When PayPal recognizes that your store syncs order tracking information quickly and reliably it improves your merchant account record.
By improving this record, you will reduce the amount of 'account reserve' on your PayPal account. In simple words, it just means PayPal will hold less of your money as a sort of 'guarantee fund'.
PayPal will also start releasing your funds up to 10X faster.
And most importantly, because your customers always see the up to date tracking information for their orders in their PayPal account, you will get up to 90% fewer PayPal disputes and chargebacks.