SmartSwitch Botswana, a subsidiary of Lesaka Technologies, has been supporting financial inclusion efforts in the country through a fintech solution tailored for food voucher recipients.
Since its establishment in 2006, the company has extended its services to over 75,000 individuals in underserved communities.
The company operates with exclusive rights to implement Botswana’s Universal Electronic Payment System (UEPS), a platform also recognised by the central banks of Namibia, Ghana, and South Africa as a national payment system.
Central to the system is a biometric-enabled smart card designed for people who are unbanked or underbanked.
The card allows beneficiaries to receive, store, and spend funds at authorised retail outlets, while unspent balances accrue interest.
The system was introduced in response to a government tender issued by the Ministry of Local Government, which aimed to replace the existing paper-based food distribution system.
The previous model had faced criticism due to inefficiencies, limited consumer choice, and associated stigma.
The tender aimed to provide recipients with more flexibility in choosing the type of food they purchased, as well as when and where they accessed it.
It also sought to establish a more discreet and respectful method of distribution.
“Although we applied cutting-edge technology to the challenge, we also knew we needed to create a deeply human solution to address the audience’s needs,” said France Mabiletsa, Managing Director of SmartSwitch Botswana.
“We had to provide beneficiaries with choice and restore their dignity.”
Under the new system, recipients receive a monthly allowance on a SmartSwitch card, which can be used at more than 1,200 local shops.
Transactions are authorised using biometric verification. The card is visually similar to a standard debit card, helping ensure privacy.
Within three years of the system’s rollout, over 50,000 individuals, many of whom had not previously interacted with formal financial services, had been brought into the financial system.
The number has since grown to over 75,000.
The platform also supports offline transactions through biometric point-of-sale devices.
Merchants have also seen operational benefits, including faster settlement times, usually within 48 hours, and increased customer traffic.
As the government considers the next phase of the programme, SmartSwitch has outlined plans to introduce new services and upgraded devices to support both users and retailers.
“We’re not standing still. We’re reinvesting in the system to do more for more people,” Mabiletsa said.
“It is our aim to continue to be a trusted partner to the government, a reliable ally to merchants, and a gateway to dignity, choice, and empowerment for thousands of people in Botswana.”
Source: Fintechnews Africa
