Sorry, it seems that there are no available payment methods for your state

I’m having this error at the checkout page in a fresh new WordPress + Woocommerce install.

Woocommerce PayPal Payments plugin is correctly configured and active as the only payment method, also is connected to the PayPal sandbox account.

However on the cart or checkout pages it doesn’t show the expected buttons. Only this message:

“Sorry, it seems that there are no available payment methods for your state. Please contact us if you require assistance or wish to make alternate arrangements”.

Not sure where else to look at or debug to have this plugin correctly setup to work.

Please advise?

Thanks,