The new system is dramatically reducing SASSA’s operating costs. Until now, it has cost SASSA between R26 ($3.25) and R35 ($4.38) per grant to pay beneficiaries. Under the new agreement, disbursement costs will be capped at R16.50 ($2.07) per payment, enabling the agency to save up to R3bn ($375m) in operating costs over the next five years. This means that the agency will be able to spend its budget allocation more effectively in the future, making a meaningful difference in the lives of more South Africans.
“The early success of the project rollout affirms MasterCard’s vision to create a world beyond cash, as electronic payments using debit MasterCards opens up a world of financial inclusion for many South Africans who have previously not had access to banking products,” says Dries Zietsman, Country Manager, MasterCard South Africa.
“With over 2.5 million cards already issued since rollout in March 2012, it is clear that the cards are already being widely accepted by beneficiaries who are realising the benefits of a cashless environment,” he concludes.
More Than 2.5 Million MasterCard Debit Cards Issued to Social Welfare Beneficiaries in South Africa (Press Release)