This is confirmed in the PeopleSoft 9.2 Release Value Proposition (July 2012) that the pictures taken from iPhone will be included in the transaction to PeopleSoft:
"the iOS-based Oracle iReceipts application enables users to take pictures (or pull from the camera roll) on an iPhone and feed the pictures into PeopleSoft Expenses - My Wallet so that the photo file attachment is included with the transaction"