The error message you’re encountering typically arises when there’s an issue with the PayPal account setup.
Unilateral Payments: This error often occurs when a payment is attempted to be sent to an email address that is not confirmed or not associated with a PayPal account.
Previously, I have seen merchants figure out that the cause of this error was that the email address on their Paypal business account was not verified. PayPal technical support should be able to help out. Once the email address is verified, everything should start working as normal!