agreed owning the exchange rate of your town is a solution, but when you start getting to country size level and lots of money transfers, you better have the paperwork ready. but there is nothing stopping you, your not dreaming.

1) yes that is a problem, walmart at the moment with all the conversations i have had, are very tight lipped and not rally showing that loving feeling.. if any feeling at all.. but if we can get the independents in first, even if thy are few and far between, then that is then ammo to use on their corporate competitors.

2a) the only way to avoid the 15minute burden but still have atleast confirmed coins. is a pre payment wallet. if any of you have used mtgox or btc-e, where they have 'btc-e codes' and 'mtgox codes' you would understand this. basically people put in their $50 of bitcoins at the start of the week into the service, this gets confirmed, then when customers 'spend' bitcoins the system just moves funds from customers account to the merchants account using codes.. (kind of paypal-esq idea)(research offchain transaction)

2b) well you are the bitcoin representatives, if you want to start your own exchange, or tally the prices to localbitcoins, coinbase or anything else, take it on.. its all your project, your own service and its all your own profit to play with.

3) the QR codes would be generated on webservers so the flaw of android wont be usd.. all the android would be ultimately used just for merchants to send a dollar amount to the web service, and then display the QR code.. the android wont do any calculations or anything, its just a display terminal in essence.

This is a very interesting idea. Being an entrepreneur I will be doing some brainstorming with this. There are not many ppl that even know what bitcoin is in my little town, but many could benefit from it, especially business owners who are tired of sending a % of their earnings to visa everytime someone swipes a card.

Yes, but they are worried that the taking bitcoins will cost them more if the value against USD drops before exchange.
So that's why they want to work with instant transfer to USD which I think bitpay offers, but that only results in an illusion of using BTC - it's still fiat based (and bitpay isn't free to them either)

p only ever recommend people putting pocket money amounts into webwallets for temporary measure.. like the example given here, but i understand your point about theft risks. thats why i thought for the local stores that a person of that town manages, it would be easy for merchants and customers to slap them with a wet fish if they did steal it... by living in the same town..

but that was just one option, i did mention others