Are Chinese merchants allowed to use a processor like BitPay instead of receiving BTC for goods/services directly?

Isn't bitpay missing?

Because the psychology of numbers influences the perceived value of said good. It's perfectly fine to criticize the word "bits", but I fear those critics are missing the point of this debate: we need to price goods as whole numbers, regardless of the naming convention.

Why bits? Because people are conditioned since birth to think of prices as whole numbers. There's a reason retailers price their goods and services at $19.99, $24.95, $99, etc.

As PayPal president David Marcus said: "Bitcoin is good, NFC is bad"