Do I need a Yahoo! Wallet to purchase a paid app?
You do need to have a Yahoo! Wallet to purchase a Connected TV app, or other Yahoo! premium product. However, if you have a Yahoo! ID, you already have a Yahoo! Wallet -- you just need to activate it. To do so, go to the Yahoo! Wallet homepage, and click the "Payment Methods" tab. You will then be able to enter your credit card information so you can use it purchase an app.
At this time, the Connected TV Store does not support PayPal.