Postbank Reassures Beneficiaries as Social Grant Agreement With Sassa Remains in Place

Millions of South Africans dependent on social grants have been assured of continued access to their payments after Postbank announced that its Master Services Agreement (MSA) with the South African Social Security Agency (Sassa) will remain valid and operational.

The announcement follows weeks of uncertainty surrounding the agreement, which was expected to terminate on September 30, 2025. Postbank confirmed that the MSA will remain in effect until an Inter-Ministerial committee (IMC) is constituted and has deliberated on the matter.

“This brings certainty and reassurance to millions of social grants beneficiaries who will continue to use their Postbank black cards and Sassa gold cards with confidence, enjoying uninterrupted access to their grants and associated banking benefits,” said Postbank CEO Nikki Mbengashe.

The reassurance comes shortly after the Gauteng High Court in Pretoria dismissed Postbank’s urgent application to halt the termination of the MSA. The application, filed earlier this year, sought to prevent the agreement cancellation, which Postbank argued would have placed millions of beneficiaries at risk of losing direct and safe access to their grants.

The court decision meant that, technically, the MSA could have expired at the end of September. However, Postbank’s announcement now confirms that the services will continue without disruption.

Mbengashe expressed concern about the ruling, saying it offered "insufficient relief” to the millions of grant beneficiaries whose livelihoods depend on the continuity of the agreement.

As a state-owned bank mandated to serve, protect and advance the interests of the most vulnerable, we are committed to safeguarding their welfare and access to dignified, safe, and reliable services,” she said.

Postbank, which is wholly state-owned, plays a unique role in South Africa's banking sector. It provides financial services to millions of citizens who are often excluded from mainstream commercial banking. Its partnership with Sassa through the MSA has been central to the distribution of social grants, ensuring that beneficiaries, many of whom live in rural or underserved areas, have reliable access to their funds.

The black postbank cards and Sassa gold cards issued under this agreement are used by millions of grants recipients. These cards allow beneficiaries to withdraw money, make payments, and access other basic banking services.

Sassa CEO Thamba Matiou also moved to reassure the public, stating that all eligible beneficiaries with Postbank accounts will continue to receive their grants.

This is in line with regulation 23(a) of the Social Assistance Act, which allows beneficiaries to choose a preferred account for grant payments,” Matlou explained.

Therefore, the termination of the MSA does not affect those receiving grants via Postbank. His statement reinforced the message that the continuity of grants payment is protected by law and that beneficiaries retain the freedom to select the accounts through which they receive their funds.

South Africa currently grants social grants to more than 18 million citizens, including older persons, people with disabilities, and children from low-income households.

Any disruption to the payment system would have severe consequences, leading to financial hardship, food insecurity, and social unrest.

Confirming the continuation of the MSA, Postbank and Sassa helps to avert such a crisis.

The continuity of the MSA also has broader implications for South Africa's commitment to social protection.

The focus now shifts to the IMC, which will decide on the long-term future of the grant payment system. The question remains whether Postbank will retain its role as a key partner to Sassa or whether other service providers will be introduced.

Mbengashe has clarified that Postbank remains committed to serving the most vulnerable.

"We will continue to stand firmly with the beneficiaries, safeguarding their welfare and access to dignified, safe and reliable banking services,” she said.

Millions of South Africans can rest assured that their grants are safe and accessible. The continuation of the MSA brings much-needed stability at a time of economic hardship, high unemployment and growing reliance on state support.