Bitcoin has the potential to disrupt current payment processing. The main advantage to merchants is fraud reduction. Bitcoin transactions cannot subsequently be reversed by the customer once received by the merchant.
Additionally, bitcoin transactions have lower transaction fees than credit cards, wire transfers, cash couriers, and so forth.
No wonder that more startups are developing bitcoin applications.
Agreed, but this factor is reduced for in-person purchases from brick and mortar merchants. Additionally, many online web sites feature merchant reliability scores, e.g. Amazon.
Recent US legislation will make credit card processing fees more visible to consumers, with the consequence that low cost payment processors such as bitcoin will be even more competitive.
The Bitcoin protocol has features (contracts) to deal with that, but I don't think it's really implemented/used yet. And I'm not sure how it would work in the context of pizza or other physical goods delivery.
I don't get why people keep promoting the "no chargeback" aspect of Bitcoins, since the potential for chargebacks is often a good thing, and essential for establishing trust. Furthermore, Bitcoin (like any reasonable currency system, including cash) allows you to layer a protocol on top of it to allow intermediaries that can do chargebacks in the case of bad behavior.
"No chargebacks" = "hey, just like with physical cash, someone can just run off with it once you transfer the money". Sure, sometimes that's what you want, but it's not something you have to accept as a result of using that currency type or unit.
Additionally, bitcoin transactions have lower transaction fees than credit cards, wire transfers, cash couriers, and so forth.
No wonder that more startups are developing bitcoin applications.