PayPal is not supported (US)

on my iPhone 6 running 8.1, under Account Settings, Payment Type it says "PayPal is not supported on this device.  To manage or change your payment method, go to the iTunes Store on your computer."  I did that and made sure PayPal was selected, signed in to make sure everything was fine, it is.
Go back to my iPhone to set up Family Sharing and it says that I must have a valid payment method and sends me back into this loop.  PayPal is fine, I actually bought a .99 cent app to make sure that it was working and it does.
Any ideas?

I had this same problem also.  The problem has to do with your credit card number associated with you iCloud account.  To solve this problem, you need to update your credit card/payment information by doing the following on your iPad / iPhone / iTouch:
     Settings > iCloud > click on your account > Payment Information
Update this section with your correct credit card information and Save.

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