SASSA will not renew its Master Service Agreement (MSA) with Postbank after 30 September 2025, announcing a change five years in advance. However, SASSA officials ensure all beneficiaries will still receive their grants without any disruptions, including those with Postbank accounts.
Payments will continue without interruption
SASSA’s Postbank contract, which is set to expire, does not in any way affect the ongoing relationship. As per her statement, Social Development Minister Nokuzola Tolashe states that Postbank will continue to operate as a fully licensed financial institution providing grant access. Futhermore, there are no plans to onboard a new service provider as SASSA now directly deposits grants into beneficiaries’ bank accounts.
What prompted the change?
There was a strong justification for the Postbank MSA’s termination. The South African Post Office’s (SAPO) cash pay points were shut down because of excessive costs and inefficiency. This reduced the importance of the contract. In addition to the issues that were brought to light with the SAPO cash pay points, SASSA also had ongoing issues with system delays and glitches from Postbank. For these reasons, SASSA felt that continuing the agreement was not beneficial.
Advocates Request Further Explanation and Continuity
Organizations like Black Sash have raised concerns about the impending end and its effects that would be felt by over 2 million grant recipients. They have requested a plan from SASSA that details how they intend to ensure that service delivery is not disrupted. While beneficiaries are requested to stay calm, they are also asked to keep themselves updated with other ways of accessing their grants.
Actions Beneficiaries Must Perform Now
In light of the contract ending, here is a brief of what grant beneficiaries need to do:
- Your Postbank account will still receive your grants unless you instruct otherwise.
- If you are satisfied with the current setup, you need not do anything.
- You can change to another bank through the standard process if you wish.
- SASSA will start a new biometric verification system from September 2025 as part of a fully digital system.
Looking Beyond September
The SASSA Grants Administration System (SAGA) contract extension expires on the 30th of September 2023. After this date, SASSA will discontinue drawing funds from the Postbank Infrastructure, marking a big change in service delivery. SASSA intends to implement a more digitised, wholesome, and direct banking approach that does not rely on third-party service providers. Although beneficiaries worry about the changes, the authorities claim that everything is in place to guarantee the smooth transition—limiting the inconveniences and ensuring access to all users.
Also Read; South Africa Senior Pension Update 2025: New Rates And Payment Dates