Card instead of cash: 14 federal states have agreed to introduce a payment card for asylum seekers – two are going their own way. The countries expect a lot from this. What do experts say about this?
Back in November, the prime ministers of the federal states, together with Chancellor Olaf Scholz, decided to introduce a payment card for asylum seekers. A joint procurement process is now expected to be completed in 14 federal states by the summer. Bavaria and Mecklenburg-Western Pomerania also want to introduce the card, but go their own way when it comes to issuing it.
The concept is: Instead of cash, asylum seekers receive a credit-based card with a debit function that they can use to pay for their everyday expenses. Each federal state can decide for itself on the amount of cash and other additional functions, but the technical requirements for the payment card should be the same in all states.
The payment card will only work in Germany, not abroad. In some federal states, their use could even be restricted regionally. Since it is balance-based, the card cannot be overdrawn. Transfers are excluded.
High expectations of the payment card
The Prime Ministers have high hopes for this. “With the introduction of the payment card, we are reducing the administrative burden on municipalities, preventing the possibility of transferring money from state support to the countries of origin, and thereby combating inhumane smuggling crime,” says Hesse’s CDU Prime Minister Boris Rhein, who is currently chair of the Prime Minister’s Conference.
Lower Saxony’s head of government, Stephan Weil, also points to lower administrative burdens on municipalities. “With a payment card, cash payments to asylum seekers are largely unnecessary,” said the SPD politician. “At the same time, we want to make it easier for people with the prospect of staying to take up regular work. They should get out of receiving transfer benefits as quickly as possible.”
“No decisive pull factor”
The payment card definitely has the potential to simplify the admission process and speed up bureaucratic processes, says political scientist Hans Vorländer, who is currently chairman of the Federal Government’s Advisory Council for Integration and Migration. However, according to the council’s expectations, this will not change much in terms of arrival numbers.
“We know from research that social benefits do not represent a decisive pull factor,” says Vorländer when asked by tagesschau.de with. Asylum seekers have other priorities. “When deciding on a destination country, what is important is a stable environment, your own professional opportunities and personal networks, such as family members or friends who can support the refugees.”
Payment cards would therefore not fundamentally influence migration to Germany, says Vorländer. “However, they may have an impact on the number of follow-up applications for asylum.” There are no figures for this yet; this will only become apparent with implementation.
“Do not expect any detectable effects”
“This fits into the debate about pull factors and excessive social benefits,” says social scientist Marcus Engler tagesschau.de. He researches German, European and global refugee and migration policy at the German Center for Migration and Integration Research.
The argument that incentives to flee can be reduced through lower social benefits has been raised again and again for 30 years. “But there is no reliable evidence that it is fundamentally the case that the level of social benefits has a significant influence on the decision to flee to Germany.”
The switch to payment cards is therefore symbolic politics, says Engler. “Many of my colleagues do not expect the introduction of these cards to have any demonstrable effects on refugee movements to Germany.”
In the end, it all comes down to the details; not all payment cards are the same. “Depending on the design, it can be a relief for the administration and also for the asylum seekers. You can only evaluate that when you see the concrete design.”
“Clearly a discrimination program”
“What has now been agreed is clearly a discrimination program,” says Andrea Kothen, a speaker at Pro Asyl tagesschau.de. “The motive is clear: it should deter people from coming to Germany.” Politicians claim to be able to reduce the number of asylum applications. But that won’t happen.
Kothen classifies the payment card as a questionable measure because of the deterrent motive. The Federal Constitutional Court ruled in 2012 that human dignity should not be relativized for migration policy reasons. The federal states remain obliged to design the measure in a non-discriminatory manner – or to forego the payment card altogether.
Pilot projects have already started
The payment card has already been introduced in some municipalities, such as in Ortenaukreis in Baden-Württemberg and in several districts in Thuringia.
In Greiz, Thuringia, district administrator Martina Schweinsburg has already taken stock after just over a month: there is less administrative work, satisfied retailers and a high level of acceptance among the population, according to the CDU politician.
There has been a pilot project in the district since December with initially 29 asylum seekers. The card is also largely accepted by them, said Schweinsburg. There are a few complaints because the card is only valid in the Greiz district. The model project is now to be expanded to include all approximately 750 asylum seekers in the district. Refugees from Ukraine are exempt from this.
The Thuringian Refugee Council criticizes the measure. There are significant restrictions for those affected. Although you could pay in supermarkets, there would be problems at the hairdresser’s, in smaller shops or when buying a ticket to Germany.
“With the low benefit rates, those affected now have to laboriously juggle where they can use the card and how they can meet payment requests when the cash amount has been used up,” said Ellen Könneker from the Thuringian Refugee Council MDR.
Bianca Schwarz, tagesschau, January 31, 2024 2:50 p.m