Lae businesses say cheque phaseout needs coordination

THE Lae business community has welcomed the open dialogue it has had with the government and the banking sector on the phasing out of personal cheques.
The Lae Chamber of Commerce and Industry along with the Highland Farmers and Settlers Association in a statement thanked the Bank of PNG and the country’s four major banks for the decision to cease the use of the transactional method but cautioned that the process and implementation required consideration and planning.
The date for cessation of personal cheque use was initially was Dec 31, 2023, however, this was extended to June 30, 2024.
While the chamber and association welcome the move to a digital platform, they warned that people in rural areas lacked access to digital facilities and information on the new process.
Chamber president John Byrne said the Central Bank arranged meetings for businesses with the Kina Bank, ANZ Bank, Bank South Pacific and Westpac.
The outcome was positive with the banks which generally deal with farmers and others who use cheques.
“The key to moving to a digital payment platform generally is having a reliable, broad reaching and cost-effective data service,” he said.
“This will be lobbied with the Government.”
Association president Wilson Thompson urged the banks to conduct an awareness programme on the change.
“Our communities need awareness on a change like this which might seem minimal for our corporate entities or government but for our people is hard to adjust to,” he said.
“Additionally, research on the population who has access to phones is paramount, as we move towards a real digital platform,” Thompson said.