Shoprite Offers Pensioners Chance to Switch to Money Market Account Amid South African Post Office Crisis
As the South African Post Office faces possible collapse, retail giant Shoprite is offering pensioners the opportunity to switch their South African Social Security Agency (Sassa) gold cards to a Shoprite Money Market Account. This move is aimed at gaining a share of the banking market by providing a fully transactional bank account with zero monthly fees backed by Grindrod Bank. The account is accessible at 25,000 till points in Shoprite, Checkers, and Usave supermarkets nationwide, and all transactions within the Shoprite environment are free.
Shoprite CEO Pieter Engelbrecht reported that the company has already acquired over 2 million customers using the Money Market Account within a year of launching it. He also indicated that the company plans to focus more attention on the initiative, stating that there is “definitely scope for a low-cost banking product.”
This offer is well-timed for Shoprite, as the South African Post Office, which handles Sassa payouts, is facing financial difficulties after two real estate companies secured court orders to have it provisionally liquidated. Shoprite is hoping to win over the 18 million Sassa beneficiaries with its Money Market Account, which already has 3 million account holders. The account carries no monthly fees and offers free transactions within Shoprite, with a flat R5 transaction fee for withdrawals. Account holders can also send money and grocer vouchers, buy airtime, data, and electricity, and pay bills and groceries from their phones without paying any fees. Shoprite is also offering grant recipients up to R100 in Shoprite vouchers when their first Sassa grant of R800 or more is paid into their Money Market Account.