I ended up coming by this great forum post on how to make your own (free) gift certificates with paypal. (Since there is a possibility that the forum can be deleted, I will copy and paste below, but please feel free to visit original post)
*After you login in to your paypal account, click here https://www.paypal.com/us/cgi-bin/webscr?cmd=_giftcard-intro to get to the Gift Certificate page of your PayPal account. (or go My Account > Profile > Redeem Gift Certificates and Points if not able to link directly)
*Click Create a gift certificate now and fill out the Gift Certificate form making sure to put your Etsy store’s url for Shopping URL. Be sure to check out all of your options, and check out the Gift Certificate Manual for more info.
*Click Create Button Now and PayPal will generate HTML you can then copy & paste into your store or any other website, blog, MySpace page, whatever.
That’s it! Now when someone receives a gift certificate to your store, they can enter their redemption code when they checkout.