Gaborone – SmartSwitch Botswana is burning the path of financial inclusion with financial technology (FinTech) solutions, leaving dignity and financial services in the hands of food voucher beneficiaries.
Since its founding in 2006, Smart Switch has grown its footprint to over 75,000 beneficiaries in underserved communities across Botswana.
SmartSwitch Botswana, a subsidiary of Lesaka Technologies, was established with exclusive rights to deploy Botswana's Universal Electronic Payment System (UEPS).
UEPS is also accepted and approved by central banks of countries such as Namibia, Ghana and South Africa as a payment system for accredited countries.
At the heart of the offering is a secure, biometric smart card platform designed for bankless banks.
The system allows food subsidy recipients to safely receive, store and spend with local merchants, whilst earning interest on unprecedented balances.
The solution was developed in response to local government ministry of bidding to overhaul Botswana's paper-based food basket system.
Previous systems were marked by inefficiency, lack of choice and social stigma, but they were failing those that were meant to help.
The bid had two main goals.
First, the Ministry of Local Government wanted to strengthen the beneficiaries' choice of food they acquired, when they could gather their food, and where they could gather their food.
The second objective was to provide a dignified alternative to stigma associated with previous systems.
“We applied cutting edge technology to our challenges, but we also knew we needed to create deep human solutions to address the needs of our audience,” says France Mavilessa, managing director of SmartSwitch Botswana.
“We had to provide the beneficiaries with options and restore dignity.”
Today, these goals are exceeded.
Beneficiaries no longer need to queue in the sun in a wheelbarrow to collect pre-packaged goods.
Beneficiaries receive monthly allowances on SmartSwitch cards that can be used at one or more local stores, from general dealers to corner stores.
Each transaction is authenticated through biometric authentication to ensure security and privacy.
Cards look like bank-issued debit cards, so it is not clear that they are beneficiaries of food allowances.
Over 50,000 people, many of whom were never involved with financial institutions, were integrated into the Botswana financial ecosystem in the first three years after it was implemented.
Today, over 75,000 beneficiaries have access to these smart banking tools. This includes secure, offline-enabled transactions through biometrically enabled POS devices.
Solutions are equally transformative for merchants. Payments will be resolved within 48 hours, improving liquidity.
Competition between stores improves service quality and benefits end users.
“This system has helped our business grow. We serve more customers and get paid quickly and safely,” said Kennete Mmusinyane of OBED supermarket in Gumare, Okavango district.
With a proven track record of trustworthy delivery and innovation, SmartSwitch is gearing up for the next phase of development.
With the government preparing to issue new bids, SmartSwitch has plans to introduce enhanced services and upgraded devices to further support beneficiaries and retailers.
“We're not standing still. We're reinvesting in our system to do more for more people,” says Mabiressa.
“Our aim is to remain a trusted partner of the government, a trusted ally to merchants and a gateway to the dignity, choice and empowerment of the thousands of people in Botswana.”
SmartSwitch is a member of Lesaka Technologies (https://lesakatech.com/).
