EXHIBIT 23.2

            CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We  consent  to the use of our report dated April 1, 2003, in Amendment No. 2 to
the  Registration Statement (Form SB-2 No. 333-116654) and related Prospectus of
Payment  Data  Systems,  Inc.  for  the registration of 40,000,000 shares of its
common  stock.


/s/ Ernst & Young LLP
Ernst  &  Young  LLP
San  Antonio,  Texas
August  2,  2004