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You're certain? Try it in Paypal and see if it's the correct one.
Have you tried removing the Paypal from your Steam account and re-add it?
settings -> webbrowser -> clear cache and cookies.
on chrome:
clear also cache and cookies and most importantly, Google Chrome has an error where it doesn't save the new password. if you use that function, even if you enter another one, chrome will replace it with the old saved one. so you have to delete the saved password to fix it.
I should note that I just got a new computer, and this is the first time I am trying to purchase something on Steam via Paypal. I am also doing this in Taiwan, so maybe that has something to do with it? It was not an issue on my older computer.