Germany to introduce ‘payment cards’ for asylum seekers

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Asylum seekers in Germany will stop getting cash payments this year and instead be granted special debit cards, according to Hesse Governor Boris Rhein. The cards will reportedly have limited operation, with services such as free cash withdrawals and transfers to recipients both within and outside of Germany blocked.

A number of towns across the country have implemented the new payment system ahead of a nationwide rollout. These are many communities in Baden-Wuerttemberg and Thuringia. Last month, Bild reported that at least 15 asylum seekers had abandoned their communities after Thuringian officials implemented the new regulations.

Speaking on Wednesday, Rhein revealed that 14 out of 16 German states had agreed on uniform standards for such cards, with Bavaria and Mecklenburg-Vorpommern seeking other schemes. They will, however, introduce the new payment method as well, which is expected to be finalized by this summer.

According to Rhein, “with the introduction of the payment card we reduce the administrative burden on local municipalities [and] prevent the possibility of transferring money from state subsidies to countries of origin, and thus combat the inhuman human-trafficking crime.”

The pre-paid card will not be linked to an account and will not provide card-to-card transfers within Germany or to recipients abroad. If an asylum applicant travels outside of Germany, it will also be ineffective. Local governments will also have the option of limiting the card’s functioning to a specific region.

Asylum seekers will supposedly be able to withdraw limited sums of cash using the cards, with a monthly limit imposed by local authorities.

While German Finance Minister Christian Lindner praised the initiative as a “milestone,” left-wing critics labelled it “cheap populism” and “discrimination.”

The Federal Office for Migration and Refugees (BAMF) stated in early January that more than 350,000 people sought for asylum in Germany in 2023, the highest number since 2016 and a 51% increase from the previous year.

Last month, Germany’s parliament passed measures easing the repatriation of unsuccessful asylum seekers. Among other things, the new rules significantly increase the prison period pending deportation in an effort to prevent scenarios in which rejected applicants simply flee around the time they are due to be sent home.

Furthermore, police were given more authority to inspect migrant accommodations and access their cell phones in order to better identify asylum claimants.