Payment Data Systems Reports Net Income for First Quarter
 

-Revenue Increases 36% from Prior Year-

  

San Antonio, TX May 14, 2008 - Payment Data Systems, Inc. (OTCBB: PYDS), an integrated electronic payments solutions provider, today announced financial results for the quarter ended March 31, 2008.

Revenues increased 36% to $861,745 for the quarter ended March 31, 2008 from $633,196 for the first quarter of 2007.  Net income for the quarter ended March 31, 2008 was $311,407 compared to a net loss of $611,555 for the prior year quarter. The profitability in the current quarter was due to the sale of certain bill payment patents in January 2008 for a gain of $750,000.

Commenting on the results for the quarter, Michael R. Long, Chairman and Chief Executive Officer of Payment Data Systems, said, “During the first quarter, we closed sales for 40 new payment processing agreements. We are pleased to see both transactions and revenue grow from the prior quarter, while we continue to remain debt-free.”

 For further information regarding our financial results for the first quarter of 2008, please read our Quarterly Report on Form 10‑Q for the quarter ended March 31, 2008, which was filed today.
 

About Payment Data Systems, Inc.

Payment Data Systems, Inc. is an integrated provider of world class electronic payment solutions to merchants, billers, banks, service bureaus, and credit and stored-value card issuers. PDS specifically tailored solutions manage critical points along the full spectrum of the transactional chain, ranging from card issuance to payment acceptance to electronic bill payment.

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 holds the exclusive license to market the Natalie Gulbis Gift MasterCard (www.nataliemastercard.com).

Payment Data Systems Inc. (OTCBB: PYDS) is a registered ISO/MSP of MetaBank and a registered ISO/MSP and TPS/TPP of Merrick Bank Corp., South Jordan, UT.

Payment Data is a Level One PCI compliant Third Party Servicer.

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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