Already we have two major Bitcoin-based payment processors (Bitpay and Coinbase) and many minor ones. I don't think that the new processor will be able to compete with them. Sorry to say this, but they are late.
I agree. It's a good idea, but I can't see many people going to buy or sell their coins this way, but maybe I'm wrong. The one good thing about zip zap is the sheer number of locations but I still think you have to use an exchange with the service as well so you can just cut out the middleman of zip zap any way.