SA Post Office and Postbank clarify roles in social grant transition

The South African Post Office (Sapo) on Friday distanced itself from assisting Post Bank card holders and South African Social Security Agency (Sassa) beneficiaries with Gold or new Black card withdrawals, citing the lack of a service level agreement with Sassa and Post Bank, according to a press statement released Friday.

Meanwhile, Postbank has extended the deadline for beneficiaries to switch to the new Black cards, underscoring a critical transition period for millions of social grant recipients.

Sapo’s statement clarified that its branches are not equipped to handle payouts, PIN resets, or card conversions for Gold or Black card holders.

"Social grant beneficiaries should not visit Post Office branches expecting to withdraw any of their Sassa benefits," the statement warned, emphasizing that no funds are available at its locations for these beneficiaries. The agency will, however, continue to facilitate transactional services for Mzansi and Flexi card holders until May 31, 2025.

The announcement comes as Postbank, in a separate briefing, extended the deadline for replacing Sassa Gold cards with the new Black cards by two months, setting a final cutoff of May 31, 2025.

Postbank CEO Nikki Mbengashe, speaking at a media briefing in Pretoria on Friday, described the extension as a lifeline for the 1.3 million beneficiaries yet to make the switch out of 2.6 million total users. "This is now mainly, of course, to those beneficiaries who have not had the time to go and replace their gold card with the black card," she said, noting that the cards’ functionality at retailers and ATMs remains unchanged during the grace period.

The transition, initially slated for completion by February 28 and later extended to March 20, has faced delays, prompting the latest reprieve. Mbengashe stressed the urgency of compliance, cautioning, "There will be no new extensions. After these two months, there’ll be no alternative. If you don’t have your black card, you will not be able to access your grant."

She urged beneficiaries to act swiftly, with over 300 replacement sites available at retailers like Shoprite, Usave, Spar, Pick ’n Pay, and Boxer, accessible by dialing 120355#.

Sapo echoed Postbank’s directive, explicitly warning Gold and Black card holders against seeking services at its branches. "There are no funds available at any Post Office branch for withdrawal for these beneficiaries," the Sapo statement reiterated, adding that it is not handling Gold-to-Black card conversions. The agency advised beneficiaries to contact Sassa or Postbank directly for payment options.

Mbengashe reinforced this message, saying, "We are insisting that people please not use the Post Office. They will not service you if you go to them." She clarified that only Mzansi Flexi card customers and asylum seekers can continue using SAPO branches. For Gold card users, she noted, "The most important thing as we continue to allow people to use their gold card is to emphasize that you must go and still replace this gold card and use these two months to your advantage."

Postbank reported processing around 30 000 card replacements daily, requiring only an ID or temporary ID for the process. Mbengashe urged beneficiaries not to procrastinate, warning of potential bottlenecks as the deadline nears.

"Grants will continue to be paid into bank accounts but can only be accessed using the new Postbank black card after May 31," she said, signaling an end to alternative access methods.

BUSINESS REPORT