14 of 16 German federal states have now agreed on common standards for a procurement process that should be completed by the summer. Among other things, the card is intended to prevent refugees from transferring money to their family or friends abroad.
As the Hessian Prime Minister and Chairman of the Prime Minister’s Conference, Boris Rhein from the CDU, announced on Wednesday in Wiesbaden, Bavaria and Mecklenburg-Western Pomerania are going their own way, but also want to introduce a payment card. “In my view, this is a very important step to reduce incentives for illegal migration to Germany,” explained Rhein on the subject of foreign transfers.
Securing a living in Germany
The co-chair of the Prime Minister’s Conference, Lower Saxony’s Prime Minister Stephan Weil from the SPD, explained: “The financial resources provided under the Asylum Seekers’ Benefits Act are intended to secure livelihoods in Germany; with all due understanding, they do not serve to finance families in their home country.”
Germany’s FDP Finance Minister Christian Lindner said the incentives for irregular migration must be significantly reduced. “The introduction of the nationwide payment card is a milestone.”
Each country decides for itself the amount of the cash amount and other additional functions, explained Rhein. According to current case law, part of the money must be paid out in cash to every benefit recipient. With this pocket money, “we are probably talking regarding an amount around 100 to 150 euros,” added the MPK chairman. “There’s no getting around it, it has to be available in cash.” Everything else must be determined in the states.
Only valid in Germany
The payment card does not have an account connection and can basically be used in all industries, but not abroad. “Use can be restricted regionally by individual countries and sectors can be excluded,” explained Rhein. He cited the gambling industry as an example.
Since cash payments to asylum seekers are largely unnecessary with a payment card, the administrative burden in municipalities is reduced, said Weil. According to a report in the Handelsblatt, the President of the German District Council, Reinhard Sager, called for: “The comprehensive introduction of payment cards for asylum seekers is the right thing to do and must be implemented as quickly as possible.”
The prime ministers of the federal states and SPD Chancellor Olaf Scholz agreed in November 2023 that asylum seekers in Germany should receive at least part of their benefits as credit on a card in the future. The tender now planned is primarily regarding a joint service provider for the technical infrastructure.
Asylum seekers currently receive standard benefits set by law as well as special support, for example in the event of illness or pregnancy. According to the Federal Statistical Office, around 482,300 people had received standard benefits under the Asylum Seekers Benefits Act at the end of 2022; figures for 2023 are not yet available.
Model tests in Thuringia
For several hundred refugees in Thuringia, a payment card is already part of everyday life. The districts of Greiz and Eichsfeld started model tests there in December, and other districts want to follow suit in the coming weeks. From the point of view of those responsible, the initial response is positive: the changeover went smoothly and was widely accepted, they said. Both districts also reported people who left the country following the card was introduced. “The payment card will sort of separate the wheat from the chaff,” said a refugee advisor in Greiz.
The Refugee Council in Thuringia clearly criticized the regulations. Although it is possible to pay in supermarkets, there are problems at the hairdresser, in smaller shops or when purchasing a Germany ticket. The organization Pro Asyl called the payment card a “discrimination instrument”. The main purpose is to make life difficult for people here and to scare them away.
Bavaria wants to test its model for the first time in March. “While the joint tender by the other federal states has not even started yet, we are already in the middle of the award process,” said Sandro Kirchner from the CSU, State Secretary in the Bavarian Ministry of the Interior, in Munich. The radio station Antenne Bayern had previously reported. The payment card is expected to be introduced nationwide in the Free State by summer. Cash withdrawals should be limited to the legally required minimum.
