LeSwitch expands to POS transactions

RETHABILE MOHONO

MASERU – In a significant leap towards a fully digital and integrated financial ecosystem, the Central Bank of Lesotho (CBL), in collaboration with the country’s leading banking institutions, has announced the introduction of localized Point of Sale (POS) transactions under the LeSwitch platform.

This development follows the successful localization of ATM transactions in October 2024 and marks another milestone in Lesotho’s journey to modernize its payment systems. Effective since May 11, LeSwitch rolled out its POS functionality as a pilot project, gradually onboarding merchants and customers towards nationwide implementation.

This initiative allows Basotho to transact effortlessly on any POS machine using their debit cards, regardless of their bank, ushering in a new era of convenience, efficiency, and financial inclusion.

LeSwitch project teammate Samuel Koetle of Standard Lesotho Bank highlighted the remarkable journey of this initiative.

He recalled how LeSwitch, formerly known as the National Payment Switch, was first conceptualized in 2016 with a vision to simplify and streamline the movement of money within Lesotho.

That same year, groundwork was completed, paving the way for the transformative change in the country’s financial services sector.

“The journey from concept to implementation has been a progressive one. In 2021, LeSwitch introduced instant payments between banks and mobile money platforms, enabling seamless transactions between services such as Mpesa and Khetsi,” he said.

This momentum continued in 2023 with a focus on domesticating ATM cards, ensuring their functionality within the local banking ecosystem. These efforts culminated in October 2024 with the successful pilot of LeSwitch-enabled ATM transactions, allowing customers to use any bank’s ATM regardless of their card issuer.

By early 2025, Koetle said Lesotho achieved a major milestone when all transactions involving local debit and credit cards were fully facilitated within the country through the LeSwitch system.

The breakthrough eliminated the long-standing barriers faced by consumers and businesses, reducing transaction costs and improving service accessibility.

Last weekend, the project took another significant step forward with the localization of the POS system, a move seen as critical in building a fully digitalized and modern financial infrastructure.

The benefits of LeSwitch’s expansion into POS transactions are numerous. Customers will experience faster transaction processing times, greater convenience, and the ability to use their bank cards at any point-of-sale terminal nationwide.

Processing payments locally will also drive down transaction fees over time, making banking services more affordable for both consumers and businesses. Enhanced security features and real-time transaction processing will further strengthen customer trust in the financial system.

Koetle emphasized that the development is not merely a technological upgrade but a deliberate effort to ensure that every Mosotho, regardless of location, has access to affordable, reliable, and transparent financial services. The localized POS system, much like the ATM localization before it, is expected to significantly boost financial inclusion and stimulate broader economic participation.

Looking ahead, CBL and its banking partners are already preparing for the next phase of the LeSwitch project, which will focus on integrating e-commerce and retail payments.

“The goal is to empower businesses, streamline operations, and drive the digital transformation of Lesotho’s economy. While LeSwitch is designed to optimize domestic transactions, international payments will continue to be processed through global systems like Visa and MasterCard, ensuring a comprehensive suite of payment options for users,” Koetle said.

The modernization of Lesotho’s financial infrastructure, as driven by LeSwitch, demonstrates the power of collaboration between regulators, financial institutions, and technology providers. This joint effort is steadily transforming the country’s financial landscape, bringing Lesotho closer to a cashless society where digital payments are accessible, efficient, and inclusive.

As the LeSwitch POS rollout continues, CBL encourages all Basotho to embrace the convenience and flexibility offered by the new development, which promises to deliver faster, safer, and more affordable banking experiences for individuals and businesses alike.