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Practically yesterday I made a few purchases on steam without any problems, but I can't use my PayPal balance on steam now for some reason.
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Well, I tried what you said, but still, it doesn't ask me to use my Paypal balance, are there any other solutions?
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@Kreegah 's solution is only the half.
1. As Kreegah says, "Change from "My paypal" to "Paypal" under payment options on Steam purchase window."
2. Make sure the "Save the payment information for future" is unchecked!
3. Click Next and then it will work.
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I have this problem too ! even I changed My PayPal to PayPal in buying process But it still not work!

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