Overview

• Germany is introducing prepaid cards to replace cash benefits for asylum seekers, aiming to prevent misuse and streamline benefit distribution.
• By mid-April, nine municipalities in Hesse issued around 3,300 cards, but cities like Frankfurt and Kassel face delays due to software incompatibilities.
• The Fulda district successfully rolled out 500 cards by the end of March, reporting a smooth implementation process.
• Rhineland-Palatinate has been using the cards in all six reception centers since mid-March, with restricted withdrawal limits and usage for essential payments.
• Municipal associations are pressing for federal and state governments to fully cover implementation and operating costs, citing significant administrative burdens.