Popular Local Payment Methods and Solutions in Botswana

For reasons you may know, payment here has long been cash-based in Bots — simple, practical and trusted. Take a walk through the markets in Gaborone or visit a roadside vendor in Francistown, and you are still likely to spot pula notes changing hands. But beneath the surface, a transformation has been taking place quietly.

The increase in mobile penetration, urban digitalisation, regulatory loosening and fintech innovation has started the permanent shift in how Batswana save, spend and send money. The need for faster, safer and more convenient ways to pay is going mainstream – from the young entrepreneurs selling their crafts online to salaried employees receiving cross-border payments.

Traditional Methods of Payment

Taking precedence over the rising tide of digitisation, cash remains king in Botswana’s economy. It is common in rural areas, open-air markets, and in older age groups. From 2011 to 2023, cash usage increased by more than 100% — an unusual figure in the world of increasingly cashless transactions.

The currency is the Botswanan pula, denoted as BWP and with notes available in P10, P20, P50, P100 and P200 denominations; the coins are in denominations of 5 thebe, 10 thebe, 25 thebe, 50 thebe and P1. Common denominations Public transport drivers and even many jeepney passengers keep of bills of this denomination, as demand for lower denomination bills and coins is high due to gradual inflation.

Cash remains essential in:

Public transport and taxis
Informal trade
Tipping and rural shopping
Crises in which digital systems don’t work

But the tangible nature of cash brings trade-offs: a safe place to store it, the inconvenience of carrying it around and, outside of the process of buying something, absolutely no transaction record or side support for all the newfangled digital services that have sprung up in the past few decades.

Card Payments & Banking Network

Even in Botswana, card payments are prevalent in the urban areas, among salaried workers, between businesses and also for tourists. Visa and Mastercard are hugely popular, and are supported by large banks like FNB, ABSA, Stanbic and Standard Chartered. Debit and prepaid travel cards enjoy wide use for domestic purchases, but credit cards remain underutilised because of fees and trust issues.

Banking infrastructure is quite developed compared to other African nations. Banjaare Kinki "Khar" Hi, Good question, I know almost every large city also the EFTPOS & ATM & an online banking thingayah. BISS (Botswana Interbank Settlement System) is used for high-value interbank fund transfers , and BACH (Botswana Automated Clearing House) is used for bulk payments, including salaries.

Still, limitations persist:

Withdrawal limits at ATMs
High costs of cross-border transactions .
Time lag in payments outside India
Poor card penetration in the hinterlands

These deficiencies underscore the critical role of improved digital and cross-border systems, particularly for small businesses, gig workers and service exporters.

Also read: Payment API Explained: How to Connect a Payment Gateway

Payment Gateways

With Botswana’s e-commerce market on the rise — it is expected to reach USD 538 Mn by 2027, from USD 246 Mn in 2022 — digital payment gateways are fast becoming an essential.

Such gateways provide the means for merchants to accept online payments through websites, apps or mobile links, and can process card payments, mobile wallets and even cryptocurrency in some instances.

Most Commonly Used Payment Gateway Providers in Botswana;

Transfi
PAYCLY
DPO Group
PayGate
FNB Gateway
Plisio (crypto-enabled)

But many of these providers focus most of their services on larger retailers or offshore platforms. Here's what many small to medium businesses (SMEs), freelancers, and local makers continue to find challenging:

Expensive onboarding
Lack of BWP currency support
No real-time settlement view
Little/todo wallet or domestic banking integration

TransFi: Provide Smart Payment Access Around You and For The World.

In this scattered ecosystem, Transfi is coming up as a disruptor, presenting an easy-to-use bridge for local deals and for cross-border trading.

Transfi enables Botswana-based businesses to: With an easy-to-use API, real-time dashboard, and local currency processing.

Get paid by international customers with a card, wallet, or bank transfer
Provide multi-currency checkout options, such as BWP
Automate transaction matching with accounting software
Transfer funds to local bank accounts or mobile wallets

Whether a local designer is selling to a U.S. customer or a rural e-commerce seller is bringing onboard customers via WhatsApp, Transfi introduces affordability, clarity and compliance into the mix, solving not just for scale, speed and transparency.‍

Cross-Border Transactions

Botswana’s growing involvement in the digital economy makes a strong case for easier cross-border payments — remittances, exports, consulting services, tourism and so on.

Older platforms such as Western Union, Xoom and WorldRemit do provide some capability. But they have restrictions:

High FX markups
No support for mobile money
Delays in payout cycles
Manual paperwork

This is where Transfi’s cross-border payment infrastructure will be important.

What Transfi Offers:

Local bank account or wallet, international payouts in seconds
Transparent FX rates and no mid-market conversion fees
Local observance of KYC/AML standards
Bulk payouts to platforms, marketplaces, or remittance companies
Real-time tracking & settlement in 60+ countries

For freelancers getting paid from around the world, remote teams getting paid in BWP or SMEs exporting goods to the neighbouring countries, Transfi makes what was previously complex, delayed and expensive, fast, simple and easy.

It is part of the infrastructure for businesses that are looking to scale outside Botswana’s borders, without having to establish a foreign bank account or use an expensive third-party intermediary.

Also read: Popular Local Payment Methods and Solutions in Barbados

Conclusion

It’s not just a cash-dominated economy. From mobile money to digital banking, rural inclusion to cross-border innovation, the country is gradually developing a more connected financial identity.

For this transition to be successful, the ecosystem requires tools that are readily available, adaptable, and have global reach, particularly for its young entrepreneurs, remote workers and digital SMEs.

FAQs

1. In Botswana now what is the most commonly used method of payment at the moment?
Cash still reigns, but mobile money and bank transfers are catching up fast, especially in cities.

2. Is it easy for small businesses in Botswana to receive online payments?
The answer is yes, with a gatekeeper like Transfi. It has international and domestic acceptance and facilitates onboarding.

3. Can mobile wallets interoperate in Botswana?
Progress is being made. Players like PosoMoney are completely interoperable, and more players are following suit.

4. How can I send money to Botswana from a foreign country?
In addition to standard services, Transfi offers faster and lower-cost cross-border transfers to the recipient's local bank account or wallet.

5. How many people use Crypto in Botswana? Is it acceptable?
No. There are services like Plisio, but cryptocurrency is still very niche and unregulated.

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