New system reduces cost of transferring funds

THE Bank of Papua New Guinea (BPNG) launched the retail electronic payment system (REPS) that will deliver efficiency, security and convenience in the national payment system.
Governor Loi Bakani said yesterday that this would allow the commercial banks and other financial institutions to transfer funds to other banks at a reduced cost.
“You will now be able to use a card that belongs to another bank at any automated teller machines (ATMs) likewise the electronic funds transfer point of sale (Eftpos) machines,” he said.
“At the moment, we have arrangement with the banks where you are charged with some fees.
“If you are a BSP customer and you use Westapc ATM or Eftpos, you will be charged an amount that is agreeable between the two banks.”
Bakani said REPS allowed a BSP customer for instance, to use the same card at either a Westpac or a Kina Bank’s ATM or Eftpos at a reduced cost.
“We have agreed on the cost to be reduced overtime with the banks,” he said.
“Those bilateral arrangements between the banks or financial institutions will finished.
“We’ll go out and everybody will be connected now to the national switch (REPS). Once you are connected to the switch (REPS), it is now possible for all sorts of transactions you can do in any commercial banks or any financial institutions.”
Bakani said the micro banks as well as the savings and loans societies were a significant part of the financial sector.
“They are introducing cards, internet banking and different products that they are working on in future to help customers,” he said.
“This national switch or the REPS will allow them to use any of the machines or systems that other bigger banks have in place.”
Bakani said three financial institutions namely Bank South Pacific, Kina bank and the Nasfund Savings and Loans Society (NCSL) were linked to the retail electronic payment system when it went live last Monday.
“The second phase will involve other micro banks, Westpac and others.”
Bakani said ANZ bank did not fit into the retail electronic payment system because they only dealt with corporate clients given that they have sold their retail business to Kina Bank.