Value of ‘swiping’ doubles in post-cheque era

Bank of Botswana figures released recently indicate that after the phasing out of cheques on December 31 last year, digital transactions in the economy have exploded. In the first quarter of the year, the value of swiping transactions reached P21.5 billion from P15.8 billion in the last quarter of 2023.

In the second quarter of the year, the transactions rose to P32.3 billion, an increase of more than 50% from the first quarter. The number of swiping machines has also increased since cheques were phased out, reaching 16,462 at the end of June, from 6,915 on June 30 last year. While the numbers suggest a digitisation of the local economy, other figures from the Financial Intelligence Agency (FIA) indicate that cash continues to be king for some sectors.

Last year, FIA shared data showing that cash transaction reports – or those involving amounts of P10,000 and above – jumped to P61.7 billion in the 2022–2023 financial year, from P25.5 billion in the prior year. By way of context, the cash transaction reports were measured at just P7.9 billion six years ago. Cash is the preferred payment method for illicit financial activities, which include money laundering, as it bypasses checks and balances at institutions such as banks and is more difficult to trace for authorities.