Payment Data Systems' billx.com Enhances Product Offerings


SAN ANTONIO, Sept. 1 /PRNewswire-FirstCall/ -- Payment Data Systems, Inc. (BB:PYDS) an integrated electronic payments solutions provider, announced today that its subsidiary billx.com is now providing a feature-rich version of its consumer online bill presentment and payment services at http://www.billx.com .

The enhanced service provides consumers the ability to pay anyone with an e-mail address, transfer money between multiple checking and savings accounts, view and pay additional eBills, and receive eBill summaries in their e-mail inbox.

"Security, convenience and broad functionality are extremely important components necessary to win consumers to electronic bill paying," said Mr. Ken Keller, general manager of billx.com. "As we have more than doubled our subscriber base over the past year, we believe our new offering is highly competitive and offers consumers considerable value and savings. We are committed to providing a fast, reliable and low cost alternative in the face of ever increasing postal rates."

billx.com revenues are continuing to grow at double-digit rates. We believe this growth is in part due to highly competitive product offerings as well as considerable value and ease-of-use for consumers. Additional growth has arisen from partner CheckFree by transferring customer bases from other portals such as Silicon Investor, GO2NET, Dogpile, Hypermart, and Verilytics

billx.com's person-to-person e-mail payments and other features allow consumers to simplify and improve the process of managing their finances. billx.com's comprehensive, integrated product allows consumers a single place to track, manage, and archive all their bills, payments and accounts. Consumers no longer need to subscribe to multiple electronic payment services.

billx.com offers the following features in addition to its standard integrated electronic billing and payment capabilities:

* Pay anyone with an e-mail address -- This service enables users to
electronically exchange money with any individual with an e-mail
address including online auction sellers. This is of great benefit
for those that may be seeking a lower cost, more convenient
alternative to PayPal(R). for their eBay(R) or other online auction
payments.
* Payment Account Transfers -- Currently, consumers have the ability to
set up numerous checking, savings, and money market accounts from
which they can make payments. Now, consumers have the ability to
conveniently transfer money between payment accounts allowing
consumers to manage all their finances in one location.
* More Online Billers -- Consumers have the ability to view and pay
bills from an increasing number of companies, including those not
currently delivering eBills through billx.com.
* eBill Summaries with Quick Links to Make Payments -- This service
allows consumers to receive dynamic summaries of their eBills via
email. The email includes links to quickly view and pay the eBill
without having to go to the billx.com site.
* billx.com Private Label Offering -- Portals and Financial Institutions
that choose to offer online facilities to their subscribers/consumers
for bill presentment and payment can provide billx.com functionality
as a customer branded offering.
* billx.com Co-Label Offering -- Portals and Financial Institutions that
choose to share labeling rights with billx.com in order to avoid
capital expenditure for a private label solution and still have access
to all functionality.

About billx.com

billx.com was founded in 1999 and is a wholly owned subsidiary of Payment Data Systems, Inc. billx.com provides an easy, secure and convenient online bill presentment and payment service that enables consumers to view, pay, and manage their bills via the Internet. For more information, visit http://www.billx.com or call 210-249-4100.

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).

Additional products available from PDS include services and products that can be implemented more quickly and less expensively than the alternative of adding multiple payments companies as these solutions offer a full range of payment processing capabilities. These service offerings include: one time and recurring ACH debits and credits, electronic lockbox and returned check 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.

Payment Data is the owner of the electronic bill payment portal, http://www.billx.com . billx.com has the ability to transmit electronic payments to thousands of national billers.

For additional information, visit http://www.paymentdata.com . Investor information can be found at: http://www.otcfn.com/pyds . Contact: Geoffrey Eiten, Investor Relations, OTC Financial Network, (781) 444-6100 ext. 613.


FORWARD-LOOKING STATEMENTS DISCLAIMER

Except for the historical information contained herein, the matters discussed in this release include certain forward-looking statements, which are intended to be covered by safe harbors. Those statements include, but may not be limited to, all statements regarding our and management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. Investors are cautioned that all forward- looking statements involve risks and uncertainties including, without limitation, the factors detailed from time to time in our filings with the Securities and Exchange Commission. One or more of these factors have affected, and in the future could affect, our businesses and financial results in the future and could cause actual results to differ materially from plans and projections. We believe that the assumptions underlying the forward- looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to our management. We assume no obligation to update any forward-looking statements, except as required by law.

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