Relief for millions of grant recipients came when Postbank notified recipients that its MSA with SASSA will not terminate on 30 September 2025, as it was supposed to do. This instead gives an extension in the agreement for another three months from the current date so that social grant disbursements continue without any interruption. This decision has come in the backdrop of worries that should the contract have ended, Postbank would have withdrawn from distributing SASSA grants hence issuing a preference on recipients for changing their banks to receive payments or completely switching the mode of payment.
What the Extension Means for Gold & Black Card Holders
This extension grants gold and black cardholders with SASSA social grants the ability to use the same cards for accessing social grants. Postbank CEO Nikki Mbengashe said that the MSA is “firmly in place” until resolved. Beneficiaries are advised not to change banks or switch payment methods unless instructed to do so; they should ignore all such advisories to this effect.
The gold cards, in particular, will remain valid for up to 15 months in this transition period, giving beneficiaries the ability to access their funds while the finalization of the transfer to black cards is completed.
Why the Contract Was at Risk
Original contract termination was to be caused by past disputes and a High Court ruling with resulting concerns that Postbank’s role in grant distribution would cease. Speculation was that beneficiaries may have to migrate into different banking systems, or at the very least, face disruption in getting hold of their much-needed funds. Thus, the extension provides breathing space for SASSA, Postbank, and government bodies to iron out relevant issues and provide clarity to SASSA grant recipients.
How Beneficiaries Should Proceed
Beneficiaries should continue to use their gold or black SASSA payment cards as normal, and they should not take any action unless there are updates from either SASSA or Postbank. Recipients are encouraged to keep an eye on official announcements by SASSA or Postbank and report any problems with payments immediately. This extension is designed to prevent disruption and give all parties a chance to seek a lasting, stable solution.
Also Read: SASSA October Grant Payouts: Key Dates and Updates for Beneficiaries