Payment Data Systems' Bills.com Enhances Product Offerings

Payment Data Systems' Bills.com Enhances Product Offerings 


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

Bills.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

Bills.com's person-to-person e-mail payments and other features allow consumers
to simplify and improve the process of managing their finances. Bills.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.

Bills.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 Bills.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 Bills.com site.
   *  Bills.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 Bills.com functionality
      as a customer branded offering.
   *  Bills.com Co-Label Offering -- Portals and Financial Institutions that
      choose to share labeling rights with Bills.com in order to avoid
      capital expenditure for a private label solution and still have access
      to all functionality.

  About Bills.com


Bills.com was founded in 1999 and is a wholly owned subsidiary of Payment Data
Systems, Inc.  Bills.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.bills.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.bills.com/ .  Bills.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, [phone] 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. 

DATASOURCE: Payment Data Systems, Inc.



CONTACT:  Geoffrey Eiten, Investor Relations of OTC Financial Network,

[phone] ext. 613, for Payment Data Systems, Inc.



Web site:  http://www.paymentdata.com/

http://www.bills.com/

http://www.otcfn.com/pyds 

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