Membership Plugin – After Paypal payment and return to site, account is not active

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.

Any ideas?