BitPay as a payment processor in particular: https://bitpay.com/
BitPay as a payment processor in particular: https://bitpay.com/
All that is secondary though to the extreme lack of stability of value, which is pretty important in a medium of exchange. You might as well be telling him to accept tulips.
I'd be interested to see someone do a USD -> BTC -> INR -> BTC -> USD and see a) if it's even possible in a reasonable amount of time and b) at what cost.
Edit: here's a link to an Indian "local integration partner" of bitpay http://indiabitcoin.com/. They are buying bitcoins for 82% of what they are selling them for.
Oh, that isn't the case? Well expect to pay a transaction fee on buying bitcoins (about 5.65% where I live last time I checked).
Once everyone uses bitcoins, it will be a different story. Until then, it's pretty much like anything else.
Correct me if I am wrong.
It especially isn't suitable for an environment like eBay where you could potentially have less than trusthworthy sellers. In such a situation it is necessary and beneficial to have some sort of middleman (could even be the government), that you could go to, in case whatever you "bought" wasn't what the seller represented it to be (or really any other such issue).