JetPay® Corporation (“JetPay” or the “Company”) (NASDAQ: “JTPY”), a leading provider of debit and credit card processing, payroll, and prepaid card services, today announced that on December 31, 2014 it had redeemed the $10 million of Secured Convertible Notes (the “Notes”) that were originated when the Company closed its initial business combinations on December 28, 2012. These Notes carried an annual interest rate of 12%.

The Company obtained the funding for the redemption of the Notes through the issuance of 33,333 shares of Series A Preferred, for an aggregate of $10.0 million, to Flexpoint Fund II, L.P. (“Flexpoint”) pursuant to an existing Securities Purchase Agreement detailed in the Company’s Current Report on Form 8-K filed on August 23, 2013. Details on the redemption of the Notes and the Preferred stock issuance are available within the Company’s Form 8-K filed on January 5, 2015.

Bipin C. Shah, Chairman and CEO of JetPay Corporation, stated: “This is another important step in the development of JetPay Corporation.” Mr. Shah further commented, “These transactions free up $1.2 million in annual cash flow, simplify our income statement, strengthen our balance sheet, and provide additional capital for growth. Combined with our recent acquisition of ACI Merchant Systems in November, we believe we are poised to continue our strategic growth plans as we move into 2015.”

About JetPay Corporation

JetPay Corporation, based in Berwyn, PA, is a leading provider of vertically integrated solutions for businesses including card acceptance, processing, payroll, payroll tax filing and other financial transactions. JetPay provides a one vendor solution for payment services, debit and credit card processing, ACH services, and payroll and tax processing needs of businesses throughout the United States. The Company also offers low-cost payment choices for the employees of these businesses to replace costly alternatives. The Company’s vertically aligned services provide customers with convenience and increased revenues by lowering payments-related costs and by designing innovative, customized solutions for Internet, mobile, and cloud-based payments. Please visit www.jetpay.com for more information on what JetPay has to offer or call 866-4JetPay (866-453-8729).

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. JetPay’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside JetPay’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to, those described under the heading “Risk Factors” in the Company’s Annual Report filed with the Securities and Exchange Commission (“SEC”) on Form 10-K for the fiscal year ended December 31, 2013, the Company’s Quarterly Reports on Forms 10-Q and the Company’s Current Reports on Form 8-K.

JetPay cautions that the foregoing list of factors is not exclusive. Additional information concerning these and other risk factors is contained in JetPay’s most recent filings with the Securities and Exchange Commission. All subsequent written and oral forward- looking statements concerning JetPay or other matters and attributable to JetPay or any person acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. JetPay cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. JetPay does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.