Social grant beneficiaries will not be able to make physical cash withdrawals inside South African Post Offices (Sapo) or from other cash payment points (CPP) from the end of March next year, as the entity looks to improve its service offerings.

The Postbank and Sassa released a joint statement on Monday announcing plans to begin the phasing-out process in January 2024.

Social grant beneficiaries who currently make use of the cash withdrawal systems and CPPs will now be required to use their Sassa Gold Cards to facilitate transactions at retail points or bank ATMs.

“The decision to transition away from cash distribution at CPPs was announced in 2018 and is grounded in a commitment to improve overall customer experience,” the joint statement noted.

“Factors such as escalating cash-in-transit heists, unfavourable conditions at some of the CPP sites, and the closure and capacity challenges at many Post Offices drove this strategic move.”
“By migrating beneficiaries to the other National Payment System (NPS) access channels, we are solving these challenges proactively,” the statement added.

This latest development follows days after the Post Office’s business rescue practitioners (BRPs) outlined several measures aimed at restoring the financial health of the state-owned entity.

In their business rescue plan, which received creditor approval, BRPs noted plans to reduce the Post Office’s footprint to some 600 branches. BRPs also outlined plans to phase out over-the-counter payment services and CPPs because of the “drain” the services pose on Sapo’s resources.

According to Sassa and Postbank, the strategy shift is not expected to have a severe impact on grant recipients as about 98% of them already make use of other payment points, which sprouted as a result of the Sapo’s deterioration.

“The transition will be implemented sensibly to ensure that no one is left out. The aim is to ensure continuity in the payments for everyone and that every person is paid their grant in the most efficient, safe, secure, reliable and convenient manner.”