From PayPal Forward (via setteBIT, iMore):

Beginning today, just in time for the holidays, PayPal will be opening the doors (or the URL) to the PayPal Digital Gifts store.

What is PayPal Digital Gifts? It is a store that will give people the chance to purchase digital gift cards from a host of our partner merchants. We have one marquee merchant in the store today and will be adding more very soon!

Right now, the new store is limited to iTunes codes for the US iTunes Store. It’s nice that Apple is making it easier to buy iTunes credit online, but the regional restrictions are curious (an euphemism for awful): unless your PayPal account (not just the iTunes one) is a US one, you can’t send an iTunes code as a gift to someone else – not even if your account is configured with USD. PayPal’s Digital Gifts store would be very convenient to me and I hope that these restrictions will be removed soon.