SMART Money has installed a security lock, requiring cardholders to key in a Personal Identification Number (PIN) via their mobile phone to signify that an online purchase transaction has been authorized.

Targeting the “unbanked sector” - the majority of the Philippine populace who have no credit cards, as well as consumers wary of transacting online due to Internet fraud and identity theft, Smart Communications, Inc’s e-wallet service, Smart Money, recently expanded its security feature.

Now, Smart Money installed a security lock, requiring cardholders to key in a Personal Identification Number (PIN) via their mobile phone to signify that an online purchase transaction has been authorized. They also receive SMS notification each time transactions are made on their account.

The e-commerce industry in the Philippines has not completely taken off, according to Anna Marie A. Cruz, SMART Financial Services Domestic Alliance Department Head. Aside from the fact that Filipinos still prefer the physical experiences associated with shopping, comfort level with online transactions have yet to improve as well.

According to the first in-depth study on the Internet habits of Filipinos conducted by Yahoo! and Nielsen in March 2009, only 3% of the total 20 million Internet users in the Philippines, engage in online transactions.

With regards to Smart Money, only 8 percent, or 6 million, of Smart’s 38.5 million subscribers buy online and the volume of transaction is growing at the rate of 5 to 10 per cent.

“We hope to activate all of our 38.5 million subscribers. That’s our immediate target,” she disclosed.

Now, Smart Money users, who do not own a credit card and as young as 12 years old, can have access to over two million MasterCard retail partners found in the Internet and 25 million MasterCard partners all over the world. Users need only have a P300 to P500 minimum to transact.

The average purchase online is P5,000 and Smart Money can service most requirements. A Smart Money card can hold as much as P50,000. Users are entitled to have 2 cards each, or a total balance limit of P100,000.

Smart Money cardholders can withdraw from over 7,000 bank ATM machines all over the country, perform peer-to-peer mobile money transfers and payments, pay utility bills, buy prepaid load and make purchases from millions of MasterCard locations around the world.

“Our alliance with MasterCard, our partnerships with the country’s leading banks, and now, this pioneering safety feature will allow Internet shoppers to manage their cash and account security online,” according to Danilo J. Mojica, SMART Wireless Consumer Division Head. “It empowers account holders, at the same time, gives them peace of mind when buying online.”

“This new, accessible payment channel should also help modify existing market behavior and drive e-commerce activities in the Philippines,” Jojo M. Malolos, SMART Financial Services Head noted.

Smart Money was the first reloadable payment card linked to a mobile phone with a SMART SIM. It combines the strength of SMART's mobile commerce services and MasterCard's wide merchant acceptance network, enabling consumers to enjoy an extensive array of goods and services.

SMART has been at the forefront in promoting mobile commerce services in the Philippines since 2000. Smart Money, the world’s first electronic wallet card linked to a mobile phone, won the 2001 3GSM Award for “Most Innovative GSM Wireless Service for Customers.” It was also cited as the “Best Product Innovation” award at the MasterCard Marketing Awards in Australia.