That's a good point, I don't actually know. I just assumed yes because they would ask. I also didn't want to complicate the process of releasing the funds – perhaps that was naive.

I believe in this checkout flow, it kicked me over to PayPal where I could specify the shipping address there. PayPal probably relays the address back to the merchant, akin to checking out with Apple Pay where you specify a shipping address via the Wallet app.