But grant beneficiaries still urged to switch to Black Card
- SASSA Gold Cards will remain valid until all beneficiaries have successfully switched to Postbank Black Cards, following approval from the South African Reserve Bank.
- This comes after weeks of chaos as Postbank scrambled to switch nearly 3-million people to the new cards.
- SASSA has urged beneficiaries to switch soon despite the extension to avoid last-minute delays.
Social grant beneficiaries using the South African Social Security Agency's (SASSA) Gold Card can continue using their cards until all users have switched to Black Cards.
In a statement on Friday, SASSA confirmed that the South African Reserve Bank (SARB) had allowed for "the continued use of the SASSA gold card until all the cards have been successfully replaced."
SASSA said SARB's decision to extend the validity of the Gold Card followed discussions between SASSA and Postbank to find alternative payment methods for beneficiaries who had not yet migrated to the Black Card.
"This decision has been made in the best interest of all the beneficiaries, to safeguard their dignity, lessen panic whilst ensuring their safety and easy access to their grants," SASSA said.
This comes after weeks of chaos as Postbank, the state-owned bank through which SASSA paid 2.9-million grant beneficiaries, scrambled to switch clients to the new Black Card before the deadline on 20 March. By the deadline, only 1.3-million people had switched to the new card.
The transition, which has cost more than R200-million, has been marred by difficulties. Beneficiaries have had to travel long distances to reach a limited number of service points, endure lengthy queues for hours, and deal with frequent system failures.
SASSA's acting CEO, Themba Matlou, welcomed the decision to extend the validity of the Gold Card but urged beneficiaries not to delay in switching to the Postbank Black Card.
"We humbly plea to our beneficiaries to use this opportunity and not wait for the last hour as this will further inconvenience them. From the onset, we listened to the cries of our beneficiaries and understood their frustration. This should not make you relax; this should make you to wake up tomorrow, with less pressure, and change your card," Matlou said.
Postbank is expected to brief the media this afternoon.
Postbank CEO Nikki Mbangashe previously said the transition process was initially planned to take six months. She explained that Postbank had spent "just over R200-million" on the Black Card transition. The costs, she said, were due to partnerships with compliant retailers to meet regulatory requirements.
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Timeline of chaotic card-switch
- November 2024: Postbank announces that Gold Cards set to expire on 31 December would remain valid, but that cardholders will eventually be required to switch to new Black Cards with enhanced security features that meet updated banking standards.
- November 2024-January 2025: Postbank issues between 2,300 and 3,500 Black Cards a day.
- 7 February 2025: Postbank sets a deadline for all cards to be switched by 28 February, increasing its target to 10,400 cards per day.
- 14 February 2025: The deadline is extended to 20 March. Gold Card holders are told their cards will no longer work after the deadline.
- 18 February 2025: Postbank is called to Parliament to address concerns about the slow pace of the transition. The bank announces plans to speed up the process by partnering with the Spar Group to introduce 200 additional service sites, and to train tellers to help ease congestion.
- 18 March 2025: Postbank says 1.1-million people have switched to the Black Card and it is issuing more than 30,000 Black Cards a day.
- 20 March 2025: The deadline comes and goes, with Postbank reporting that only 1.3-million of the 2.6-million social grant clients serviced by Postbank having switched to the new card. Tens of thousands of people have likely left Postbank and switched to private banks instead.
