Seabata Mahao
The Central Bank of Lesotho (CBL), in collaboration with the Bankers’ Association of Lesotho (BAL), has marked a significant milestone in Lesotho’s journey toward a fully integrated, modern financial ecosystem with the launch of the LeSwitch Card Stream, starting with Auto Teller Machines (ATMs).
This initiative follows the earlier launch of the National Payment Switch, LeSwitch, and the Instant Payments Stream in March of this year.
This substantial advancement in the modernisation of Lesotho’s payment infrastructure enabled individuals and businesses to transfer funds instantly across participating Fintechs.
The Instant Payments Stream has revolutionised day-to-day transactions, making them more efficient, reliable, and accessible.
“Building on this success, the Central Bank of Lesotho is excited to announce the next phase of LeSwitch: the launch of the Card Stream, beginning with ATM transactions. This development allows cardholders to withdraw and access their funds at ATMs nationwide, regardless of their bank, ensuring seamless, real-time access to their money,” the CBL stated on Wednesday.
The bank emphasised that this development marks another significant step in Lesotho’s journey toward a fully integrated and modern financial ecosystem.
The introduction of the Card Stream, according to the CBL, will offer numerous benefits to consumers, businesses, and the financial sector as a whole.
It will offer seamless ATM Access. “Cardholders will be able to use any ATM in Lesotho, regardless of their bank, providing greater flexibility and convenience.”
CBL added: “Lower Transaction Costs: With domestic ATM transactions being switched locally through LeSwitch, transaction fees are expected to decrease over time, benefiting both consumers and banks.
Other benefits include improved speed and security. Transactions through LeSwitch will be processed quickly and securely, ensuring customers can access their funds without delays or safety concerns.
“Economic Growth and Modernisation: By facilitating instant and cost-effective access to funds, LeSwitch encourages greater participation in the financial system, promotes a cashless society, and contributes to broader economic growth,” CBL said.
It added: “Wider Financial Inclusion: By simplifying access to ATM services and soon enabling point-of-sale and online transactions, LeSwitch empowers more Basotho to engage with formal financial services, including those with previously limited access.”
Furthermore, CBL indicated that while the launch of the Card Stream focuses on ATM transactions, it is committed to expanding this service to point-of-sale terminals and e-commerce platforms in the near future, further enhancing access to fast, secure, and convenient card payments.
“Once fully operational, the Card Stream will support retail payments and online transactions, making it easier for businesses and consumers to transact in an increasingly digital economy,” the CBL noted.
While the National Payment Switch is set to transform the payment landscape, it is essential to clarify its limitations.
“Not a Replacement for Global Card Schemes: LeSwitch will not replace international card schemes like Visa or Mastercard for global transactions. Its focus will remain on domestic payments, allowing local transactions to be processed efficiently within Lesotho,” CBL said.
“Cash Will Not Be Eliminated: While promoting the adoption of cashless transactions, LeSwitch aims to provide more efficient and convenient digital options without mandating a complete shift away from cash usage,” it added.
The bank concluded by highlighting that LeSwitch will not instantly resolve all payment challenges. Its full potential will be realised through ongoing upgrades, collaboration with banks and fintechs, and public awareness initiatives.
