After years of disputes, court battles, and service failures, the long relationship between the South African Social Security Agency (SASSA) and Postbank is finally coming to an official close.
The Master Service Agreement (MSA) between the two parties ends on Tuesday, 30 September 2025, following a High Court ruling last Friday that dismissed Postbank’s urgent attempt to delay the termination.
How the Breakup Began
The fallout between SASSA and Postbank has been brewing since December 2023, when SASSA gave notice to terminate the deal.
Initially, Postbank managed to secure an 18-month extension, but its request for more time was recently denied.
The final straw came earlier this year after the disastrous Gold-to-Black card swap rollout, coupled with the shutdown of most Postbank cashpoints — leaving millions of beneficiaries in limbo.
What This Means for Beneficiaries
The biggest concern is what happens to the three million grant recipients who still bank with Postbank.
Old-Age, Disability, and War Veteran grants are set to increase this October, but some beneficiaries could face uncertainty if Postbank struggles to process payments.
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Old-Age Grants: Thursday, 2 October
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Disability Grants: Friday, 3 October
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Childcare Grants: Monday, 6 October
Those still linked to Postbank are being urged to update their banking details immediately to avoid complications.
How to Switch From Postbank
SASSA has advised beneficiaries to visit their nearest office with:
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A valid ID document
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Bank statement or card with new account details
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Their current SASSA-Postbank card
Applicants must also complete a Change of Payment form and undergo biometric verification.
For those unable to travel easily, the SASSA helpline (0800 60 10 11) is available for support.
A History of Problems
The SASSA-Postbank arrangement began in 2018 after the collapse of the Cash Paymaster Services (CPS) deal.
Postbank later took over after the South African Post Office’s liquidation.
But with most of its cash pay points now closed, SASSA argues the agreement no longer serves its purpose. Postbank, however, has warned that ending the deal could lead to extra withdrawal charges for vulnerable grant recipients.
Government Reassurance
Despite these concerns, government officials insist beneficiaries will not be left stranded.
Social Development Minister Lindiwe Zulu (correction: Sisisi Tolashe, as per the ruling) reassured parliament that payments will continue without disruption, even after the contract ends.
“All eligible beneficiaries at Postbank will continue receiving their grants,” the minister confirmed.
SASSA CEO Temba Matlou echoed this, stressing that under the Social Assistance Act, beneficiaries are entitled to choose their preferred bank account, and the MSA termination has no effect on that right.