The Treasury Department Bureau of Fiscal Service is making it easier for feds to go paperless by offering new electronic payment options through PayPal and Dwolla.

The two digital wallets are now available on Pay.gov, allowing agencies to make and receive payments through the secure services. The announcement is part of Fiscal Service's move away from paper transactions to more efficient, cost effective electronic payments.

"Digital wallets provide convenience, simplicity and a trusted customer experience, while achieving cost effectiveness for the federal government," said Corvelli McDaniel, assistant commissioner for revenue collections management at the Fiscal Service. "We are committed to operational excellence and continually improving our business processes; digital wallets help us achieve that goal."

Fiscal Service collected $3.73 trillion in revenue in 2014, with $3.69 trillion (98 percent) processed electronically.