Germany Rolls Out Prepaid Cards for Refugees, Prompting Backlash

The new payment system aims to curb irregular migration and money transfers abroad but faces criticism over restrictions and stigmatization.

Germany has introduced prepaid payment cards for refugees, with distribution starting in most states, excluding Bavaria and Mecklenburg-Vorpommern.
The cards are capped at €50 in cash withdrawals per month and cannot be used for international transactions, aiming to prevent funds from being sent to smugglers or abroad.
The system offers both physical and digital card options, with refugees able to track transactions and balances via an app, eliminating the need for a bank account.
Critics argue the cards limit refugees' autonomy, increase stigmatization, and could lead to further marginalization within communities.
Activist groups in Hessen plan to undermine the system by setting up exchange points where refugees can trade store vouchers obtained via the cards for cash.