Key Takeaways
Starting in 2025, Germany will introduce a new payment card for asylum seekers across the country.
The card will offer several advantages for asylum seekers.
Currently, asylum seekers can only make payments in cash or through vouchers.
The payment cards for asylum seekers in Germany are nearly ready for full implementation across all states.
While the card has already been introduced in some regions, like Bavaria, it has faced challenges in places such as Hamburg, where it is believed to not fully meet the needs of all groups, according to Schengen.News.
Despite these challenges, the nationwide rollout of the card, which functions similarly to a debit/credit card, is set to be completed by 2025.
Amendments to the Asylum Seekers Benefits Act
Earlier this year, the Federal Cabinet approved an amendment to the Asylum Seekers Benefits Act, allowing refugees to receive benefits through the new payment card instead of in cash.
This card is intended for refugees who have arrived in Germany seeking protection and are unable to support themselves financially. These individuals will be eligible to receive benefits under the Asylum Seekers Benefits Act.
The German government has emphasized that these benefits will be provided through non-cash payments. The amount granted to refugees under the Act will be transferred to the card as credit.
- To ensure uniform conditions for the introduction of the payment card system, the Federal Cabinet approved an amendment to the Asylum Seekers Benefits Act on 1 March 2024. The draft law is now set to be reviewed and discussed by the Bundestag.
New Card to Bring Several Benefits for Asylum Seekers
One of the key benefits of the new payment card, as highlighted by the German government, is that the funds can only be spent within Germany. The card is designed to cover refugees’ living expenses, ensuring that the money cannot be transferred to the refugees’ countries of origin.
- In addition, the towns and municipalities hope that the payment card will reduce the administrative burden: rather than handing out money, they only need to credit the amounts to the cards.Germany’s government
Asylum seekers in Germany currently receive between €400 and €500 per month in cash or vouchers, as they are not legally entitled to work in the country. This situation arises because asylum seekers do not have residency status, meaning they cannot open a bank account or seek employment unless they have been in Germany for at least three months.
Although all German states have agreed to implement a payment card system for asylum seekers, the rules and timelines for its rollout vary from state to state.
