FiCentive, Inc. Unveils New Corporate Brand

Business Wire, August 26, 2008

SAN ANTONIO -- FiCentive, Inc., a wholly-owned subsidiary of Payment Data Systems, Inc. (OTCBB: PYDS) an integrated electronic payments solutions provider, announced today that it has launched its new corporate brand and associated website at www.ficentive.com.

FiCentive is focused solely on the 6.5 trillion dollar global prepaid and gift card industry.

Michael Long, Payment Data's CEO said, "We are very excited about this new website as it takes one of the first steps of distinguishing FiCentive as a separate company. Furthermore, the site serves as a great facility for educating prospective customers about the application of prepaid and gift card programs within their companies. This exposure will highlight the full range of custom solutions FiCentive is capable of delivering to the marketplace today. We anticipate we will also be doing similar releases for Zbill, another wholly-owned subsidiary, as well as refreshing the current PDS website."

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.nataliecard.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.

About FiCentive, Inc.

FiCentive, Inc. is a turn-key prepaid card solutions provider that quickly and securely delivers customized prepaid card programs for corporations, financial institutions, affinity groups or any organization that needs to deliver a financial incentive to their customers, vendors, or employees. With the global prepaid market to be more than 6.5 trillion dollars, FiCentive is well positioned to capture its share.

For more information about FiCentive, please visit www.ficentive.com or email info@ficentive.com.

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