MANILA - Subscribers of Smart Communications Inc. can now purchase prepaid credit through their bank accounts in Banco De Oro Unibank Inc. (BDO).

The 2 firms signed a deal on Friday to expand their mobile phone banking venture, and are planning to offer electronic reloading services for their broadband and value-added products by the end of the year.

The new service is available to all Smart subscribers aged 13 and above with automated teller machine (ATM) accounts in BDO. They can buy prepaid credit ranging from P30 to P1,000 through BDO's ATM, mobile, or internet banking services.

"We provide the infrastructure needed for the banking industry to expand its services," Smart Wireless Consumer Division Head for Financial Services Jojo Malolos said.

"It's a win-win situation. Smart reduces the cost of servicing its clients (since) it won't have to open a lot of wireless centers. We do the work for them," BDO Senior Vice President for Transaction Banking Ismael Estela Jr. added.

Malolos admitted that most customers in the Philippines still prefer traditional banking channels over electronic banking services. He said, however, that Smart's partnership with BDO may make more room for mobile banking in the country.

"A lot of people are using third party channels to do domestic remittances. This is one area that the banks and Smart can do together," he said.

Smart has recently launched a reloadable international direct dialling (IDD) card which caters specifically to consumers who have logistics problems and those who do not own a mobile phone.

Called "Hellow," the card can be used on any Smart or Talk 'N Text mobile phone, and charges as low as P2.50 per minute.

The Hellow card came after rival Globe Telecom Inc. launched its "IDD Suki" promo, which allows Globe prepaid subscribers to purchase IDD credit in sari-sari stores, groceries, and other load outlets.