Asylum seekers receive payment card assistance – MV offers an additional benefit

MV Taps Dutch Firm for Asylum Seeker Payment Cards

Mecklenburg-Vorpommern (MV) has selected Dutch corporation Yoursafe as their provider for asylum seeker payment cards. Interior Minister Christian Pegel, responsible for initiating the Europe-wide tender in January, commended Yoursafe's solution, aligning well with MV's expectations for implementing and boosting a payment card system for legal asylum seekers.

Pending logistical planning, asylum seekers residing in initial reception facilities may receive their payment cards within the next three months, adhering to the timeline. The card can be utilized at retail outlets, much like an ordinary giro card, without supporting international transfers.

Cash withdrawals of a stipend, paid monthly without fees, will also be available. Introducing the payment card is expected to reduce the complexity associated with making cash payments in various facilities.

The Council of Interior Ministers, on November 6, 2023, approved using a payment card for asylum seekers receiving benefits under the Asylum Seekers Benefits Act. Mecklenburg-Vorpommern and Bavaria established distinctive payment card solutions, while maintaining comparable conditions nationally. Federal states concluded a unified procurement process in January.

The Commission, established to oversee the implementation of the payment card system in Mecklenburg-Vorpommern, ensures Yoursafe adheres to the agreed terms. The Commission's role is crucial, especially following the payment card's approval, to ensure consistency in using the payment card system nationally.

Bonus Insights

The implementation of a payment card system for asylum seekers across Germany, including Mecklenburg-Vorpommern, is part of a more extensive national initiative aiming to manage asylum benefits more effectively. Benefits and implementation details include:

Benefits

1. Combating Abuse: The primary objective is to curb potential asylum benefits misuse, ensuring funds are spent on essential needs and not remitted back to the origin country.
2. Efficiency: The system aims to streamline benefit distribution and reduce administrative burden and potential fraud.
3. Transparency: It provides a clear account of transactions, facilitating monitoring of how asylum seekers spend their funds.

Implementation Details

1. National Implementation: The prepaid card initiative is a countrywide effort in Germany, with various federal states implementing it, such as Brandenburg.
2. Providers: Companies like secupay AG have been contracted to implement the system in multiple federal states.
3. Costs: One-time investment costs, operational costs including top-up fees, and card production fees apply.
4. Legal Framework: Amendments to the AsylbLG (Asylum Seekers Benefits Act) in May 2024 authorized granting benefits nationwide using a payment card system.

Administrative Simplification

1. Streamlined Distribution: The payment card eliminates the need for cash transactions, reducing mismanagement and abuse risks.
2. Real-time Monitoring: The card enables tracking of transactions, ensuring benefits are used as intended.
3. Fraud Reduction: Limitations on cash use decrease fraud opportunities, simplifying administrative tasks.