The SASSA-Postbank Master Service Agreement (MSA) officially ends tomorrow (Tuesday 30 September 2025). This became official last Friday (26 September) in the Gauteng High Court in Pretoria, after Postbank’s urgent application to stop proceedings was struck off the roll with costs.
As such, the long and messy SASSA-Postbank divorce appears to finally be over. Termination of the contract seemed inevitable after the latter’s poor handling of Gold-to-Black card swaps earlier this year. And the shutting down of most of its cashpoints. But what about the roughly three-million beneficiaries who still bank with Postbank?
MESSY SASSA-POSTBANK DIVORCE
It was the South African Social Security Agency that issued notice back in December 2023 to terminate the agreement, reports The Citizen. The government agency provided a six-month lead time to end the service agreement. However, Postbank immediately sought an 18-month wind-down period, which it was granted.
Now, request for a further extension to resolve SASSA-Postbank business has been denied. However, Postbank has escalated matters, declaring a dispute against the social welfare agency, reports IOL. It says the ruling could have serious implications on the livelihoods of the millions of beneficiaries still with Postbank.
OCTOBER 2025 SASSA GRANT INCREASES
Meanwhile, SASSA Old-Age, Disability and War Veteran recipients should be celebrating this month as October grants increase. Unfortunately, not all recipients received the increase, with Child Support and Foster Child Grants staying unchanged.
Increases or no, any beneficiary still working through the SASSA-Postbank arrangement could face trouble this week. Old-Age Grants are paid on Thursday 2 October 2025. Disability on Friday 3 October 2025. And Childcare on Monday 6 October 2025. As it is unknown whether it will be able to honour its payment. Therefore, all remaining SASSA-Postbank beneficiaries are encouraged to change their banking arrangements as soon as possible.
HOW TO SWITCH YOUR GRANT FROM POSTBANK
SASSA beneficiaries can update their banking details by visiting their nearest SASSA office with the following essential documents:
- Valid ID document.
- Bank statement or card showing your new bank account details.
- A valid SASSA-Postbank card.
- You must complete a Change of Payment form with a SASSA staff member.
- Likewise, you will have to undergo mandatory biometric enrolment at the same time.
- You can also call the SASSA helpline at 0800 60 10 11 for guidance.
DOOMED FROM THE START SASSA-POSTBANK
For reference, the SASSA-Postbank arrangement started back in 2018. Originally, the SA Post Office (SAPO), and later Postbank after liquidation. This followed the failed Cash Paymaster Services (CPS) deal.
Nevertheless, the agency says the MSA is obsolete because the majority of Postbank cash pay points are now closed. However, Postbank says the divorce will ‘harm grant recipients’ because it will be forced to start imposing withdrawal charges. However, the Judge Colleen Collis delivered her final ruling last Friday that the MSA termination musr proceed as planned.
SASSA-POSTBANK DIVORCE WON’T IMPACT CLIENTS
Moreover, Minister of Social Development, Sisisi Tolashe, says grant recipients will not be impacted by the termination, Tolashe assured parliament that social grant payments to roughly three-million Postbank clients would not be interrupted after the MSA ends this week.
“We are happy with the judgment. And we would like to once more emphasise that all the eligible grant beneficiaries at Postbank will continue receiving their grants,” said the minister. Likewise, SASSA CEO Temba Matlou added his reassurance to clients …
“According to the Social Assistance Act, beneficiaries are paid their social grants into the account of their choice. In this instance, those with SASSA-Postbank arrangements will continue to receive their grants. And the termination of the MSA has no bearing on that,” concluded Matlou.
