Payment Data Systems Signs Premier Insurance Provider to Multi-Year Payment Processing Agreement
- Adds Approximately $30 Million in Annual Transaction Volume -

San Antonio, TX January 4, 2007 Payment Data Systems, Inc. (OTCBB: PYDS) today announced the signing of a multi-year agreement with a premier insurance carrier that is a listed member of Standard and Poor’s Mid-Cap 400 Index and traded on the NYSE.

The auto-renewing agreement calls for Payment Data to provide payment processing services for the company and is expected to generate over $750,000 in gross revenue for Payment Data each year. The customer is scheduled to start processing early this month.

“Michael Long, Payment Data’s CEO, said, “We are extremely pleased to have this foremost insurance carrier as part of the Payment Data family of more than 12 other insurance companies. They have clearly established themselves as a market leader and believe their offerings will be enhanced by taking advantage of the PDS solution set for merchant processing.”
 

About Payment Data Systems, Inc.

Payment Data Systems is an integrated payment solutions provider to merchants and billers. The organization provides an extensive set of products to deliver world-class payment acceptance. Payment Data has solutions for merchants, billers, banks, service bureaus and card issuers. The strength of the company is its ability to offer specifically tailored solutions for card issuance, payment acceptance and bill payments.

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

Payment Data Systems Inc. (OTCBB: PYDS) is a registered ISO/MSP of MetaBank

Payment Data’s intellectual property includes U.S. Patent Number 7,021,530 that relates to bill payments made with debit and stored value cards.

For additional information, visit www.paymentdata.com. Contact Michael Long for Investor Relations information at 210.249.4040 or email at ir@paymentdata.com.
Payment Data Systems, Inc.
Michael Long
Chairman and CEO
phone: 210-249-4040
 
  
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