Payment Data Systems Inc (PYDS)

[StockTrader1965]

Lebed.biz Alert May 11th 2008 Part II

I believe we will soon see big profit taking in Visa (V) and MasterCard (MA).

In my opinion, a lot of money that comes out of V and MA will go into undervalued small-cap companies in the industry.

I don't think there is a bigger opportunity in this industry right now with greater upside potential than Payment Data Systems, Inc. (PYDS)!

At only $0.046 with just 81MM shares outstanding, PYDS's current market cap is only $3.7 million!

PYDS processed over $100 million worth of credit card transactions in 2007, which was up 65% over 2006!

I expect PYDS to report HUGE 1Q results this week! We already know that January processing dollar-volume increased 61% over a year ago and February processing dollar-volume was up 53%!

We also know that PYDS recently received $750,000 in cash for the sale of a patent! This will also show up in 1Q results!

Take a look at: http://usa.visa.com/download/merchants/cisp_list_of_cisp_compliant_service_providers.pdf

Not only is PYDS one of only several hundred companies certified by Visa as a Compliant Service Provider... but PYDS is one of only four companies certified by Visa to produce private label debit cards and prepaid gift cards!

PYDS has received this same certification from Mastercard and recently introduced the Natalie Gulbis Mastercard. Natalie Gulbis was recently named one of the top five most marketable young athletes by Advertising Age! PYDS also has their own Carmen Electra Mastercard! Carmen Electra is one of the most famous celebrities in the world!

For more info on PYDS's Natalie Gulbis Mastercard go to: http://www.nataliecard.com
For more info on PYDS's Carmen Electra Mastercard go to: http://www.carmencard.com

http://www.billx.com
PYDS has their own online bill payment portal Billx.com which allows you to pay all of your bills online in one convenient place.

PYDS will soon be introducing their own branded Billx Prepaid MasterCard for both adults and teens which will be integrated with the Billx bill payment processing system. Consumers will be able to load and unload in real-time their Billx Prepaid MasterCards for both their personal use and their children’s use.
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My firm Lebed Biz LLC has been compensated by PYDS $20,000 cash for a one-month investor relations contract. We were previously compensated by PYDS a total of $50,000 cash for past investor relations contracts which have since expired. Never invest into a stock we discuss unless you can afford to lose your entire investment. For our full disclaimer go to: www.lebed.biz/disclaimer.htm

Jonathan Lebed
Lebed.biz
Staff