Germany to Introduce Payment Cards for Asylum Seekers Starting in 2025
Key Takeaways
1. Germany will introduce a nationwide payment card for asylum seekers starting in 2025.
2. The new card offers several advantages for asylum seekers.
3. Currently, asylum seekers can only receive payments in cash or vouchers.
Germany is set to fully implement a payment card system for asylum seekers across all states by 2025. While the card has already been introduced in some areas like Bavaria, other regions, such as Hamburg, have faced challenges in meeting the needs of all groups, despite its launch.
The new system, which resembles a debit/credit card, will be rolled out nationwide in 2025.
Changes to the Asylum Seekers Benefits Act
Earlier this year, Germany's Federal Cabinet approved amendments to the Asylum Seekers Benefits Act, enabling refugees to receive benefits through the new payment card instead of cash. This move aims to streamline the process for asylum seekers who cannot support themselves and are entitled to benefits under the Asylum Seekers Benefits Act.
The funds granted to refugees will be credited to the card as non-cash payments.
The German government emphasized that these benefits are intended solely for living expenses in Germany, meaning recipients cannot transfer the money to their home countries.
To ensure a smooth transition, the Federal Cabinet passed an amendment to the Act on March 1, 2024, and the Bundestag will soon review this draft law.
Benefits of the New Payment Card
The government points out several advantages of the new card system:
- The funds can only be used within Germany to cover living expenses.
- The card simplifies administrative procedures for municipalities, as they will no longer need to distribute cash but can directly credit the funds to the cards.
Currently, asylum seekers in Germany receive between €400 and €500 per month in either cash or vouchers, as they are not allowed to work legally unless they have been in the country for at least three months.
While the implementation of the payment card system has been agreed upon by all German states, the specific rules for its rollout may vary across regions.