EXHIBIT 99.1

iPayment Inc.

FOR IMMEDIATE RELEASE                          Contact: Clay Whitson
                                                        Chief Financial Officer
                                                        (615) 665-1858, Ext. 100

                    iPAYMENT REPORTS SECOND-QUARTER RESULTS

             Announces Acquisition of Card Payment Solutions, Inc.

NASHVILLE,  Tennessee - (August 6, 2003) - iPayment,  Inc. (Nasdaq:  IPMT) today
announced financial results for the second quarter and six months ended June 30,
2003.  For the second  quarter,  revenues  increased  152% to  $54,308,000  from
$21,540,000  for the second  quarter of 2002.  Income  from  operations  for the
quarter  increased to  $5,534,000  or 10.2% of revenues from $871,000 or 4.0% of
revenues for the second quarter of 2002. The Company had a net loss allocable to
common shareholders for the second quarter of 2003 of ($796,000), or ($0.06) per
diluted  share,   which  included  a  non-cash  pre-tax  charge  of  $4,437,000,
recognized as interest expense,  due to the acceleration of amortization of debt
warrant  discounts as a result of early repayment of debt with proceeds from the
initial public offering.  For the second quarter of 2002, the net loss allocable
to common shareholders was ($953,000), or ($0.21) per diluted share.

Commenting on the announcement,  Gregory S. Daily,  Chairman and Chief Executive
Officer of iPayment,  said, "As a newly public  company,  we are proud to report
continued  growth in revenues and operating  income in the second  quarter.  Our
focus on treating the ISO as our first customer  continues to stimulate  growth,
with charge volume  increasing to $1.556 billion in the second quarter from $415
million in the second quarter of 2002. We have successfully integrated the three
significant  acquisitions  we completed last fall, and continue to be encouraged
by their ongoing  growth.  Looking  forward,  we are confident in our ability to
execute  our  growth   strategy  both  from  our  ISO  channel  and   additional
acquisitions  in the highly  fragmented  smallmerchant  segment  of the  payment
processing industry.

"Yesterday we closed the acquisition of Card Payment  Solutions,  Inc. (CPS), an
ISO with a portfolio of over 4,000 small  merchants  and annual charge volume of
approximately  $400 million.  The purchase price was  approximately $16 million,
consisting  of  $12  million  cash,  approximately  $3  million  stock  and  the
assumption of approximately $1 million of debt, plus a contingent  payment based
upon  performance up to a maximum $3 million.  We are pleased to announce CPS as
our first  transaction as a public company because it contains  several elements
we  find  attractive  in the  ISO  field.  We  are  gaining  an  entrepreneurial
management  team  with a proven  marketing  approach  generating  over 300 small
merchants  per  month.   We  currently   expect  the   transaction   to  provide
approximately  $0.04 in accretion  to our  earnings per diluted  share in fiscal
2004."

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IPMT Reports Second-Quarter Results
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August 6, 2003

Outlook

The following  statements  summarize the Company's guidance for long-term growth
in revenues and expansion in its operating  margin, as well as specific guidance
for fiscal 2003 and 2004.

The Company's long-term goal for annual growth in revenues remains 20%, with 10%
to 15% growth excluding  acquisitions.  The Company reiterates its target annual
range  for  its  operating  margin  of  10% to 15%  of  revenues,  with  gradual
improvement  each year. As in the past, the operating  margin may fluctuate on a
quarterly basis, and the percentage may change as a result of acquisitions  with
higher or lower operating margins than the Company's margins.

For fiscal 2003,  the Company is currently  comfortable  with a range for annual
revenues of $205 million to $215 million, including the CPS acquisition,  and an
operating margin of approximately 11.5% to 12.5%.

For the second half of 2003, the Company  currently expects net interest expense
of approximately $200,000 per quarter, an effective tax rate of 30% or less, and
approximately   18.0  million  diluted  weighted  average  shares   outstanding,
including  663,000 share  equivalents  from outstanding  convertible  promissory
notes.

For fiscal 2004,  the Company is currently  comfortable  with a range for annual
revenues of $235  million to $250  million and a range for diluted  earnings per
share of $1.00 to $1.06,  including  approximately  $0.04 accretion from the CPS
acquisition.

Conference Call

Information  The Company  will host a  conference  call to discuss  this release
tomorrow at 10:30 a.m. Eastern time.  Participants  will have the opportunity to
listen to the conference call over the Internet by going to  www.ipaymentinc.com
or  www.companyboardroom.com.  Participants are encouraged to go to the selected
web sites at least 15 minutes  early to  register,  download,  and  install  any
necessary audio software.  The online replay will be available at  approximately
1:30 p.m.  (Eastern  Time) and continue  for 30 days. A telephone  replay of the
call  will  also  be  available   through  August  14,  2003,  at   719-457-0820
(Confirmation Number 141993).

