Why Thousands of Grant Beneficiaries Are Migrating to Shoprite?
A minimum of 100,000 extra social assistance disbursements are now channeled into Shoprite‘s Money Market accounts every month. This surge is a direct consequence of the persistent malfunctioning of the Postbank system, as stated by Jean Olivier, the general manager of Shoprite’s financial services division.
Postbank is responsible for distributing social grants on behalf of the SA Social Security Agency (SASSA). Recent reports have revealed that 600,000 beneficiaries received only partial or no grant payments at all. Faced with this recurring issue, many grant recipients have turned to Shoprite Money Market accounts as an alternative means to access their funds, according to News24.
In Olivier’s assessment,
“individuals are expending significant amounts of time and money, particularly on transportation, to visit ATMs or stores, only to discover that their Sassa [Postbank] gold card is rendered unusable due to a system glitch. Travel costs via taxis alone can range from R50 to R75 per round trip.”
By utilizing Shoprite’s Money Market account, beneficiaries can circumvent these unnecessary expenses. An automated SMS notification informs them of the deposited funds, accessible via their mobile phones at home or in-store.
“This eliminates the need for unnecessary trips to and from shops,” Olivier emphasized.
Postbank predicaments have created substantial challenges for beneficiaries attempting to withdraw cash from ATMs or make purchases. Frequent system outages have resulted in card declinations or rendering them entirely nonfunctional. Conversely, those receiving Sassa grants directly into other bank accounts or Shoprite’s Money Market have not encountered similar predicaments.
According to Olivier, resolving Postbank’s issues is unlikely to happen in the near future. Given the persistent challenges, Shoprite advises customers to opt for alternative Sassa deposit methods, such as the retailer’s Money Market accounts or major banks like Capitec and Absa. As Olivier emphasized,
“We would, of course, prefer if they choose us, but if not, opt for another bank to ensure timely monthly payments.”
Rising Shoprite Sales
Moreover, Shoprite has observed an uptick in spending at their stores by grant beneficiaries using the Money Market account. Although Olivier could not disclose precise sales figures due to the limited sample size, he anticipates obtaining more comprehensive data within the next six months.
With already 3.5 million Shoprite customers utilizing the Money Market account introduced in late 2020, its popularity and utility among grant recipients grappling with Postbank issues are evident.
Why Switch to Shoprite?
For South Africans reliant on social grants, swift and convenient access to funds is paramount. The persistent technical issues plaguing Postbank have continued to create barriers, prompting thousands to switch to Shoprite Money Market accounts.
Key benefits of switching include:
- Dependable monthly deposits unaffected by Postbank’s problems
- Instant SMS notifications upon payment receipt
- Convenient mobile and in-store access without long trips
- Decreased transportation costs
- Potentially increased customer loyalty and spending at Shoprite
Amidst Postbank’s persisting dysfunction, Shoprite appears well-positioned to continue attracting social grant recipients to their Money Market accounts. This dependable alternative payment method ensures that vulnerable South African citizens can securely access their monthly funds.