Pilot project to introduce a payment card for refugees in Saxony

A pilot project for the gradual introduction of a payment card for refugees will start in Saxony's districts in April. "We quickly found a coordinated procedure with the districts," said Interior Minister Armin Schuster (CDU) in a statement on Monday. The majority of districts will therefore start using the card on April 1. The smooth transition to a later joint payment card for the entire state is guaranteed.

In addition, the framework conditions of the payment card system in the pilot project are designed in such a way that it will later be transferred to the nationwide version, according to the press release. According to the information, the card is topped up either monthly or every two weeks, and cash can be withdrawn once a month with an amount of 50 euros. The card can initially be used throughout the state, but can later be restricted to zip code areas. It will not be possible to transfer money or use the card abroad.

The federal government decided on Friday that the planned payment card would be backed up by a federal law. This involves a federal regulation for the payment card that the federal states are introducing for asylum seekers. In future, part of the state benefits for asylum seekers is to be provided as credit on this payment card. The card is intended to prevent asylum seekers from transferring money to people smugglers or to their family or friends abroad.

The specific design is still unclear in many places. The tendering process for the card is still ongoing. At the end of January, 14 out of 16 federal states - including Saxony - agreed on a joint tender process for the introduction of a payment card for asylum seekers, which should be completed by the summer. Bavaria and Mecklenburg-Western Pomerania are going their own ways, but also want to introduce a payment card.