THE South African Social Security Agency (Sassa) will start electronic payments for some social grants beneficiaries through its PostBank corporate account in February.
The Postbank signed a deal with Sassa in 2017 to pay social grants from April 1, this year.
Grindrod is the banking partner of Cash Paymaster Services (CPS), which currently pays social grants.
The Post Office will assist Sassa with the management of social grants, including electronic payments, but not cash payments.
This new social grants distribution deal between the Post Office and Sassa is expected to cost R2.2 billion in the first year.
As compared to the current amount paid to CPS.
Commercial banks will also play a direct role for more than two million beneficiaries, roughly 20% of the total scheme.
Concerns though had been raised about the deal's total cost, as initial reports suggested the SAPO contract would cost more than that of incumbent service provider CPS.
