You are right
The usergroup update isn't performed until your site receives a notification from paypal advising that the transaction has been completed.
Additionally, if the transaction goes through and then at a later date is reversed in paypal the user will revert back to the default group.
Also, if the paypal transaction is done with an echeque, which usually take 10 days to clear, the usergroup isn't updated until paypal sends the notification.
All of this is automated so you shouldn't have to do anything
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