Pure merchant processing has been a commodity business in the United States for a long time. Everybody knows that large, established merchants have unbeatable pricing and it’s the small and medium sized businesses who generate the industry’s profits. Over time, though, these profits became artificially inflated when concealed pricing and other deceptive practices rose up in the U.S. SMB market.

Now, thankfully, that’s changing. Regulation, legislation and litigation are making sure of it.

Merchant acquirers, like banks and publicly traded processors, have been under pressure from plaintiff attorneys, regulators, law enforcement, CFPB and FTC over business practices, often related to sponsored sales organizations. The legal burdens and low margins that come along with these wholesalers now have acquirers looking in a different direction for earnings growth.

Some are making smart moves by rationalizing their sales channels and finding “new TAMs” at the same time.

TAM stands for “total addressable market”, which is the total revenue opportunity that competitors split up in a particular market. In other words, it’s the size of a market pie. Good businesspeople look for a way to participate in big pies and in pies that are growing fast. It’s even better when both size and growth occur in the same pie.

That’s precisely what’s happening in the small business digital advertising market.

The research firm, BIA Kelsey, calculates that U.S. small businesses will spend $148B in advertising during 2017, with $50B of it devoted to digital forms. What’s more is that the spend on traditional TV, Radio and Print advertising is expected to shrink by 3-5% per year, while digital ad spending -especially on those for mobile devices- will grow at 12-15% per annum for the next 5 years.

Digital ad services for small business is a big and fast growing pie!

With years of experience and extensive relationships in the SMB market, progressive acquirers and smart sales organizations are well positioned to gain from this digital ad surge. Success will hinge upon having the right suite of services that are both easy to implement and effective in boosting merchant sales.

RevChip sits at the intersection of payments and digital advertising. Because of its high performance, multi-application architecture, RevChip provides not only the latest in EMV-NFC payments, but also makes possible simple-effective ad services like Text Receipts, Bounce Back Coupons and Email Gathering.

RevChip’s ad services are a profitable complement to any payment processing business. By installing them, acquirers and sales organizations can make a positive impact to merchants’ top line sales and, in the process, forge deeper customer relationships.

EMV need not be a huge expense or a technology hassle. Merchants should be able to preserve their current POS marketing programs and implement chip cards and Apple Pay in just a few days. If you agree, check out RevChip.