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If you have upgraded your Sage Pay account to version 3.00 you may have noticed that PayPal is no longer working on your account.
When upgrading to version 3.00 you will need to remove PayPal from your Sage Pay account and then re-add this to your account.
PayPal will then be active on your account and functioning without any further problems.
The reason you need to re-add PayPal to your account is only because you have upgraded your Sage Pay account.
When you upgrade you basically need to re-set your PayPal account within Sage Pay to enable PayPal again.