Does Paypal have a merchant referral program?

Paypal has what they call their Merchant Referral Bonus program which is what you're talking about. It's a bit hard to find, but you need to log in to your Paypal merchant account and click on the Merchant Tools tab.

On the top right of that screen, there's a link for Merchant Referral Bonus called "learn more". Click on that and you'll be presented with a URL that you can then encourage your colleagues to click on when they go to sign up for their own Paypal merchant account.

By way of example, my link is https://www.paypal.com/us/mrb/pal=BWVS9V5HS79XJ and if you click on it and sign up for a merchant account, I'll receive a bonus (thank you very much!)

The terms of the bonus aren't that great because they're based on the performance of the merchant over the subsequent 12 months: if your colleagues are only going to selling the occasional eBay auction item, don't expect to see much more than the cost of a beverage at Starbucks. Since I just signed up a colleague for Paypal, I can share the letter from Paypal that details exactly how the referral program works:

I guess my overall comment is if you think of this as "money for nothing" then it can be a pretty good deal, but for most merchants, the commission from a referral is going to be pretty paltry indeed.

Maybe you should just give them my referral link instead? :-)