SAN ANTONIO, TX--(MARKET WIRE)--Sep 14, 2004 -- Payment Data Systems, Inc. today announces, along with alliance partner Secure Cash Network, Inc, and Celluphone, "America's Premier Master Agent," to the wireless industry, the availability of Pronto Banco™, the first card to utilize Payment Data Systems' new bill payment service for debit cards. Celluphone's innovative EPINs(SM) system, which is now in over 1,500 retail locations, allows wireless retailers to purchase prepaid airtime over the phone or online, at the moment the customer is ready to pay for it. In keeping with the Pronto Banco market focus, many of the retailers using EPINs target cash-based unbanked customers.

The Pronto Banco™ Twin Card Packet is an ATM/debit card system that allows the consumer to send one of two cards to a friend or relative in another country providing access to funds from either card. Another value-added feature in the Pronto Banco™ packet is a prepaid Estafeta envelope allowing the primary cardholder the option of sending the second card to Mexico. Estafeta, Inc. is Mexico's leading and most reliable express shipping company with complete coverage of the Mexican territory. Consumers can use either card to access money via ATMs, or shop at millions of POS retail locations worldwide. Bill payment is being initially delivered with a pay by phone capability. The next major functional enhancement will be the ability to pay bills at the counter of Internet-enabled convenience stores. This functionality will be available to stores within the next two months.

Nearly 35 million Hispanics reside in the United States. Hispanics are the fastest growing segment of the U.S population. It is estimated that approximately 50% of Hispanics are unbanked and regularly send money home. In 2003, nearly $23 billion were sent from the U.S. to Mexico, Central & South America. Sending funds using traditional methods like Western Union and Moneygram typically result in charges equal to or over 10% of the amount sent. Pronto Banco™ is normally half the price and is expected to drive significant sales, profits and store traffic for Celluphone retail partners.

"We are pleased Payment Data Systems has joined us to provide bill payment functionality to our Pronto Banco™ product," said Greg Bloh, President and CEO of Secure Cash Network, Inc. "Delivering our total financial solution to the unbanked through Celluphone retail locations is very exciting and is consistent with our mission to serve the needs of this growing consumer market."

"The addition of Pronto Banco™'s bill payment service allows us to continue to expand the products we offer independent retailers who are constantly looking for additional revenue streams," added Mike Mohr, President of Celluphone.

"We are very enthusiastic about this expanded distribution of the bill payment service for debit cards," said Louis Hoch, President and COO of Payment Data Systems, Inc. "Given the reach and reputation of Celluphone and the fact that many of the Celluphone retailers cater to unbanked customers, we believe the Pronto Banco™ with bill pay is ideally matched with our market focus for this product."

About Celluphone

Founded in 1983, Celluphone was appointed the first Authorized Agent for Verizon Wireless (then AT&T AMPS) thirteen months before cellular service was even launched in the Los Angeles area. Since then, they've grown to become one of the largest wireless distributors in the country.

Since its inception, Celluphone has recognized that retail dealers would be a crucial force in the wireless industry. With this in mind, their sole focus has been to provide support for independent dealers in every aspect of their wireless business. Celluphone offers dedicated field support, efficient activations, competitive commissions, and the broadest selection of handsets and accessories available. In addition, their Prepaid Program addresses an entirely different category of customer -- providing immediate up-front profits and on-going income through additional airtime sales.

Through their offices in Los Angeles, San Diego, San Francisco, Sacramento, Houston, Dallas, San Antonio, Chicago, Wisconsin and St. Louis, they currently support more than 3,000 active dealers. Celluphone's proven success in this industry has made it "America's Premier Master Agent" -- their broad range of sales, service, and support programs give their dealers a decided edge in this unique, competitive marketplace. For additional information, visit www.celluphone.com or contact Adam Waugh, Marketing Director, at (323) 727-9131.

About Secure Cash Network, Inc.

Secure Cash Network, Inc. (SCN) is a Consumer Products and Financial Services company specializing in Stored-Value ATM/Debit products for unbanked consumers. SCN offers several prepaid card products including Secure Cash Payday™ (Payroll Card), Pronto Banco™ and Paga Rapido™. These products are made available to consumers direct through employers and merchant locations throughout the United States. For additional information visit www.securecashnetwork.com or contact Mr. Tony Muscarello, Secure Cash Network, Executive Vice President (281) 419-6950 x205.

About Payment Data Systems, Inc.

Payment Data Systems, Inc. (OTC BB:PYDS.OB - News) 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, www.billx.com. billx.com has the ability to transmit electronic payments to thousands of national billers.

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

Contact: Geoffrey Eiten, Investor Relations, OTC Financial Network, (781) 444-6100 ext. 613.

     Contact:
     Geoffrey Eiten
     Investor Relations
     OTC Financial Network
     (781) 444-6100 ext. 613