Payment Data Systems, Inc. (OTCBB:PYDS), an integrated electronic payments solutions provider, today announced the company’s operating performance in January and February continued a month-to-month growth trend in 2008.

On an unaudited basis, our credit card processing dollar-volume increased 61% in January from the comparable month one year ago, while the corresponding transaction volume grew 21%. February continued this trend with credit card processing volume up 53%from the comparable month one year ago with the corresponding transaction volume up 20%.

"Payment Data completed the first two months of 2008 continuing with the building of our merchant services transaction and revenue baselines," said Payment Data Systems Chairman and CEO Michael Long. Long continued, “Now that one of our larger customers has fully completed its administrative changes we should see higher transaction growth coming back on line.”