Payment Data Systems Profiled in OTC Financial Network Report

SAN ANTONIO, March 8 /PRNewswire-FirstCall/ -- Payment Data Systems, Inc. (OTC Bulletin Board: PYDS - News), an integrated electronic payments solutions provider, announced today that OTC Financial Network, a division of National Financial Communications Corp., has issued an InvestorFacts report on the Company. The report includes a profile of the Company's superior electronic payment processing solutions, proprietary technology, as well as marketing and distribution strategies, future growth strategies and investment considerations. Interested parties can view the report online at http://www.otcfn.com/pyds/report.html or call 781-444-6100 ext. 613 for reprints.

Geoffrey Eiten, president of National Financial Communications Corp., said, "Rapid technological developments in recent years are giving rise to tremendous changes in the way company's conduct business around the world. Retailers and other billers are now able to conduct business faster than ever, and their ability to compete in the marketplace is often dictated by the capability of processing payments more efficiently than competitors."

Eiten continued, "Payment Data Systems delivers industry-first, unparalleled technology, and then partners with leading companies that have already forged extensive distribution and marketing arrangements. The Company is poised to capture rapid market leadership as it gains first entry into previously underserved, yet growing, segments of the burgeoning industry and then secures additional strategic partnerships."

Payment Data Systems recently announced that it has filed for a patent from the U.S. Patent Office for an industry-first technology that will enable bill payment using a bank account or cash funded debit card. In expectation of this patent, the Company has entered into a strategic relationship with Secure Cash Network, Inc., a consumer products and financial services company that specializes in stored-value Debit/ATM products for 'unbanked' consumers, to provide the electronic payment industry's first bill payment debit card.

About OTC Financial Network

OTC Financial Network, a division of National Financial Communications Corp. (http://www.nationalfc.com ) based in Needham, Massachusetts, is a full- service financial communications and investor relations firm that specializes in micro-cap companies. The Company's proactive campaigns are custom designed to strengthen each client's presence in the investment community by disseminating breaking news and fundamental positions to spheres of influence; building upon the client's existing shareholder base; and soliciting institutional coverage. For more information, visit http://www.otcfn.com .

About Payment Data Systems, Inc.

Payment Data Systems, Inc., is an Integrated Payments Solution Provider delivering comprehensive, cost-effective solutions to billers and retailers for the processing and management of electronic payments via the Internet, point of sale, or payments taken by Customer Service Representatives or an Interactive Voice Response (IVR).

Payment Data Systems' electronic payment processing solutions can be implemented more quickly and less expensively than alternative solutions because PDS allows for a full range of payment processing capabilities using a single, comprehensive storage retrieval system that allows for consolidated tracking and reporting of all payment types, regardless of source or channel. These service offerings include: one time and recurring ACH debits and credits, ACH lockbox and RCK services, Web pay acceptance of credit cards and checks, telephone pay to Customer Service Representatives for acceptance of credit cards and checks, Interactive Voice Response systems which completely automate the payment receiving process, and data warehousing that enable the storage and retrieval of all payment history from one location.

For additional information, visit www.paymentdata.com . Investor information can be found at: www.otcfn.com/pyds .

Contact: Geoffrey Eiten, OTC Financial Network, (781) 444-6100 x613 or geiten@otcfn.com .

Safe Harbor Statement: This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, economic conditions affecting retailers; continuing success introducing new products; the Company's ability to finance its planned expansion efforts; and changes in regulations affecting the Company's core business. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.

Disclaimer: OTC Financial Network, a division of National Financial Communications Corp., is not a registered broker/dealer and may not sell, offer to sell or offer to buy any security. OTC Financial Network profiles are not a solicitation or recommendation to buy, sell or hold securities. An offer to buy or sell can be made only with accompanying disclosure documents from the company offering or selling securities and only in the states and provinces for which they are approved. Information or opinions in this release and the company's profile are presented solely for informative purposes, and are not intended nor should they be construed, as investment advice. Full disclaimer information can be found at: http://www.otcfn.com/pyds .




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