[carterparks]

Camera is used for their mobile check deposit feature: https://personal.paypal.com/us/cgi-bin/?cmd=_render-content&...

Microphone could be used for some kind of dictation feature?

[maxxxxx]

Haven't they cancelled that feature? I remember getting an e-mail

http://consumerist.com/2014/06/16/paypal-discontinues-mobile...

[Bedon292]

The microphone is bundled with the camera within the permissions. That means they have to ask for permission to use both in order to have the camera for the feature you mentioned.