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Personally i would not have used paypal for items collected as you would have 0 seller protection.
Why not cash on collection then you would have no fee either.
Try marking the transaction as shipped in the PayPal transaction details, and that may open up the capability for your buyer to go into the transaction details on their side, and acknowledge receipt of the puppy. That may allow the payment to clear more quickly but if not you may have to wait the 21 days.