I was recently prototyping a shooter like the game and wondered if I could draw an extremely basic smiley face on my player represented by a simple Capsule. That way, when the player would spin around, there would be a sense of rotation. I don’t know much of Photoshop but I did try with a 512x512 transparent PNG made with Paint.Net having a very sorry excuse of a mouth and two ugly eyes. But no matter how I applied the material, it just wouldn’t fit and also keeps repeating/tiling. After Googling for a while, results started to point more towards blender and that application is currently out of my hobbyist-league.
I don’t know how the UV mapping is setup for capsules, but a quick way to let you see the direction it is facing is to just parent a smaller capsule to it, rotated 90 degrees, to form a nose.
I’m not sure if the default capsule is even UV unwrapped, but if it is, you should be able to line up the face by tweaking the UV offset parameters in the material you have applied to the capsule.