Yes, cashback shows as a credit on your Quidco account, and once Quidco gets the money (usually 2-3 months) they will pay it to your Paypal account.

Note that there is a £50 limit to Quidco Paypal payments. This is not a problem for this transaction, but if you use it for other stuff (eg 10% cashback on all Priority Club hotels, 16% cashback on Accor hotel stays at present etc) then it can be an issue. If you have £50+ due at the end of the month, they won't pay it to Paypal and neither will they split it - it remains stuck in Quidco until you can find a UK bank account to do a transfer.