Over 75,000 food voucher recipients in Botswana have reportedly made smooth digital purchases at local retailers, thanks to a fintech solution implemented by SmartSwitch Botswana.
The system uses biometric-enabled smart cards to enable secure and dignified transactions via Botswana’s Universal Electronic Payment System (UEPS), according to a recent statement from Lesaka Technologies, the company’s parent firm.
Since its launch in Botswana in 2006, SmartSwitch has enabled thousands of food grant beneficiaries to receive funds from local councils and make purchases at local merchants, earning interest on any unspent balances.
Within the first three years of its rollout, the system helped bring approximately 50,000 citizens into the formal financial system.
According to the statement, grant recipients use SmartSwitch biometric payment cards to purchase food at over 1,200 participating shops, with each transaction verified through biometric authentication.
Transactions can also be processed offline using biometric-enabled point-of-sale (POS) terminals.
SmartSwitch was chosen for the project following a tender issued by the Ministry of Local Government, which sought a solution that would give beneficiaries the flexibility to choose their preferred food items, as well as when and where to collect their packages.
France Lassie Mabiletsa, Managing Director of SmartSwitch Botswana, underscored that the element of choice is fundamental to the solution. “Although we applied cutting-edge technology to the challenge, we also knew we needed to create a deeply human solution to address the audience’s needs. We had to provide beneficiaries with choice and restore their dignity.
“We’re not standing still. We’re reinvesting in the system to do more for more people. It is our aim to continue to be a trusted partner to the government, a reliable ally to merchants, and a gateway to dignity, choice, and empowerment for thousands of people in Botswana,” he went on to add.
According to the company, the system was introduced to address a persistent challenge the government faced in distributing food grant payments.
Prior to its implementation, the process was largely manual and paper-based, leading to numerous complaints about inefficiencies and leakages across the grant distribution chain.