Two years after the decision to introduce the Bezahlkarte, a payment card for asylum seekers, across Germany, the Workers' Welfare Association (AWO) has raised serious concerns about the system's impact. The welfare organisation said on Friday that the card leads to significant discrimination against asylum seekers in everyday life and hampers their ability to participate in society.
Rather than simplifying administrative processes as intended, the Bezahlkarte has created fresh obstacles, the AWO said. Cash withdrawals are severely limited, bank transfers are often impossible, and the card is frequently not accepted at points of sale.
The Bezahlkarte allows asylum seekers to pay for everyday goods and services such as groceries. However, the ability to withdraw cash is restricted, and transfers abroad are meant to be blocked entirely. The stated goals behind the system are to reduce incentives for people to come to Germany solely for social benefits and to prevent payments to smuggling networks.
The Bundesrat, Germany's upper chamber of parliament, gave final approval for the introduction of the Bezahlkarte in late April 2024. However, neither federal states nor municipalities are legally required to implement it.
For those affected, the Bezahlkarte means less flexibility, reduced autonomy, and additional stress when managing daily expenses, the AWO warned. The consequences are especially pronounced for children and families. School fees, club memberships, and recreational activities often cannot be paid through the card without complications. As a result, social participation fails not because of a lack of willingness, but because of the way the system has been designed.
"The Bezahlkarte does not change the level of benefits, but it changes the ability to use them," said AWO board member Marvin Deversi. "That has direct consequences for people's daily lives."
The AWO also noted that the expected reduction in administrative burden has not materialised. Counselling centres report additional workload due to the need for explanations, individual case reviews, and recurring technical issues with the card system.
From the AWO's perspective, the problems go beyond practical inconveniences. The Bezahlkarte establishes a model that ties social benefits for specific groups more tightly to control mechanisms, the organisation argued. This raises a fundamental question about "whether such mechanisms could also be applied in other areas of social security in the future."
Benefits must be structured in a way that genuinely enables daily life rather than making it more difficult, the welfare association demanded. This includes reliable access to cash, workable payment options, and real decision-making freedom for those affected.
Instead of "restrictive measures," what is needed are "political measures that strengthen inclusion, social participation, and the empowerment of refugees," AWO board member Deversi said, "with non-discriminatory access to the labour market, quality education and childcare services, and reliable advisory structures."
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