Berlin wants to introduce the payment card as an alternative to cash services for refugees

Berlin wants to introduce the payment card as an alternative to cash services for refugees

The payments of cash to refugees are controversial in Germany, and there is currently a discussion about whether benefits in kind should be introduced instead of cash. A possible solution could be the introduction of a payment card for refugees. The project, which is discussed at the Prime Ministers' Conference, is still in the initial phases. In Hanover, the introduction of such a map is already being considered at the local level.

A company from Berlin, "Publk", has already developed such a payment card called "SocialCard". This card is not only intended for refugees, but also for German help recipients without their own checking account. The business model is based on the digitization of cash payments to simplify complex payment processes.

The "SocialCard" is based on the infrastructure of large payment processingers such as Visa or MasterCard and can be physically used as a plastic card or digital for the smartphone. It can be used at loading boxes, ATMs and on the Internet. The payment card could also be programmed individually, for example to make regionalized restrictions. It would also be possible to prevent the payment of cash from machines or to set an upper limit for it. The card can only be used with credit and cannot be covered.

The card is usually issued by municipal authorities. Each card is assigned a unique IBAN to which social benefits are transferred and then credited to the card. The account stands can be viewed by the municipality, but the specific use of the card is subject to banking secrecy.

The FDP has put pressure on the cash payments to reduce refugees and to interrupt the financing cycle of the smuggling gangs. It demands that all federal states use the existing possibilities for the introduction of payment cards to limit illegal migration.

Source: According to a report from www.tagesspiegel.de