InstaPay Systems, Inc. Planning Integration of its payENKRYPT Solution Into Internet Processing Services, Virtual Terminals and Mobile Point of Sale Products


ATLANTA, May 3, 2004 (PRIMEZONE) -- InstaPay Systems, Inc. (OTCBB:IPYS) announced today that InstaPay and its Kryptosima subsidiary are in discussions with several large transactions processors who have indicated interest in integrating Kryptosima's payENKRYPT service into their payment processing products and services.

Enabling processors with the payENKRYPT solution will allow the implementation of several innovative additions to the processors' payment processing products and services. These discussions help to validate the market value of the platform that InstaPay has developed and demonstrate the versatility of the gateway patent. InstaPay envisions several scenarios:

First, access to payENKRYPT could be integrated into the processors' "virtual terminal" products, thereby adding PIN debit capability. Virtual terminal's are an increasingly popular way to provide payment services to brick-and-mortar merchants. A virtual terminal is transaction-processing software that runs on a merchants PC, eliminating the need for a separate credit card terminal. The use of such virtual terminals reduces merchants' implementation costs and eliminates extra equipment, freeing up valuable counter space at the point of sale.

Second, access to payENKRYPT could be integrated into processors' Internet payment services, thereby adding PIN debit capability for Internet merchants. payENKRYPT is the first and so-far only payment gateway service that enables Internet merchants for PIN debit acceptance. Because PIN-based transactions offer merchants lower fees and much lower fraud and chargeback risk than signature-based transactions, this is a very attractive payment alternative for Internet transaction processing.

Third, access to payENKRYPT could be integrated into processors' "mobile" payment products. These are solutions aimed at mobile merchants such as food delivery, taxis, flea markets, street vendors, in-home sales and repairmen. Currently more than 100,000 Merchants use wireless POS in the US. The mobile POS terminal market is expected to grow to over 10 million devices by 2007. This rapidly growing segment of the transaction processing market is being enabled for card acceptance via a variety of wireless solutions, such as PDAs and cell phones. Integrating payENKRYPT into these solutions will bring these mobile merchants the same advantages of PIN debit acceptance that traditional brick-and-mortar merchants have enjoyed for years.

InstaPay could act as a service provider to processors, who in turn would establish and maintain the merchant relationships. This leveraged business strategy would help InstaPay to grow its business without spending money to build and support a large sales force.

Because of its unique patent-protected capabilities, InstaPay is well-positioned to pursue the market for eCommerce payments. According to US commerce department statistics and other industry estimates, eCommerce reached almost $100 Billion in 2003 and continues to grow at double-digit rates. That figure covers only the USA. The worldwide figure is larger and also growing. (See http://www.census.gov/mrts/www/current.html for current eCommerce statistics)

About InstaPay Systems Inc.

InstaPay's focus is on the implementation of new payment services, such as ATM card payments from home or office. The patented, easy to use Kryptosima system works with any desktop or laptop computer, enabling consumers to conduct secure transactions from any location without fear of identity theft. For additional information, visit www.instapaysystems.com and www.kryptosima.com

Forward-Looking Statements

Statements about the company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and the company's actual results could differ materially from expected results. The company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.


            

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