PAYMENT DATA SYSTEMS, INC. (NASDAQ:PYDS) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

Item 5.02

Appointment of Bradley Rollins to our Board of Directors

On May 5, 2017, our Board of Directors appointed Bradley Rollins
as a member of our Board of Directors. Mr. Rollins will serve as
a member of our Audit, Compensation, and Nominating and Corporate
Governance Committees.

Bradley Rollins is currently the President and CEO of Dahill
Office Technology Corporation, a Xerox company, one of Texass
largest office technology organizations specializing in complete
office automation. Mr. Rollins began his career at Dahill by
joining the companys sales organization in 2000. Quickly
advancing through several specialist and management positions, he
assumed the role of President and CEO in January 2009. Earlier in
his career, Mr. Rollins was a regional sales director for
Tri-State Financial Group, a financial planning firm, for over
eight years. Active in community development, Mr. Rollins is
currently a board member of the United Way of San Antonio and
serves as a regional fundraiser for the MS Society. From January
2014 to January 2015 Mr. Rollins served as a board member for the
San Antonio Regional Development Foundation. From January 2013 to
January 2014 he was the Chairman of the North San Antonio Chamber
of Commerce, where he had been a member since 2008. Mr. Rollins
obtained a business management and mathematics degree from
Western Kentucky University.

In connection with Mr. Rollins appointment, we entered into our
customary independent director agreements with Mr. Rollins. to
the independent director agreement, the terms of his directorship
terminates on the earliest of the following: (a) the death or
disability of the director; (b) the termination of the director
from membership on the board by mutual agreement; (c) the removal
from the board by the majority stockholders of the Company; or
(d) the resignation by the director from the board.

We agreed to pay Mr. Rollins $1,000 for participating in each
quarterly board and committee meeting, including the annual
shareholder meeting. Mr. Rollins will not receive any additional
compensation for ad hoc or preparatory meetings or for being the
chair of a committee, other than the Audit Committee.

Mr. Rollins will also receive 66,667 restricted stock units
convertible into our common stock, and subject to the terms of
our 2015 Equity Incentive Plan. Such units will vest in three
installments: (1) 22,223 on May 1, 2018, (2) 22,222 on May 1,
2019, and (3) 22,222 on May 1, 2020. Unvested units are forfeited
upon termination of the directorship.

There are no arrangements or understandings between Mr. Rollins
and any other persons to which Mr. Rollins was selected as a
director. During fiscal year 2016 we leased office equipment from
Dahill for approximately $7,000.

Forward-Looking Statements Disclaimer

This report contains forward-looking statements. Forward-looking
statements include, but are not limited to, statements that
express our intentions, beliefs, expectations, strategies,
predictions or any other statements related to our future
activities, our planned spin-off, or future events or conditions.
These statements are based on current expectations, estimates and
projections about our business based, in part, on assumptions
made by management. These statements are not guarantees of future
performances and involve risks, uncertainties and assumptions
that are difficult to predict. Therefore, actual outcomes and
results may differ materially from what is expressed or
forecasted in the forward-looking statements due to numerous
factors, including those risks discussed in our Annual Report on
Form 10-K and in other documents that we file from time to time
with the SEC. Any forward-looking statements speak only as of the
date on which they are made, and we do not undertake any
obligation to update any forward-looking statement to reflect
events or circumstances after the date of this report, except as
required by law.

About PAYMENT DATA SYSTEMS, INC. (NASDAQ:PYDS)

Payment Data Systems, Inc. is engaged in the business of processing electronic payments for other companies, including a range of automated clearing house (ACH) processing, credit, prepaid card and debit card-based processing. The Company is an integrated payment solutions provider offering a range of services to merchants, billers, banks, service bureaus, and card issuers. It operates through two operating entities: Payment Data Systems, Inc. and FiCentive, Inc. Payment Data Systems, Inc. provides integrated electronic payment processing services to merchants and businesses, including credit and debit card-based processing services and transaction processing through the ACH network. Its ACH processing services enable merchants or businesses to both disburse and collect funds electronically using e-checks to transfer funds instead of traditional paper checks. The Company provides prepaid card processing services for merchants and consumers through its subsidiary, FiCentive, Inc.

PAYMENT DATA SYSTEMS, INC. (NASDAQ:PYDS) Recent Trading Information

PAYMENT DATA SYSTEMS, INC. (NASDAQ:PYDS) closed its last trading session up +0.01 at 1.52 with 83,505 shares trading hands.