Merz calls for payment card: New plan to support refugees!

Merz calls for payment card: New plan to support refugees!

The discourse about the introduction of payment cards for refugees is gaining momentum in Germany. On July 15, 2025, Chancellor Friedrich Merz (CDU) announced at a meeting with the Bavarian cabinet on the Zugspitze that a nationwide uniform regulation was long overdue. In Bavaria, Saxony-Anhalt and other federal states there are already payment cards that enable cashless processing of state services. Merz emphasized that these cards should be anchored in the Asylum Seekers Benefits Act. The aim is to ensure that state funds do not flow to smugglers or people living abroad, but only benefit refugees.

The payment cards make it possible to make purchases in stores that accept Mastercard. Cash withdrawals are limited to 50 euros per month and person. However, online payments or transfers abroad are not possible, which some critics see as a restriction on the refugees' financial autonomy. There are also reports that refugees can purchase vouchers in supermarkets and exchange them for cash, which undermines the intended control.

Political support and criticism

The introduction of these payment cards also finds broad support at the political level. While Bavaria's Prime Minister Markus Söder (CSU) supports Merz's initiative, representatives of the traffic light factions (SPD, Greens, FDP) in the Bundestag also voted for the legal basis, which includes a change to the Asylum Seekers Benefits Act. The initiative aims to minimize the use of cash in government support so that transfers cannot be made to smugglers or relatives abroad.

But not everyone is convinced. Critics complain that the payment cards cause difficulties when used in rural areas. The Bavarian Interior State Secretary Sandro Kirchner sees the cards as an opportunity to limit irregular migration and relieve the burden on municipalities, while opponents fear that the participation of refugees will be restricted.

Installation and functionality

The payment cards work similarly to prepaid cards and do not require your own bank account. Corresponding models are already in use in federal states such as Thuringia and Lower Saxony. The cards are managed by the respective district administrations, which can ensure that credit is loaded or discharged or that the card is blocked if misused. However, there may be restrictions that vary depending on the region.

The measures were decided in November 2023 by Chancellor Merz and the state prime ministers after a working group was commissioned to develop a uniform model by the end of January 2024. In many cities such as Hanover or Leipzig, asylum seekers already receive their benefits on such cards, which can, however, also be designed flexibly by the respective administration in order to take the individual needs of the refugees into account.

The introduction of payment cards not only brings with it a new form of financial support, but could also reignite the discourse about the integration and support of refugees in Germany. It remains to be seen how the political and social discussion will develop further. The fact is that the issue of “payment cards” could play a central role in how we deal with refugees in the future.