Beanstream Technology Automates Transit Loyalty Program

LML Subsidiary Streamlines Edmonton Transit System AIR MILES rewards miles Program

VANCOUVER, BC, July 12, 2011 — Beanstream Internet Commerce Inc., a wholly owned subsidiary of LML Payment Systems Inc. (NASDAQ: LMLP), has delivered an innovative AIR MILES® rewards miles solution for City of Edmonton, Edmonton Transit System (ETS). The custom integration of Beanstream’s proprietary shopping cart software now automates online delivery of the ETS AIR MILES® program, making it easier to generate loyalty among transit users purchasing monthly passes or ticket strips online.

The Beanstream solution provides ETS with the tools we need to successfully deliver the AIR MILES® program while almost completely removing the manual process. Qualifying customers can now directly enter their AIR MILES® collector number at checkout and securely receive reward miles sooner thanks to Beanstream technology. Moreover, this upgrade has also increased our flexibility to manage and create new offers, adding further value to our riders,” said ETS Strategic Marketing Supervisor, Nathan Walters.

We take pride in our ability to provide efficient payments solutions that meet the challenges of ever evolving commerce business models. Managing payments has become more than simply processing transactions and moving money. For many businesses, payments have become the foundation of engagement with their customers. Edmonton Transit System came to us with complex requirements to create a bridge between their online payment portal and their rewards incentive program. Our comprehensive payments platform was designed specifically to provide such value-added services. This latest AIR MILES® certification adds yet more value to our already comprehensive suite of products and illustrates our ability to enrich the payment experience for our customers. We are proud to have worked with Edmonton Transit to help them achieve their vision and congratulate them on the launch of the next phase of their program,” said LML President Craig Thomson.

About City of Edmonton, Edmonton Transit System (ETS)

The City of Edmonton is Canada’s 6th largest city, offering all the amenities of a major urban centre plus a family-friendly environment that is safe, stimulating and rich with opportunity. ETS is a fully integrated, progressive, easy-to-use public transit system that supports economic development and improves the quality of life in Edmonton. The ETS infrastructure includes over 6200 bus stops and more than 440 routes.

About LML Payment Systems Inc. (www.lmlpayment.com)

LML Payment Systems Inc., through its Canadian subsidiary Beanstream Internet Commerce Inc., and US subsidiaries Beanstream Internet Commerce Corp (www.beanstream.com) and LML Payment Systems Corp., is a leading provider of financial payment processing solutions for e-commerce and traditional businesses. We provide credit card processing, online debit, electronic funds transfer, automated clearinghouse payment processing and authentication services, along with routing of selected transactions to third party processors and banks for authorization and settlement.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all passages containing verbs such as “aims,” “anticipates,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects” or “targets” or nouns corresponding to such verbs. Forward-looking statements also include any other passages that are primarily relevant to expected future events or that can only be evaluated by events that will occur in the future. Forward-looking statements are based on the opinions and estimates of the management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect the Corporation’s actual results include, among others, the impact, if any, of stock-based compensation charges, the potential failure to establish and maintain strategic relationships, inability to integrate recent and future acquisitions, inability to develop new products or product enhancements on a timely basis, inability to protect our proprietary rights or to operate without infringing the patents and proprietary rights of others, and quarterly and seasonal fluctuations in operating results. More information about factors that potentially could affect the Corporation’s financial results is included in the Corporation’s quarterly reports on Form 10-Q and our most recent annual report on Form 10-K filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Except as required by law, the Corporation undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.

Contact

LML Payment Systems
Patrick H. Gaines - CEO
(604) 689-4440
Investor Relations
(800) 888-2260

City of Edmonton, Edmonton Transit System
Nathan Walters - Strategic Marketing Supervisor
(780) 496-2853