Germany is expanding its government payment card program beyond refugees to include unemployed people without a bank account. What started as a way to distribute asylum benefits is now extending to broader welfare payments for citizens locked out of traditional banking. The solution is powered by SocialCard, a Visa debit card provider that already empowers 14 states with the refugee card (EFR).
Rolling out across the states
While 14 states use SocialCard for the refugee cards, two states (Bavaria and Mecklenburg-Vorpommern) opted for other providers. But the cards work basically the same: monthly benefits are credited as a "top-up" rather than cash or bank transfer. Withdrawals are limited, and the money can only be spent within Germany on living expenses.
Administrative benefits for authorities
The administrative shift is substantial. Instead of government employees manually handing out cash every month, they credit the cards. It's a time-saver that lets staff focus on casework and support rather than logistics. Fewer people stuck in payment cycles, less stress on frontline workers, and better resource allocation for the authorities.
Fintech for manual processes
This isn't embedded finance in the traditional sense; there's no non-financial product wrapped with financial services. But it's a telling example of how fintech solutions can transform areas that were previously stuck in manual, cash-based workflows.
