The South African Social Security Agency (SASSA) has confirmed that the widely used gold cards will remain valid beyond the previously anticipated deadline, bringing relief to millions of grant beneficiaries. This announcement comes as the agency also suspends the rollout of the new Postbank black cards amid ongoing discussions with the South African Reserve Bank (SARB).
According to SASSA spokesperson Paseka Letsatsi, the SARB has instructed Postbank to keep all SASSA gold cards active to ensure that beneficiaries continue to receive their grants without disruption. "Postbank must honour all transactions on these cards. This instruction by the SARB is to ensure that all gold card beneficiaries who have not yet migrated to the Postbank black card continue to receive their grants seamlessly," said Letsatsi.
Last year, SASSA and Postbank announced a transition plan to phase out the gold cards in favor of the black Postbank cards. This shift aimed to modernize the payment system and reduce fraud, but the rollout has faced significant challenges, including technical glitches, long queues, and public confusion.
In a significant move, SASSA has announced that the issuing of Postbank’s black cards has been suspended indefinitely, as discussions between SARB and Postbank are ongoing. This decision allows authorities the time to resolve operational challenges and develop a clearer roadmap for the transition. It also prevents beneficiaries from being forced into a new system prematurely, especially when the existing gold cards are still functioning as intended.
Despite the delays, over one million beneficiaries have already migrated to the new black card system. While this is a positive sign, millions more are still reliant on the gold cards, underscoring the importance of ensuring a smooth and well-communicated transition process. SASSA has assured the public that no beneficiary will be left behind, and they will continue to receive their grants through existing channels for now.
Another crucial point emphasized by SASSA is that beneficiaries have the right to choose their own bank. "Beneficiaries can approach the nearest SASSA local office if they wish to change their payment method or bank," said Letsatsi. This flexibility allows grant recipients to explore better banking services or payment options that suit their individual needs.
SASSA urges beneficiaries to remain calm and avoid reacting to unofficial information or rumors. Updates regarding deadlines or changes to the payment system will be communicated via official SASSA platforms and credible government sources. In the meantime, beneficiaries can continue using their gold SASSA cards at ATMs, supermarkets, and other approved vendors.
The extension of the gold card validity and the suspension of the black card rollout are designed to protect the well-being of South Africa’s most vulnerable citizens, ensuring that no one is left without access to essential financial support during the transition. As the SARB prepares to announce a new deadline, SASSA and Postbank remain committed to finding the most efficient, secure, and user-friendly systems for distributing social grants.
The South African Reserve Bank’s decision to halt the transition from SASSA’s gold cards to Postbank’s black cards has created uncertainty for social grant beneficiaries. The SARB cited concerns over Postbank’s security system compliance, limited banking infrastructure, and inadequate communication as reasons for the temporary suspension of the process.
SASSA maintains that the old cards will continue to function until the Reserve Bank announces an updated deadline. SASSA’s Northern Cape spokesperson Lungelo Mkamba stated, "Although the issuance of the Postbank black cards has been temporarily halted on instruction of the South African Reserve Bank, all SASSA gold cards remain functional until a new deadline for the termination of the SASSA gold card is issued by the SARB soon. Beneficiaries can, therefore, continue using their gold cards as usual, and there is no need for immediate panic."
Postbank's CEO, Nikki Mbengashe, confirmed that the SASSA gold card can be used for another two months. "Gold card beneficiaries who have not yet switched to black cards can still use their gold cards until the end of May 2025. They will have uninterrupted access to social-grant payments and be able to use their gold cards to make purchases and cash withdrawals at approved retailers," she said. Additionally, those who lost their cards can still receive over-the-counter cash payouts at the post office.
As the situation develops, beneficiaries are encouraged to stay informed and utilize official channels for updates. The importance of maintaining access to social grants during this transition cannot be overstated, particularly for South Africa's most vulnerable populations.
