Payment Data Systems (PYDS) 

PYDS is experiencing significant growth month over month in both the total dollar value and volume of transactions being processed.

Website: www.paymentdata.com

To view the Payment Data Systems profile in its entirety please visit http://www.smallcapreview.com/pyds.htm

Approximate Shares Outstanding: 22.5M

 Market Cap: $7.2M

 Recent Price: $0.32 

PYDS Investor Highlights:

• An emerging leader in processing ACH (check), credit, and debit card payments??”both one-time and recurring-- for some of the nation??™s largest billers and retailers.
• Technology boasts ease of use, enhanced efficiencies and lowered costs.
• The same experienced management team that previously took Billserv, Inc. from the OTCBB to gain a NASDAQ National Market listing with a peak market cap of $600 million.
• Non-bank financial services industry estimated at $280 billion.
• Robust solutions for both low and high volume billers.
• Products include state of the art tools for privacy, risk management, security and fraud detection.
• Payment Data Systems continues to experience significant growth month over month in both the total dollar value and volume of transactions being processed.
• Strong reseller/client partnerships including multi-year contracts/agreements with ACH Commerce, Secure Cash Network, Yodlee, and Kubra.
• Market cap is $7.2 million with shares at 32 cents and shares outstanding of approximately 22.5 million.
• Secured $10 million Equity Line of Credit that will allow for planned expansion and acquisition activities.
• The electronic payment services industry is experiencing phenomenal growth. 
• Filed patent application for a supporting technology to enable bill payment coupled with Debit/ATM cards.  
• PYDS powers www.reloadhere.com a website dedicated to the loading of debit cards.
• Significant licensing potential with Financial Institutions and card associations like VISA, MasterCard and American Express from company??™s patent pending for proprietary bill payment and debit card loading service.
• Fulfilled an initial order of 50,000 debit cards by Credit Payment Services, Inc. (CPS) is a high growth provider of consumer-oriented loans.
• Partnered with Secure Cash Network to provide a dual debit card targeted to the un-banked Hispanic market that provides for secure wire transfers to home countries. Distribution of the card has begun and is now being delivered to over 10,000 retail outlets across the United States.
• Announced that 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.
• Signed an exclusive, multi-year merchant services and credit card gateway agreement with the United Way of San Antonio and Bexar County in Texas.
• Announced that Yodlee has selected Payment Data Systems to deliver account-to-account funds transfer capability to supplement Yodlee's product offerings for their customer base of more than 150 leading financial institutions and portals. PYDS' agreement with Yodlee is for three years and has the potential of providing new revenues of more than $3,800,000 a year.
• Announces agreement with KUBRA that could generate $45 million in Annual Gross Revenues.

Americans' use of credit cards, debit cards and electronic bill paying has surpassed payment by paper checks. The balance has clearly shifted from check writing to electronic payments in large part because of reduced processing time and lower costs. This presents an enormous opportunity for Payment Data Systems (PYDS) to capitalize as a pioneer in the field. 

The electronic payment services industry is growing at a phenomenal pace as consumers and retailers ditch paper checks in favor of faster, more convenient and safer methods of payment processing. PYDS takes an innovative and early market approach by providing world-class integrated payment solutions to businesses and consumers alike. 

Profile

Payment Data Systems (OTC BB: PYDS) is an integrated payment solutions provider to merchants and billers, delivering comprehensive, cost-effective solutions 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). The Company provides an extensive set of tailored products to deliver world-class payment acceptance, processing, and management.

Additional products available from PYDS include services and products that can be implemented more quickly and less expensively than the alternative of adding multiple payment vendors and offer a full range of payment processing services. 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 automates the payment receiving process, and data warehousing that enables the storage and retrieval of all payment history from one location.

PYDS is also the owner of the electronic bill payment portal www.bills.com.

