Lungile Maseela
In a significant leap towards modernising Lesotho’s financial sector, the Central Bank of Lesotho (CBL) has introduced local transactions on Point of Sale (POS) machines, allowing cardholders to make payments at any merchant, regardless of their bank.
“This development enables cardholders to swipe their cards at any merchant using any POS device available, ensuring seamless, real-time payments for goods and services,” said Samuel Koatla, Chairman of the Banking Sector Operations Committee.
Koatla said this milestone is part of the broader implementation of the National Payments Switch, commonly known as LeSwitch, which aims to create a fully integrated and modern financial ecosystem in Lesotho.
The LeSwitch project began in 2016, with its conceptualisation phase concluding in 2021. It features two main components: instant payments and a card stream. The instant payments system, allowing individuals and businesses to instantly transfer funds across mobile networks, was successfully rolled out in 2022.
In 2023, the CBL began implementing the card stream in two phases: ATM and POS. The ATM phase was piloted between October 2024 and February 2025, enabling Basotho to withdraw cash from any ATM in the country at a reduced cost.
Speaking on the benefits of the LeSwitch card and POS system, Koatla said the cardholders will be able to use any ATM and POS terminals in Lesotho, regardless of their bank, allowing greater flexibility and convenience.
“With the switching of domestic ATM and POS transactions happening locally through LeSwitch, transaction fees are expected to reduce over time, benefiting both consumers and banks. This is because the previous international clearing regime exposed banks to high costs, which in turn they transferred to consumers,” he said.
He also mentioned that transactions through LeSwitch will be processed quickly and securely, ensuring that customers can access their funds without delays or concerns over safety.
“By enabling instant and cost-effective access to funds, LeSwitch fosters greater participation in the financial system, promoting cashless society and contributing to broader economic growth,” he said.
The official launch of the system took place at the Lehakoe Recreation and Cultural Centre, attended by senior financial sector leaders. These included the Chairman of Banking Sector Operations and the Head of Payments and Settlements at the CBL, as well as senior officials from the four commercial banks involved in the project.
The participating banks: First National Bank Lesotho, Lesotho PostBank, Nedbank Lesotho, and Standard Lesotho Bank worked together on the platform. Their joint effort shows a shared commitment to driving digital change in the country’s banking industry.
One of the most important features of LeSwitch is that any bank card can now be used at any POS machine in Lesotho, regardless of which bank issued it. This means customers no longer have to ask whether a store’s card machine will accept their bank card.
For Mothetsi Sekoati, Head of Payments and Settlements at CBL, the project shows what can be achieved when financial institutions work together. He praised the collaboration between the central bank and commercial banks in building a system that puts the needs of Basotho first.
“This platform is a clear demonstration of how our financial sector can come together to build something truly impactful,” he said, adding that this approach helps ensure no one is left behind in the digital shift,” Sekoati said.
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