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This is a consistent problem. I've tried it on my Samsung Galaxy S Fascinate, HTC EVO 4G, HTC EVO 3D, and my HP Touchpad (CyanogenMod Android Mod). This has been going ever since I first tried to use the app, which was about 6 months ago. Whenever I get a new device I try it again and hope it will finally work. Every time I get the same error message.
Login Failed
We're sorry, a problem has occurred. Please Try again. (Error)
I only use the device over WiFi, and I don't use these devices with any cellphone service provider (ie Verizon, Sprint). The OS has ranged from Android 2.2 to 2.3.x.
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Wow, after more than two weeks you still have not got a reply. Seems these help forums are for users only to try and help each other. Does not look like actual paypal reps visit here or they don't care.
I also have a similar issue. The Android Paypal app does not log me in. It does not accept my PIN or my normal login credentials. Just says "system error please try again later" over and over again. Paypal used to have a good app for Android but now it seems to be junk...
Rod
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