The rollout of a payment card system intended for refugees in North Rhine-Westphalia (NRW), Germany, is facing significant hurdles and uneven adoption, according to recent reports. A survey conducted by the regional municipal associations reveals that approximately one-third of the region’s municipalities intend to implement the card, another third will not and the remaining third are still undecided.
Andreas Wohland, a deputy mayor for the NRW Municipal Associations, expressed concern over the current situation, stating that the low participation rate sends a problematic signal.
State Minister for Refugees Josefine Paul has defended the current opt-out framework, which allows municipalities to independently decide on the card’s implementation, emphasizing the importance of local autonomy and democratic processes. She affirmed the government’s commitment to allowing communities to continue utilizing existing systems.
However, practical implementation issues remain. A key feature – the ability to make electronic payments via SEPA transfers – is currently unavailable in NRW. The Ministry of Refugees confirmed that this function is still undergoing legal review and is not yet active, preventing refugees from using the card for direct transfers or bill payments.
The initiative has drawn sharp criticism from opposition parties. Lisa-Kristin Kapteinat, deputy parliamentary group leader for the SPD, described the card system as a “complete failure” highlighting a disconnect between its initial promotion as a comprehensive solution and its actual performance. She advocated for the system’s abolition.
The NRW Refugee Council has also voiced strong reservations, arguing that the card represents a form of “deterrence policy” at the expense of refugees, administrative staff and taxpayers. They questioned the effectiveness and cost-efficiency of the program.
