Using paypal for local pickup

If you picking up you would want to wait to pay till you have seen and tested the items.
Imho of course.

Don't sweat it OP, it's not that complicated, just use friends option in PayPal and it is a done deal.

I sold an item here which was local pick up only.  The buyer sent me. 10% deposit which was non refundable and stated on his PayPal invoice.  He picked up 2 weeks later and paid the rest in cash.  Very easy transaction. 

PayPal done for local many times. Buyer listen to the gear and happily paid with no issues. Friends and family always.
No fees. No nonsense claims.

If buyer pays via paypal using goods and services method, at time of local delivery, couldn't you ask buyer to log into his phone and click delivered while you watch?