The current version of Zen Cart already has the PayPal logo showing next to the radio button. You can alter that image slightly if needed, using PayPal-approved logos:
Find the code in /includes/languages/english/modules/payment/paypal.php:
Code:
// to show the PayPal logo as the payment option name, use this: https://www.paypal.com/en_US/i/logo/PayPal_mark_37x23.gif
// to show CC icons with PayPal, use this instead: https://www.paypal.com/en_US/i/bnr/horizontal_solution_PPeCheck.gif
define('MODULE_PAYMENT_PAYPALWPP_MARK_BUTTON_IMG', 'https://www.paypal.com/en_US/i/logo/PayPal_mark_37x23.gif');
... and change the image as desired.
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