A STUDY to determine a preferable method of receiving social grants has revealed that more recipients opt for the electronic payment system.
The survey, commissioned by FinMark Trust, was conducted by Progress Research and Development among 1025 households in KwaZulu-Natal, Eastern Cape and Gauteng between December 2011 and March 2012.
There are two methods used by the SA Social Security Agency to pay out grants. One is when a recipient gets a cash payment card and has to do thumb verification. The other is electronically, in which the beneficiary gets a bank card and withdraws from the ATM.
The survey shows that 70% of people in urban areas use the electronic payment method while 30% use cash payment method.
About 63% of recipients in peri-urban areas use electronic payment method while 37% use the cash payment one.
In rural areas, 65% of grants recipients use the electronic payment while only 35% use the cash payment method.
Both categories said they had chosen their method of payment because they "trusted it".
On average, people wait for 30 minutes to get their grants, and the longest time in the queue is three hours.
Reathe Rain-Taljaard, head of Progress Research and Development, said the choice is also determined by the availability of the funds.
"There is a daily withdrawal limit of R1,000 in the electronic method but pensioners get more than R1,000, so they can only withdraw R1,000 at a time. This means that pensioners would prefer the cash payment system because they get the whole R1,200."
Recipients of grants prefer ATMs
A STUDY to determine a preferable method of receiving social grants has revealed that more recipients opt for the electronic payment system.
The survey, commissioned by FinMark Trust, was conducted by Progress Research and Development among 1025 households in KwaZulu-Natal, Eastern Cape and Gauteng between December 2011 and March 2012.
There are two methods used by the SA Social Security Agency to pay out grants. One is when a recipient gets a cash payment card and has to do thumb verification. The other is electronically, in which the beneficiary gets a bank card and withdraws from the ATM.
The survey shows that 70% of people in urban areas use the electronic payment method while 30% use cash payment method.
About 63% of recipients in peri-urban areas use electronic payment method while 37% use the cash payment one.
In rural areas, 65% of grants recipients use the electronic payment while only 35% use the cash payment method.
Both categories said they had chosen their method of payment because they "trusted it".
On average, people wait for 30 minutes to get their grants, and the longest time in the queue is three hours.
Reathe Rain-Taljaard, head of Progress Research and Development, said the choice is also determined by the availability of the funds.
"There is a daily withdrawal limit of R1,000 in the electronic method but pensioners get more than R1,000, so they can only withdraw R1,000 at a time. This means that pensioners would prefer the cash payment system because they get the whole R1,200."
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos