BPNG Modernises Payments Mandate
Bank of Papua New Guinea is moving toward strengthening its payments systems as one of its main key mandates.
Speaking at the recent NCSL rebranding launch of BPNG Governor Loi Bakani highlighted that with the first anniversary of the Retail Electronic Payment System (REPS) since it was introduced in July with the second phase of the rollout in the financial sector set to mark the complete modernisation of the payment space.
He said the Bank of PNG continues to progress the process of modernisation and improvements of PNG’s national and international payment system.
The bank is mandated under the Central Banking Act 2000 to ensure this takes place.
The governor highlighted vital investments the bank continues to implement to improve the digital finance ecosystem in the country from a period that saw lagging.
“Had we not moved by updating upgrading our payment system we would be miles backward so I thank some of our people in the bank under my leadership have taken the bold stand to upgrade our payment system, he said.
“Because in terms of the core mandates of the bank, monetary policy we are done, financial
management system we are done, the third objective is payments and we are so backward in that,”
He said the first step to the modernisation came in the form of Kina Automated Transfer System (KATS) which allows settlement of large payment transactions in 2013.
This was followed by the Retail Electronic Payments System (REPS) introduced in 2019 that brought about services such as the growing popular Poro debit card offered by NCSL.
“So the bank has implemented the KATS or first tier financial institutions all the banks are in there.
“In July last year, we moved over to launch the REPS which is an interoperable system that links all commercial banks with other financial institutions, micro banks, and of course savings and loans societies.”
He added the second phase would bring about an even larger segment that includes even non-bank or financial entities entering the payments system such as mobile communication operators providing financial payment platforms.