Thank you for contacting the PayPal Community Forum and welcome as a new member!
Yes, PayPal digital gifts is real and part of PayPal! More information on the PayPal digital gifts can be found here - https://www.paypal.com/us/gifts/
I tried to send an iTunes gift card as a graduation gift... I've spent over 4 hrs trying to contact paypal customer support who continue to tell me to contact apple. My sister can't access the email from PayPal... Apple was frustrated and said I should demand my money back. PayPal is useless from customer service end of this issue. I love PayPal's services normally... this digital gifts service is so very poorly executed it's either illegal or very-very shady!
