Yes, You get paid in Smart. They actually have a nice calculator on the site so you can calculate how much you will get with an x amount of Smart. The payment is done in the same address where you hold the tokens so if you want to withdrawal you dividend you will lose your smartreward payments for the coming month. That's why I made multiple addresses with 1000+ smart.
The good news is that it is cheap at the moment. When I discovered the coin, the price was €1 so 1000 Smart would set me back €1000 but now the price has dropped. I bought 2000 Smart for just €400. "If" the market bounces back I will make some nice profits from the dividend alone.