What, aren't the teachers able to determine who's present anymore? How large are the classes in this school?
All the other potential use-cases such as payment for lunch, logging onto computer systems, identification etc sounds useful. Tracking attendance sounds very misguided though. I didn't go to class a lot and whenever I did show up I caused a ruckus (yea yea, I know... but back then I thought it was hilarious). I don't think anyone's situation would have improved if somebody made me tag in and out of classrooms or globally punished me...