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- Postbank has confirmed that the first phase of the closure of cash pay points for social grants has begun.
- From this month, beneficiaries will be unable to withdraw cash from Post Office branches in cities and towns, as well as branches that serve less than 50 beneficiaries.
- However, civil society organisation the Black Sash said there had been no communication about the closures.
- For more financial news, go to the News24 Business front page.
The South African Post Office (SAPO) has started closing cash payment points for social grant recipients, Postbank has confirmed.
Spokesperson for Postbank, Bongani Diako, said the February grant payment cycle (2 to 24 February) had signalled the first phase of the closure of cash payment points at Post Office branches after the initial announcement in December last year.
Diako said cash payments would be discontinued at "urban" or town and city branches, as well as branches that pay 50 or fewer beneficiaries as part of the first phase.
READ | Post Office to stop cash payments of social grants
The process was set to begin in January and end in March this year.
Meanwhile, civil society organisation Black Sash has said the closure of CPPs has come at a considerable cost for beneficiaries who will be forced to fork out money to travel to alternative pay points.
In December 2023, the South African Social Security Agency (Sassa) and Postbank said the decision to close CPPs was initially made in 2018 and forms part of a strategy to help keep customers safe by decreasing the possibility of cash-in-transit heists and address capacity challenges at post offices.
More than 26 million South Africans are dependent on social grant payments.
At the time, Postbank and Sassa said beneficiaries would not be affected significantly by the closure of CPPs, as 98% already use various National Payment System (NPS) channels, including withdrawing cash from retailers such as Boxer, Pick n Pay, Spar, Shoprite, Usave and Checkers, and ATMs.
Speaking to News24, Diako said the phasing out of CPPs would happen in a "staggered manner", with beneficiaries encouraged to use other NPS channels and pay for purchases using their card from 5 March. However, PIN resets and card re-issuances at the Post Office will continue, she said.
However, the regional manager for Black Sash, Evashnee Naidoo, said there had been significant confusion among beneficiaries regarding the closure of hundreds of CPPs.
"Within our beneficiaries, we have found a lot of confusion about the closure [of CPPs at post offices]. They do not know where they will be getting their grants now [...] Now, they will have additional travel costs [to get to other NPS channels]. ATM security is also an issue, and retailers have begun to struggle with the number of beneficiaries coming in for payments," she said.
She also said there has been no communication from the government to assist with the closure of CPPs and to help beneficiaries cope with the change in NPS channels.
According to Naidoo, elderly and disabled grant beneficiaries have clung to Post Office branches to withdraw their grant payments, as this option is often safe and reliable and requires less technical literacy than ATMs.
In response, Diako said that Postbank and Sassa are implementing a "nationwide communication" programme regarding the details of closures of CPPs at Post Offices via social media platforms, radio announcements, and community engagements.
