Post Office to stop social grant cash payments

Transition from Social Grant Cash Payments to SASSA Gold Cards

In a significant shift in its service delivery protocol, Postbank has announced that it will terminate the provision of social grant cash payments. Following the announcement, it has been clarified that starting from April 2024, beneficiaries will not be endowed with the convenience of cashing out their grants from ATMs or any specific retail outlets, such as Boxer, Pick N Pay, Spar, Shoprite, Usave, and Checkers.

Impact on Beneficiaries

Beneficiaries of social grants, who are currently reliant on the Cash Payment Points (CPPs) and cash withdrawal structures, will be necessitated to use their SASSA Gold Cards. This new system will require beneficiaries to withdraw money from specific retail points that accept these cards or through ATMs associated with banks.

‘Swipe for Goods’ and Cash-Back Functionalities

Postbank has clarified regarding the utilisation of SASSA Gold Cards, stating that grant recipients can use these cards at any facility that accepts a bank card. Therefore, recipients can make purchases in any retail outlet that has a point of sale to swipe for goods. They can also withdraw money from any retail entity that facilitates a cash-back functionality.

Limited Impact on Beneficiaries

According to SASSA, a large majority of social grant beneficiaries, approximately 98% as per Postbank’s data, are already recipients of their grant through National Payment System channels. Consequently, this transition is not likely to affect numerous beneficiaries.

Ensuring a Smooth Transition

As per Postbank, they are committed to facilitating this change in the most efficient yet reliable manner. They stated that the chief aim is to “ensure continuity in the payments for everyone, and that every person is paid their grant in the most efficient, safe, secure, reliable and convenient manner.”

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