Alex D. Ibasco, New Business Group head, Wireless Consumer Division of Smart, explains that Smart Money "is different because it uniquely combines the power of the debit card, the Smart phone and the Web. This means you can get your balances, make payments, transfers, pay bills and buy airtime  all from your phone. All these while enjoying the ability to use the card at a merchant point of sale or withdraw from ATMs. Beyond this, it provides the comfort of transaction notifications and the security of locking the card at anytime. Take note that Smart Money is a joint bank-telco product, so it formally conforms to all regulatory requirements of the Central Bank."
Smart Money already packs such great features and now the Paypass version has become even better. How does it work? The card and the Paypass reader communicate the payment details wirelessly (the card has an antenna embedded inside), using short-range radio waves (the Smart Money Paypass ATM card must be within 1.5 inches of the Paypass terminal to be read). The details are then processed through the secure MasterCard acceptance network, and then the transaction is approved (or disapproved if you don’t have enough money in your card, of course). It eliminates the need for you to hand over the card to a merchant to swipe through a reader, so you don’t worry about whether your card is secure with a particular cashier. It never leaves your hand and you do not have to wait for change. But like any transaction, the merchant issues you a receipt for your purchase.
If the merchant, however, does not have a Paypass reader, you can still use your card because it has a magnetic stripe at the back, which can be swiped on a point of sale terminal (what they use for credit cards)  or you can just run to an ATM if the merchant does not accept plastic.
The Smart Money Paypass may be the quickest, easiest payment method available, saving the consumer time and giving him a sense of control over his card’s security. Just tap it on the reader and go. That’s it. No signature, no PIN needed.
Smart’s partner bank Banco de Oro has already rolled out close to 800 terminals in quick-service merchants such as coffee shops, SM Cinemas, SM Hypermarket, and SM Mall of Asia, among others.
Ibasco says that there are currently four million Smart Money users in the Philippines. He predicts that "over the next five years, doubling this figure to support migrant populations is quite feasible."
The goal is to eventually make Smart Money Paypass an everyday card  for fare, food, and small purchases at the corner store. The question in everybody’s mind is: when are we going to see it in our public transportation systems? Will we soon be tapping our way to work via the MRT/LRT, buses and jeepneys? Ibasco is optimistic. The year 2007 heralds the pervasive use of Smart Money bank cards for the transport industry."
Even their partner bank sees a bright future for this new mode of payment. "Smart is actually the company that has the capability to do it. Later on, you don’t even have to have a card to use Paypass  it can be incorporated into the phone." (In fact, MasterCard pilot tested this card-less Paypass in the US with Nokia, At&T and JP Morgan Chase in 2003, incorporating Paypass into mobile phones, and consumers simply tapped their phones  instead of their card  to make payments.)
How do you apply for a Paypass? If you do not have a Smart Money account yet, all you have to do is activate your account using your Smart SIM. Once the account is activated, you can apply for a personalized Smart Money Paypass. If you already have a Smart Money account and card, you have the option to replace with the new card  just go a Smart Wireless Center and ask for a replacement of your old Smart Money ATM card. [You can call their hotline at 845-7777 (landline) or 15177 (cell phone).] As with any ATM card, if you lose your Paypass, call the hotline to report the loss and transactions using the card before it was reported lost will be deemed valid and authorized by the cardholder.
Widely used in the US, Japan, Taiwan and Malaysia, there are currently 10 million Paypass cards and devices issued to consumers and 32,000 merchant locations using Paypass globally.
You can withdraw cash with it from over one million Cirrus Maestro ATMs in 120 countries and from over 4,500 BDO, Expressnet and Megalink ATMs. It’s accepted in millions of Maestro and MasterCard merchant locations worldwide, at over 10,000 BDO and EPS merchants.
As with any new product on the market, the main challenge, according to Ibasco, is propagating the card and educating the public on its advantages. "Once understood, Smart Money Paypass is a delightful service to use."