The evaluation of beneficiary experiences using the SASSA pay-point system in Mankweng

Abstract

The transformation of social security systems is a trending topic in many countries across the globe. The eradication of the cash transfer programmes is irrefutable and many countries have embraced electronic payment (e-payment) systems, which are far more effective and efficient in dispensing social grants to the beneficiaries. In South Africa, e-payment systems have especially been helpful to millions of beneficiaries who had to travel over long distances and wait in spiraling queues to access their grants. These people can now safely and conveniently access their grants at an ATM machine or a point of sale. The transformation of the South African social security system has equally been welcomed by senior citizens, disabled people and pregnant women alike. Although the e-payment system has injected much-needed relief into the plight of ordinary beneficiaries trying to access grants, it is not a perfect system. The majority of the pay-points lack proper facilities such as toilets, adequate seating and shades. In order to pursue its vision to provide a convenient and world class service to the people of South Africa, the South African Social Security Agency (SASSA), introduced reforms in the administration and distribution of social grants. Social grants are viewed by the South African government as essential instruments that seek to reduce the cycle of poverty and alleviate some of the hardships in poor households, (Dubihlela, 2010). The number of beneficiaries receiving social grants has increased from 2.6 million in 1994 to 16.1 million in 2014 (SASSA, 2014). Although income inequality is still unacceptably high in South Africa, this expansion of the social grants system has significantly contributed to the reduction in the number of people living below the breadline (Hagen-Zanker, 2011). SASSA’s new payment system was introduced in 2012 and it was designed to uproot fraudulent activities in the grant distribution processes. Moreover, the system purported to reduce crippling administration costs. The newly developed SASSA smart card is at the heart of the new system. The smart card symbolizes a payment solution that promotes financial inclusion. It is a modern alternative to receiving cash and hence, promotes the notion of a cashless society in a crime susceptible South Africa. This paper aims to explore challenges faced by the beneficiaries of government grants since the introduction of SASSA’s new payment system. The study will firstly, record, analyze and evaluate the experiences of the beneficiaries of the system. Secondly, it will investigate SASSA’s new payment system in its entirety, with a sharp focus on the system’s drawbacks. This study will determine whether SASSA’s new payment system has achieved its intended objectives.