The BSP Financial Group Limited (BSP) and the Department of Finance have teamed up ensure the smooth flow of government payments through a Memorandum of Understanding (MoU) signed on Thursday 4^th September, as the country prepares to mark its 50^th years of independence very soon. 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 Papua New Guinea (PNG) National Government strategy to achieve a digital cheque-less economy. 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 said. 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. 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. Meanwhile, 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.” “EFT’s payments are faster than paper cheques. 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 in Port Moresby city will see the EFT service commence tomorrow, Monday 8^th September 2025. Department of Finance is piloting this service and eventually will extend the service to other government agencies.