The Central Bank of Lesotho (CBL) and local banks this week launched localised Point of Sale (POS) transactions via the LeSwitch platform at Lehakoe Recreation Centre.
This National Payments Switch initiative, spearheaded by the Central Bank of Lesotho in collaboration with First National Bank Lesotho, Lesotho PostBank, Nedbank Lesotho, and Standard Lesotho Bank, aims to enhance convenience and reduce transaction costs for cardholders nationwide.
Speaking at the launch, Samuel Koatla, representing the heads of operations from the participating banks, highlighted the significance of this development.
Koatla noted that LeSwitch, conceptualised in 2016 and with its instant payments stream launched in 2022, is modernising Lesotho’s payment infrastructure. The activation of POS services follows the successful piloting of local ATM transactions between October 2024 and February 2025.
“As we gather here today, I am pleased to announce that on Sunday 11 May, the Central Bank of Lesotho in collaboration with the four commercial banks launched the third iteration of this exciting journey with the introduction of local transactions on Point of Sale (POS) machines,” he said.
He explained that this allows cardholders to use any bank’s POS terminal for seamless, real-time payments, regardless of where their account is held.
The introduction of LeSwitch for card and POS transactions brings several advantages. Cardholders will now have universal access to ATMs and POS terminals across all banks in Lesotho. Transaction fees are expected to decrease over time due to local processing, which bypasses the higher costs associated with international clearing regimes. Furthermore, transactions will be processed more swiftly and securely, enhancing the overall banking experience.
This development is also anticipated to stimulate economic growth by promoting a cashless society and fostering greater financial inclusion for Basotho.
Looking to the future, the Central Bank and the banks are committed to extending LeSwitch services to e-commerce platforms, building on the foundation laid by the ATM and POS channels. This expansion aims to further improve access to fast, secure, and convenient digital payments for both businesses and consumers.
Director of Payment and Settlement at the Central Bank of Lesotho, Mothetsi Sekoati, pointed out the fundamental importance of payment systems for a country’s economic stability.
“Payment systems are crucial foundational components of any country’s economic and stability, as they enable easy transfers of funds between individuals, government, and businesses entities,” he said.
Sekoati indicated that efficient payment systems are essential for smooth financial operations, and central banks globally play a vital role in ensuring their safety and soundness.
While LeSwitch marks a significant advancement, it will not replace international card schemes for overseas transactions or eliminate cash usage entirely. Its success will depend on continuous improvements, collaboration within the financial sector, and public awareness to encourage the adoption of these new digital payment options. The CBL and its partners say they are committed to fostering a secure, inclusive, and future-oriented financial ecosystem through such innovations.
