South Africa’s social grant system is going through a shake-up. After months of challenges, the South African Social Security Agency (SASSA) and Postbank have announced they are officially ending their partnership at the end of this month, 30 September 2025.
While this might sound alarming, both organisations assure beneficiaries that grant payments will continue without interruption.
What the Split Means for Beneficiaries
SASSA treats Postbank like any other financial institution, so the mechanics of transferring grant money will remain the same.
Beneficiaries can expect to receive their payments on time, and there are no immediate disruptions expected.
Essentially, the divorce between the two state entities doesn’t mean chaos for grant recipients—it’s more of an administrative change behind the scenes.
How the Partnership Started
The collaboration between SASSA and Postbank traces back to the SA Post Office (SAPO), which was first awarded the Master Service Agreement (MSA) for over-the-counter and cash pay-point services for social grants in 2018.
At the time, SASSA lacked the infrastructure and expertise to manage nationwide grant distribution, prompting the partnership with SAPO.
When SAPO collapsed in 2022, Postbank stepped in to take over the MSA and ensure grant payments continued smoothly.
Since then, millions of South Africans have increasingly turned to private banks, bypassing government services for reliability and convenience.
No New Provider, No Disruptions
During a recent Parliament portfolio committee meeting on Social Development, it was confirmed that Postbank remains a functioning bank.
Social Development Minister Sisisi Tolashe clarified that beneficiaries will continue receiving their grants, and no new service provider will be appointed to replace Postbank.
SASSA distributes R22.4 billion in social grants every month through 22 financial institutions.
The top recipients include:
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Capitec with 7.6 million beneficiaries
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Postbank with 3 million
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African Bank with 2.1 million
Despite the split, Postbank will continue to handle roughly half a million SASSA accounts, so many beneficiaries won’t notice any change in their banking routine.
Transition and Security Updates
Postbank has been given until 31 December 2026 by the SA Reserve Bank (SARB) to move its remaining clients from Gold to more secure Black cards.
This follows a cryptography breach in 2021 that affected SASSA and Postbank cards.
Biometric enrolment is now mandatory, ensuring a safer system moving forward for grant recipients.
Should You Be Concerned?
For most SASSA beneficiaries, the split between SASSA and Postbank won’t affect your monthly payments.
If you’re one of the 500,000 still using Postbank, your grants should continue to arrive as normal.