I've been unable to find an accurate answer for this.
As we know already, PayPal's REST API doesn't have a option for applying discount code. However, we can append another item to the item_list with a description of a I.e. Promo / Discount code.
So e.g. breaking this into human readable data, here's what I'm passing to the API.
Transaction
Amount: 100
item_list: [ product1, 60 ], [ product2, 60 ], [ coupon_code, -20 ]
Visually, This route should work (as it does in the classic API). However, the PayPal API doesn't allow negative numbers.
Ideally, we want to use the signed / OAuth route via PayPal REST API Vs. the open / classic API.
Update 1/13/2014 I noticed Storenvy has the ability to apply discounts to their connected user's PayPal accounts. However, If I recall Storenvy has a partnership with PayPal - I'm wondering if they're on a specific internal rest API version for the discount support?