Payment Data Systems Delivers Bill Payment Service for Debit Cards

Payment Data Systems Delivers Bill Payment Service for Debit
Cards
Alliance Begins Distribution of Pronto Banco(TM) to Over 7,000 Outlets
Nationwide 


SAN ANTONIO, July 15  /PRNewswire-FirstCall/ -- Payment Data Systems, Inc.
(OTC:PYDS) (BULLETIN BOARD: PYDS)  today announces, along with alliance partner
Secure Cash Network, Inc. and GTS Prepaid, a leading distributor of prepaid
telecom and financial service products, the availability of Pronto Banco(TM)
the first card to utilize Payment Data Systems' new bill payment service for
debit cards.  Pronto Banco(TM) is a new financial product designed with the
Hispanic customer in mind.  The alliance partners are expected to benefit from
offering an innovative and affordable financial product to the fastest growing
segment of the U.S. population.

The Pronto Banco(TM) 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(TM) 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 those 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 dollars were sent from the U.S. to Mexico, Central &
South America.  Sending funds using traditional methods like Western Union and
Moneygram typically results in charges equal to or over 10% of the amount sent.
 Pronto Banco(TM) is normally less than half the price and expected to drive
significant sales, profits and residual income for GTS retail partners.

"Pronto Banco(TM) provides great value and convenience to the unbanked,
Hispanic consumer," said Greg Bloh, President and CEO of Secure Cash Network,
Inc.  "Our deployment with GTS Prepaid delivers Pronto Banco(TM) to markets
with high concentrations of our primary consumer group who regularly visit
convenience store locations seeking financial products and services."

"The response to this product by our retail chain partners has been great,"
added Frank Squilla, Director of Sales at GTS Prepaid.  "They fully recognize
the potential of this product both from a profit and a foot-traffic stand
point."

"We are very enthusiastic about this initial delivery of the bill payment
service for debit cards," said Louis Hoch, President and COO of Payment Data
Systems, Inc.  "We expect these first steps to be followed by adding many more
distribution points throughout the United States over the next several months.
We anticipate that transactional volume to increase significantly as these new
distribution points are implemented.  This card is truly value-added and is
intended to serve what we believe will be a highly adoptive market."

About GTS

GTS Prepaid is a leading provider of prepaid products and services primarily
targeted to the convenience store industry.  The GTS Prepaid product line
includes all major prepaid wireless carriers, several top selling regional
carriers and GTS Prepaid's own Diamond Mobile, prepaid MasterCard/Visa,
DuoCash, Gift cards, unlimited residential long distance, the GTS
PhoneCard(TM), and a variety of demographically targeted phone cards, which can
all be dispensed from their EIDC POSA terminal or activated through existing
retail Point-of-Sale networks.  For more information, call GTS at (800)
240-3818 or visit their web site at http://www.gtsprepaid.com/ .  You may also
contact Mr. Frank Squilla, GTS, Director of Sales [phone] x496.

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(TM)
(Payroll Card), Pronto Banco(TM) and Paga Rapido(TM).  These products are made
available to consumers direct through employers and merchant locations
throughout the United States.  For additional information visit
http://www.securecashnetwork.com/ or contact Mr. Tony Muscarello, Secure Cash
Network, Executive Vice President [phone] x205.

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, (781)
444-6100 ext. 613.

With the exception of historical information contained in this release, this
release includes forward-looking statements made under the "Safe Harbor"
provisions of the Private Securities Litigation Reform Act of 1995.  These
statements involve risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements. 

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.gtsprepaid.com/

http://www.securecashnetwork.com/

http://www.bills.com/

http://www.otcfn.com/pyds 

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