To use a balance as a payment method, you need to have a PayPal Balance account. 
You'll be able to get a PayPal Balance account when someone sends you money. Once you click Accept the Money, you’ll see two options: Transfer it to your bank and Keep it in PayPal. Click Keep it in PayPal and follow the steps. This includes viewing the disclosures, user agreement and confirming your identity with us.   

You can also get a PayPal Balance account by applying for or enrolling in any of the features or products available with each account. 

While you can’t use your balance to send money or make purchases if you don't have a Balance account, you can still receive payments and send money from your bank account, debit card, or credit card.