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We recently just have our Paypal payment option "disappeared" in checkout page in Hikashop powered joomla site v 1.5 today. Before that it always display fine, and my client confirmed that she played around with the countries setting in the hikashop so I wonder if that is the issue which caused the disappearance of this paypal option?

I look forward to any reply to this question. Answers are greatly appreciated.

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It's possible yes. Make sure that you remove the "zone" restriction in your paypal plugin's options. Also, you can check the FAQ here: http://www.hikashop.com/en/support/documentation/integrated-documentation/29-hikashop-plugins-listing.html#faq