Also, through reselling agreements with its partners, PYDS is poised to dramatically increase the promotion and delivery of its ACH and credit card products and services to national financial institutions, billers and retail merchants. Multi-year contracts, new partnerships and products combined with market penetration into the consumer online billing sector, position PYDS to rapidly grow revenues and earnings, while building shareholder value in 2005 and beyond.

Revenues for bills.com are continuing to grow at double-digit rates and the Company believes 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 PYDS' ability to partner with industry leaders to include Yodlee, Secure Cash Network, and ACH Commerce as well as by transferring customer bases from other portals such as Silicon Investor, GO2NET, Dogpile, Hypermart, and Verilytics.

PYDS is becoming very successful in attracting and servicing significant companies in the industry. Over the past several months, PYDS' ability to move from contracting traditional retail merchant services business to signing customers of an ever-increasing size and scale has proven promising and their sales pipeline is full of opportunities that could lead to exciting new sales from billers and merchants of all sizes and many different industries.

Recent News and Press Releases

Transaction Volumes for December Projected as PDS' Best Processing Month to Date

PAYMENT DATA SYSTEMS INC Files SEC form 8-K

Payment Data Systems, Inc Financials

Payment Data Systems Signs Second Consumer Loan Company

Payment Data Systems and Yodlee, Inc. Sign Multi-Year Funds Transfer Agreement

Payment Data Systems, Inc. Expands Sales Force

PAYMENT DATA SYSTEMS INC Files SEC form 10QSB, Quarterly Report

Payment Data Systems Fulfills Initial Order for 50,000 Debit Cards

Payment Data Systems Offers Customizable Recurring Bill Payment Sites to Billers and Debit Card Issuers

Strategic Partners  

Yodlee is the trusted leader in enabling financial service providers (FSPs) to develop superior financial products and services, increasing customer profitability. Yodlee operates in the U.S., U.K., Hong Kong and Australia, and has amassed nearly four million users, over $180 billion in aggregated assets across its network, and over 150 clients, including the world's top financial institutions and portals: AOL, Bank of America, Citibank, CUNA, Fidelity, J.P. Morgan Chase, Merrill Lynch, MSN, Wachovia, and Yahoo. Yodlee is an authorized reseller of all of PYDS' IPS Account to Account Funds Transfer service.

ACH Commerce, LLC is a leading ACH (Automated Clearing House) processing company that provides outsourcing services for financial institutions and a full array of ACH services to corporations. ACH Commerce is an authorized reseller of PYDS' IPS Credit Card Gateway and IPS Merchant Services.

KUBRA is a leading provider of enterprise information solutions that create value for its customers in the form of enhanced access to new markets, reduced costs and increased profitability. Kubra is an authorized reseller of PYDS' IPS Credit Card Gateway and IPS merchant services. 

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 PaydayTM (Payroll Card), Pronto BancoTM and Paga RapidoTM. These products are made available to consumers direct through employers and merchant locations throughout the United States. 

SCN is an authorized reseller of all of PYDS' ACH products, IVR services and Web Pay applications for both credit cards and ACH. PYDS is an authorized distributor of SCN's prepaid card products and SCN licenses bill payment services for their debit cards from PYDS.

Paymerica is a registered ISO/MSP providing innovative and cost- effective payment solutions to a wide variety of merchant types. Paymerica is an authorized reseller of all of PYDS' ACH products, IVR services and Web Pay applications for both credit cards and ACH.

Verus Financial Management, is a leading consolidator of successful payment processors into a ???best practices??? payment services company.  PYDS partners with Verus by utilizing Verus to provide credit card authorization and settlement services through Vital processing Network and sponsorship into Visa??™s ISO and MasterCard??™s MSP programs. 

To view the Payment Data Systems profile in its entirety please visit http://www.smallcapreview.com/pyds.htm

Disclaimer  

SmallCapReview.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. For continuing coverage of PYDS, please sign up for our free newsletter. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for Payment Data Systems. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.