account to use for content purchases, or they could add the exact funds needed if the purchase was for a single title. There were also Nintendo Prepaid eCash Cards that could be redeemed to load in money, which were the latest evolution of the eShop cards that replaced the Nintendo Points system from the Wii/DS era.
The entire announcement can be read on Nintendo’s site here: http://www.nintendo.com/whatsnew/detail/paypal-is-now-available-as-a-payment-option-for-digital-content