Cash is only available to a limited extent: payment cards for asylum seekers are available throughout Germany

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The states have agreed on standards for the introduction of a planned payment card for refugees. 14 of the 16 states are pursuing a joint procurement process, as the Hessian State Chancellery announced on Wednesday in Wiesbaden for the Premiers’ Conference (MPK). Bavaria and Mecklenburg-Vorpommern are also aiming to introduce payment cards, but want to go their own way when issuing them.

In the future, refugees will receive part of the benefits to which they are entitled, according to uniform standards, as credit on their card instead of in cash. At the beginning of November, the MPK, of which Hessen is currently chairman, and Chancellor Olaf Scholz (SPD) agreed to introduce the payment card.

Balance card with debit function

The MPK then established a working group chaired by Hesse to develop a model of uniform national minimum standards. The tender process to identify a service provider has now started, it was said from Wiesbaden on Wednesday.

It is a balance-based card with a debit feature that works without linking an account. It is intended to replace cash. In the future, refugees should receive part of their benefits as credit on the card instead of in cash.

Each federal state determines how high the amount should be. Each country also decides on additional functions itself. However, the technical capabilities of the card must be uniform everywhere.

Reduce incentives for illegal migration

The premiers of the states and Chancellor Olaf Scholz (SPD) agreed in November 2023 that asylum seekers in Germany should receive at least part of their benefits as credit on a payment card in the future. A federal working group subsequently developed proposals for national minimum standards. The planned tender primarily concerns a joint service provider for the technical infrastructure.

Rhein sees the introduction of the payment card as an important step in reducing incentives for illegal migration to Germany. “With the introduction of the payment card, we reduce the administrative burden for municipalities, prevent the possibility of transferring money from state aid to the countries of origin and thus combat inhumane smuggling crime,” he explains.

Asylum seekers receive legally established standard benefits and additional special support, for example in the event of illness or pregnancy. Some municipalities have already introduced payment cards for refugees in model tests, with which they receive state benefits as credit, but no more than cash. For example, since December 2023 in the Greiz district of Thuringia. (AFP/SDA)

Source: Blick