This press release  contains  forward-looking  statements  about iPayment,  Inc.
within the meaning of Section 27A of the  Securities Act of 1933 and Section 21E
of the  Securities  Exchange  Act of 1934,  and  pursuant  to the "safe  harbor"
provisions of the Private Securities Litigation Reform Act of 1995. For example,
statements  in the  future  tense,  words  such as  "anticipates,"  "estimates,"
"expects,"  "intends,"  "plans,"  "believes,"  and words  and  terms of  similar
substance used in connection with any discussion of future results,  performance
or achievements identify such forward-looking statements.  Those forward-looking
statements  involve  risks and  uncertainties  and are not  guarantees of future
results,  performance  or  achievements,  and  actual  results,  performance  or
achievements  could differ materially from our current  expectations as a result
of numerous factors,  including but not limited to the following:  acquisitions;
liability  for  merchant   chargebacks;   restrictive  covenants  governing  our
indebtedness; actions taken by our

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IPMT Reports Second-Quarter Results
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August 6, 2003

bank  sponsors;  migration  of merchant  portfolios  to new bank  sponsors;  our
reliance on card payment  processors  and on  independent  sales  organizations;
changes in interchange  fees; risks associated with the unauthorized  disclosure
of  data;  imposition  of  taxes  on  Internet  transactions;   actions  by  our
competitors;  and risks  related to the  integration  of companies  and merchant
portfolios we have acquired or may acquire. These and other risks are more fully
disclosed  in the  registration  statement  on Form S-1 for our  initial  public
offering filed with the U.S. Securities and Exchange Commission. We undertake no
obligation  to revise  or  update  any  forward-looking  statements  in order to
reflect events or circumstances that may arise after the date of this release.

iPayment,  Inc. is a provider of credit and debit card-based  payment processing
services to over 66,000 small  merchants  across the United  States.  iPayment's
payment  processing  services  enable  merchants  to  process  both  traditional
card-present,   or   "swipe,"   transactions,   as  well   as   card-not-present
transactions,  including  transactions  over the  internet  or by  mail,  fax or
telephone.

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IPMT Reports Second-Quarter Results
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August 6, 2003

<TABLE>
<CAPTION>
                                                         iPayment, Inc.
                                                 Unaudited Financial Highlights
                                        (In thousands, except share and per share data)

Consolidated Statements of Income                             Three months ended June 30,             Six months ended June 30,
                                                              ---------------------------             -------------------------
                                                                2003                2002                 2003            2001
                                                              --------            --------            ---------        --------
<S>                                                           <C>                 <C>                 <C>              <C>
Revenues                                                      $54,308             $21,540             $100,983         $38,019

Interchange                                                    28,336               7,637               52,346          14,343
Other costs of services                                        18,529              11,631               34,806          19,592
Selling, general and administrative                             1,909               1,401                3,738           2,570
                                                              --------            --------            ---------        --------
  Total operating expenses                                     48,774              20,669               90,890          36,505
                                                              --------            --------            ---------        --------
Income from operations                                          5,534                 871               10,093           1,514
Interest expense, net                                           6,366               1,305                9,656           2,511
                                                              --------            --------            ---------        --------
Income before income taxes                                       (832)               (434)                 437            (997)
Income tax provision (benefit)                                   (250)                155                  131             310
                                                              --------            --------            ---------        --------
Net income (loss)                                                (582)               (589)                 306          (1,307)
Accretion of mandatorily redeemable convertible preferred
stock                                                            (214)               (364)                (652)           (703)
                                                              --------            --------            ---------        --------
Net loss allocable to common shareholders                     $  (796)            $  (953)            $   (346)        $(2,010)
                                                              ========            ========            =========        ========


Loss per share
  Basic                                                       $ (0.06)            $ (0.21)            $  (0.04)        $ (0.45)
  Diluted                                                     $ (0.06)            $ (0.21)            $  (0.04)        $ (0.45)
Weighted average shares outstanding
  Basic                                                        12,383               4,480                9,870           4,480
  Diluted (1)                                                  12,383               4,480                9,870           4,480

(1) Excludes weighted average common share equivalents for all periods because
of net losses allocable to common shareholders. For the second quarter of 2003,
weighted average common share equivalents were 1,208,671.

Percentages of Revenues
Interchange                                                     52.2%               35.5%                51.8%           37.7%
Other costs of services                                         34.1%               54.0%                34.5%           51.5%
Selling, general, and administrative                             3.5%                6.5%                 3.7%            6.8%
Income from operations                                          10.2%                4.0%                10.0%            4.0%
</TABLE>

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<TABLE>
<CAPTION>
                                                     iPayment, Inc.
                                               Consolidated Balance Sheets
                                                     (In thousands)

                                                                                  June 30,                  December 31,
Assets                                                                              2003                        2002
                                                                                -----------                 ------------
                                                                                (Unaudited)

<S>                                                                              <C>                          <C>
Cash and cash equivalents                                                        $ 25,260                     $  1,831
Accounts receivable, net                                                            9,152                        6,687
Prepaid expenses and other                                                          1,807                        1,287
                                                                                 ---------                    ---------
  Total current assets                                                             36,219                        9,805

Restricted cash                                                                     4,719                        3,070
Property and equipment, net                                                         1,679                        1,610
Intangible assets, net                                                             28,796                       31,758
Goodwill, net                                                                      59,969                       60,790
Other assets                                                                        6,744                        9,948
                                                                                 ---------                    ---------
Total assets                                                                     $138,126                     $116,981
                                                                                 =========                    ==========

Liabilities and stockholders' equity Reserve for merchant losses                 $  3,291                     $  4,411
Accounts payable and accrued expenses                                               7,900                       12,192
Current portion of long-term debt                                                   5,056                        7,383
                                                                                 ---------                    ---------
  Total current liabilities                                                        16,247                       23,986

Long-term debt                                                                     15,286                       70,688
Other liabilities                                                                   1,175                        2,118
                                                                                 ---------                    ---------
  Total liabilities                                                                32,708                       96,792
                                                                                 ---------                    ---------

Mandatorily redeemable convertible preferred stock                                      -                        6,670

Common stock                                                                      121,956                       29,736
Accumulated deficit                                                               (16,538)                     (16,217)
                                                                                 ---------                    ---------
  Total stockholders' equity                                                      105,418                       13,519
                                                                                 ---------                    ---------
Total liabilities and stockholders' equity                                       $138,126                     $116,981
                                                                                 =========                    =========
</TABLE>

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<TABLE>
<CAPTION>
                                                  iPayment, Inc.
                                       Consolidated Statement of Cash Flows
                                                  (In thousands)
                                                    (Unaudited)

                                                                                                   Six Months Ended June 30,
                                                                                                   ---------------------------
                                                                                                     2003              2002
                                                                                                   ---------         ---------
<S>                                                                                                <C>               <C>
Cash flows from operating activities:
  Net income (loss)                                                                                $    306          $ (1,307)
  Depreciation and amortization                                                                       3,925             2,387
  Noncash interest expense                                                                            6,366               414
  Changes in assets and liabilities:
    Accounts receivable                                                                              (2,465)           (1,344)
    Prepaid expenses and other current assets                                                          (520)              495
    Other assets                                                                                      2,785            (1,636)
    Reserve for merchant losses, accounts payable and accrued liabilities                            (3,754)            3,009
    Other liabilities                                                                                    13                55
                                                                                                   ---------         ---------
  Net cash provided by operating activities                                                           6,656             2,073
                                                                                                   ---------         ---------

Cash flows from investing activities:
  Changes in restricted cash                                                                         (1,649)             (600)
  Expenditures for property and equipment                                                              (380)             (126)
  Acquisitions of businesses, portfolios and other                                                     (234)            1,320
  Deferred payment for acquisition of business                                                       (2,099)               -
                                                                                                   ---------         ---------
  Net cash (used) provided by investing activities                                                   (4,362)              594
                                                                                                   ---------         ---------

Cash flows from financing activities:
  Repayments of debt                                                                                (53,728)           (2,610)
  Net borrowings on line of credit                                                                   (1,050)               36
  Proceeds from issuance of common stock                                                             75,913                 -
                                                                                                   ---------         ---------
  Net cash provided (used) by financing activities                                                   21,135            (2,574)
                                                                                                   ---------         ---------

Net increase in cash                                                                                 23,429                93
Cash at beginning of period                                                                           1,831               290
                                                                                                   ---------         ---------

Cash at end of period                                                                              $ 25,260          $    383
                                                                                                   =========         =========

Supplemental disclosure of cash flow information:
  Cash paid during the period for income taxes                                                     $     57          $     34
  Cash paid during the period for interest                                                         $  3,262          $  2,454

Supplemental disclosure of noncash investing and financing activities:
  Accretion of mandatorily redeemable convertible preferred stock                                  $    652          $    703
  Conversion of debt to common stock                                                               $  9,000          $      -
  Conversion of convertible preferred stock to common stock                                        $  7,322          $      -
</TABLE>

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