I created a test user, selected a subscription, went to paypal and paid, then returned to the website.
When trying to login as the test user I get "Sorry, this account is not active." on the normal wp login page.
The payment activity went through successfully in paypal - I have logged in and checked that there is "completed" entry in the "payment status" column.
In dashboard -> membership -> all members
the new test member is there but the status is "inactive" and there isn't a subscription.