Fintech & digital payments rules in Papua New Guinea (2026)

The National Payments System Act 2013 (No. 10 of 2013) establishes the legal framework for PNG's payment system, grants BPNG authority to license payment service providers and e-money issuers, and sets rules for payment instruments and consumer protection. Part VI of the Act specifically addresses electronic money.

BPNG maintains a public register of licensed entities (updated as of 31 October 2025) and issues directives—including the Electronic Funds Transfer Directive 02/2019—governing how licensed payment service providers must operate. Non-licensed entities are explicitly prohibited from providing payment services.

PNG operates two central payment rails: KATS (Kina Automated Transfer System, launched 2011) for real-time gross settlement, and REPS (Retail Electronic Payments System, launched 2019) for domestic debit card and retail transactions. REPS had processed over 100.5 million transactions valued at K17.5 billion as of October 2025, with BSP and other banks integrated for interoperability.

BPNG established a Regulatory Sandbox in 2021 to allow licensed institutions, unregulated fintech developers (local and overseas), and non-financial entities to test innovative payment solutions under controlled conditions, before seeking formal authorisation. This is the primary pathway for new fintech entrants rather than a standalone fintech licence category.

BPNG called for public submissions on a comprehensive review of its National Payments Strategy in late 2024 (deadline 31 December 2024), with findings to be reported to the BPNG Board in Q1 2025. The review signals that the existing framework is actively being updated, but revised rules were not yet in force as of early 2026.

BPNG completed a Central Bank Digital Currency (Digital Kina) pilot in partnership with Japan's Soramitsu. No dedicated open banking framework or BNPL-specific regulation has been enacted. The 2024 IMF Financial Sector Stability Review (published December 2024) noted BPNG's payment system modernisation efforts but recommended further strengthening of the policy and supervisory framework.