SAN ANTONIO, Texas, Dec. 20 /PRNewswire-FirstCall/ -- SmartCard Marketing Systems Inc. (Pink Sheets: SMKG) (Frankfurt: QYH) a leading provider of prepaid cards, stored value cards and Money remittance services, is pleased to announce entering into an Independent Sales Agreement with Payment Data Systems, Inc. of San Antonio, TX (OTC:PYDS) (BULLETIN BOARD: PYDS) , a leading integrated electronic payments solutions provider, to market payment processing services. SmartCard President Bruce Baillio said, "Expanding our marketing relationship with Payment Data will allow SmartCard to provide more comprehensive payment solutions to our customers. We want to be a one-stop provider of all types of financial transaction processing ... from prepaid debit cards and worldwide remittance processing to merchant payment processing. We have been impressed with the experience and commitment to great customer service we have seen at Payment Data." This agreement is an expansion from the initial private label, open-loop debit card agreement between the two companies signed in March 2007. The first card program, a corporate promotion card for incentives, premiums and loyalty reward distribution, was successfully launched in September 2007. Revenue from this card program will significantly impact SmartCard's financial performance in the last quarter of 2007 as the card program begins to penetrate its target market." "We are excited to increase our involvement with SmartCard Marketing Systems. They have a proven ability to market on a national and international basis. This new agreement fits well with our strategy to increase our payment processing portfolio through increased sales and through acquisitions." said Louis Hoch, Payment Data Systems' President and COO. Mr. Hoch continued, "The combination of SmartCard's marketing prowess and our payment processing experience creates a unique value proposition for prospective customers." SmartCard has established a solid portfolio of prepaid programs and many of these clients also need merchant processing services. "The addition of Payment Data's payment processing services to our product and service mix will strengthen SmartCard's position as a complete financial services provider." Mr. Baillio stated. About Payment Data Systems, Inc. Payment Data Systems is an integrated payment solutions provider to merchants and billers. The organization provides an extensive set of products to deliver world-class payment acceptance. Payment Data has solutions for merchants, billers, banks, service bureaus and card issuers. The strength of the company is its ability to offer specifically tailored solutions for card issuance, payment acceptance and bill payments. 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 Systems Inc. (OTC:PYDS) (BULLETIN BOARD: PYDS) is a registered ISO/MSP of MetaBank. 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 http://www.paymentdata.com/. Contact Michael Long for Investor Relations information at 210.249.4040 or email at . We seek safe harbor DATASOURCE: SmartCard Marketing Systems Inc. CONTACT: SmartCard Marketing Systems Inc., , 1-866-774-2555; or Investors, Michael Long of Payment Data Systems, Inc., +1-210-249-4040, Web site: http://www.gosmartcard.com/ http://www.paymentdata.com/

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