1.7 Million SASSA Grants at Risk Amid Postbank Dispute
The ongoing dispute between SASSA and Postbank is raising serious concerns among beneficiaries who depend on Postbank for their grant payments. Reports indicate that over 1.7 million SASSA grants at risk amid Postbank dispute, freezing millions of beneficiaries’ accounts.
Postbank, South Africa’s state-owned bank, has faced major challenges in recent years, including financial losses, leadership instability, and operational failures, particularly in the distribution of social grants. These ongoing issues have raised doubts about the bank’s stability and its capacity to serve the public effectively.
1.7 Million SASSA Grants at Risk Amid Postbank Dispute
Recently, the South African Reserve Bank (SARB) ordered the sudden suspension of Postbank’s black card distribution due to compliance concerns. This suspension has put an estimated 1.7 million SASSA grants at risk, as uncertainty surrounding Postbank’s operations continues to grow.
Since early May 2025, over 1.7 million SASSA recipients across South Africa have experienced delays in receiving their May grant payments. The issue has affected critical payouts, including Old Age Grants, Child Support Grants, and others, leaving thousands of vulnerable households without income.
The trouble began when Postbank encountered technical glitches and system errors that disrupted the payment process, causing failed transactions, empty balances, and frozen cards for many beneficiaries.
This is not the first time Postbank has struggled with grant distribution. Since taking over the responsibility for SASSA grants in 2018, the partnership has faced numerous challenges:
- 2022 Theft: Insiders at Postbank stole around R89 million from the social grant system through a major internal fraud scheme.
- 2023 Glitch: A technical failure tied to a payment switch software dispute caused delays for over 600,000 grant recipients.
- 2025 Contract Dispute: A legal battle with a UK-based contractor put over 3 million social grant payments at risk.
- 2025 Account Freezes: Postbank froze many SASSA accounts during a card migration process, leaving beneficiaries unable to access their grants.
These incidents underscore the ongoing difficulties in ensuring reliable and secure grant payments for millions of South Africans.
SASSA Urges Beneficiaries to Use Alternative Banks for Grant Payments
In response to Postbank’s suspension of the distribution of the black card on their site, the South African Social Security Agency (SASSA) announced the revalidation of the SASSA Gold Card, which will remain functional beyond 31 May 2025, providing temporary relief to beneficiaries.
However, millions of users already switched to the black cards in April 2025 are now facing issues due to the ongoing Postbank dispute with SASSA. To prevent further problems, SASSA has indefinitely postponed the deadline for switching to the black card and encourages beneficiaries to explore alternative banking options.
To minimize the risk of payment disruptions, SASSA recommends that beneficiaries open a new bank account at any bank other than Postbank and link their grant to this new account for more reliable payments.
Beneficiaries can follow the online process ‘change banking details SASSA‘ or visit the nearest SASSA office with their ID and new bank account details.
For assistance, contact SASSA at 0800 60 10 11 or visit a local SASSA office.
