Only One Million Grantees Have So Far Switched to Postbank’s New Card

• About one million beneficiaries have so far switched to the new Black Card.
• At a briefing on Monday, Postbank CEO Nikki Mbengashe said they spent “just over R200 million” on the card swap transition.
• Beneficiaries who still have the Gold Card after 20 March can still access their grant money at selected post offices with their ID, while bedridden beneficiaries can arrange home visits through SASSA or Postbank.
• Postbank says it’s addressing challenges in the Western Cape and rural areas by deploying extra staff, launching outreach programmes, and expanding card swap locations, including SPAR stores.

In just three days Postbank’s SASSA Gold Card will be phased out, and only a third of beneficiaries — about a million out of nearly three-million people — who use the state bank to receive their grants have switched to the new Black Card.

Since Postbank’s announcement last year that it would be discontinuing the Gold Card, thousands of beneficiaries were forced to wait outside a limited number of service sites where the card exchanges were being conducted. GroundUp has reported of the many challenges Gold Card holders faced in trying to change their cards to the new one.

In February Postbank was called to Parliament to answer questions about the looming deadline. They announced plans to speed up the process, by partnering with the Spar Group to add 200 service sites and trained tellers to alleviate some of the long lines and waiting times across the country.

Postbank had been servicing about 2.9-million SASSA grantees. It’s not yet clear how many more beneficiaries will swap their Gold Card for a Postbank Black Card, but the fact that only a million people currently have black cards just days before the deadline could mean that many Gold Card holders had instead opted to get their grants paid to other banks.

No need to panic

Briefing the public on Monday, Postbank CEO Nikki Mbengashe said the bank is currently issuing over 30,000 Black Cards daily. “With only three days left before the Gold Card stops working, we urge beneficiaries to get their new Black Cards as soon as possible. Your account number will remain the same, but you will no longer be able to access your grant with the old card [after the deadline],” she said.

Beneficiaries who do not yet have a new card can still access their grants over the counter at SA Post Office (SAPO) branches by presenting their ID. Mbengashe said Postbank will list the SAPO branches offering this service on its website.

The transition process, planned to be completed over six months, only gained momentum in January. More than half of the one million card swaps happened in the last six weeks, she said. “The fact that we switched over 450,000 beneficiaries in February alone is a testament to the system working,” she added.

Postbank will continue issuing Black Cards beyond 20 March. “We will continue issuing cards and increasing the number of sites nationally. Currently, we have over 320 sites and are adding more daily. We plead with beneficiaries to continue coming to get their Black Cards,” said Mbengashe.

“No one will be left without their grant if they don’t have the Black Card. Your money will still be in your bank account, and you can access it like any other banking client,” Mbengashe said.

SASSA’s acting CEO Themba Matlou said that of the 19-million social grants, Postbank only handled payments to 15%. Speaking on the agency’s role in the transition, he said, “At some of the replacement sites, there were long queues but no dignity services like water and chairs. That’s where SASSA came in and supplied water and chairs for beneficiaries to wait comfortably in the queue.”

To address the surge in demand, SASSA extended working hours, increased staff, and intensified its communication drive.

Addressing challenges in the Western Cape and rural areas

Postbank has acknowledged challenges in certain regions, particularly the Western Cape. “We are struggling to get resources to man the sites,” Mbengashe said. Postbank has sent more staff from other regions to the Western Cape and is working closely with the Department of Social Development MEC, Jaco Londt, to place more resources.

To reach rural communities, Postbank has partnered with SASSA to deploy roving teams to facilitate card swaps where needed. “We go where no one else can reach. We are partnering with local governments to communicate our efforts, including loud-hailing in communities,” Mbengashe said.

Eurekha Singh, Postbank’s chief operating officer, said there are currently 27 sites in the province for beneficiaries to swap their cards. “We have 297,000 customers in the province. We’re also beginning to activate Spar stores in the Western Cape, and should see a few more of those in the next week or two,” she added.

Meanwhile, Mbengashe said Postbank has spent “just over R200 million” on the Black Card transition. She explained that the costs stemmed from partnering with compliant retailers to meet regulatory requirements.

“We also hired over 700 people. The project required resources like tables, branding, and printing personalised cards with chips … We paid for site space, transport for roving teams, and sometimes accommodation,” Mbengashe said.

Beneficiaries who require home visits can arrange it by contacting SASSA or Postbank directly. “We ask that those in need provide a medical certificate, social worker certificate, or clinic letter to confirm their condition. This is necessary to prevent misuse of the service,” she said.

Read More at GroundUp