Hi VJ,
Yes you can do this. You will need to either use the EnablePGateway or PGateway features. The key is to use either one of these as the short field name for the Options field where your user chooses the payment method.
We're having some trouble with our site but please try to get to
Demo 17 for EnablePGateway or
Demo 18 for a PGateway example.
Be sure to create different completion events to be fired for each choice. For example, you will need an email event and redirection event just for PayPal and another set for check payments and for Scholarships, too.
Be sure to link the PayPal events to the correct payment status.
Hope that helps. Let me know if you have other questions. Thanks!
Candace