Overview

• The payment card system, launched in March 2024, replaced cash benefits for asylum seekers to curb misuse and reduce administrative work.
• Over 70,000 cards are currently in use across Bavaria, limiting cash withdrawals to €50 per month and restricting online purchases and international transfers.
• Critics argue the system discriminates against asylum seekers, restricts participation in daily life, and is based on unproven claims of misuse.
• Legal challenges have yielded mixed rulings, and some asylum seekers have bypassed cash limits through voucher exchange initiatives.
• The CDU/CSU coalition aims to expand the system nationwide, emphasizing its role in migration policy reforms despite ongoing resistance.