Germany to Implement Nationwide Payment Card System for Asylum Seekers in 2025

The new system will replace regional cards, aiming to streamline benefits distribution and prevent misuse, but faces criticism over functionality limitations.

• Saxony and Brandenburg are set to phase in a unified payment card system for asylum seekers starting in early 2025, replacing region-specific cards.
• The cards will allow users to make payments at stores accepting Visa and withdraw up to €50 per month in cash for adults, with increased allowances for minors.
• Saxony's pilot program, launched in 2024, has already shown administrative cost savings, but critics highlight issues such as limited usability for online purchases and recurring payment problems.
• The initiative aims to curb potential misuse of benefits, such as overseas transfers, though there is no concrete evidence of widespread abuse among asylum seekers.
• Brandenburg's rollout is delayed until February 2025 due to technical adjustments, with officials working to finalize payment functionalities like transfers.

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