BSP Financial Group Limited (BSP), in partnership with the Department of Finance has implemented an automated Electronic Funds Transfer (EFT) service that will transform government payments in line with the PNG government strategy to achieve a digital cheque-less economy.

The EFT service, developed in harmony with the PNG Government Medium Term Development Plan IV and the Public Finance Management Act, will replace the use of government cheques with digital platforms that offer real-time secure electronic payments. This means government agencies, suppliers, and contractors can now receive payments faster, more reliably, and with greater visibility on transactions.

BSP Chief Operating Officer, Nuni Kulu said “EFT payments benefit all segments involved in transactions with the government, including consumers, businesses, and communities. The service improves security, efficiency, and speed for both the government and the recipients of its payments.” Timely cashflow cycles improves certainty and confidence in doing business with government,” she added.

Beyond speed and convenience, the EFT service also enhances transparency and accountability in public finance management. Real-time electronic records strengthen auditability and reduce the risk of fraud or human error often associated with manual cheque handling.

Ms Kulu said the initiative aligns with Government’s broader strategy to eliminate the use of cheques and move towards a modern, sustainable, paperless financial ecosystem.

“BSP is proud to support the Government in building a system that benefits everyday Papua New Guineans. Together, we are creating a stronger foundation for financial inclusion, transparency, and better service delivery,” she added.

Delivering digital banking services is BSP’s commitment to advancing financial inclusion when it comes to payments for all segments, Government, Business and our People and Communities.

Department of Finance Secretary Samuel Penias described the MoU as a game changer.

“BSP holds majority of government operating accounts and working together to build a tailored system, enabling fast and efficient payment for goods and services. It goes to the heart of the nation where our people live.

“EFTs payments are faster than paper cheques, ensuring rapid payments, electronic records for audit and compliance, reduce risks of human error and efficient transparency of public services and financial operations. In times of natural disasters, digital payments will assist get money into affected areas. Accelerating EFT, the MOU is a beginning to scaling all forms of government payment, ensuring electronic payment achieves efficiency and automation.” he added.

The MoU signing between BSP and Department of Finance on Thursday 4^th September, will see the Electronic Funds Transfer (EFT) service commence on Monday 8^th September 2025. Department of Finance is piloting this service and eventually extend the service tother government agencies.

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