I just noticed that the PayPal for WooCommerce plugin is incompatible as well.
In this case, you could use the PayPal Standard functionality. While this option had been hidden since WooCommerce 5.5, you can reactivate this functionality with the following steps:
1. Install the Code Snippets plugin.
2. Add the following code to the Code Snippets plugin:
add_filter( 'woocommerce_should_load_paypal_standard', '__return_true' );
3. Go to the WooCommerce payment settings via WP Admin ? Settings ? Payments
.
4. Activate and set up the PayPal Standard
option.
Once you’ve done that, PayPal will appear as a payment option within the checkout block.
Kindly note that we usually do not offer support with code. I made an exception this time as our PayPal for WooCommerce plugin is incompatible with the WooCommerce Blocks and I can understand that you want to use the new checkout block, but also that it’s crucial for your business to use PayPal.