After German state leaders mostly agreed on a new national norm to be introduced this summer, Germany will now send asylum seekers at least some welfare benefits on pre-loaded cards instead of cash.
A few German politicians have brought up the issue of migrants sending welfare funds back to friends or family back home, which is partially why the switch was implemented.
Additionally, it ought to simplify benefit distribution and lessen the administrative load on local government officials.
Fourteen of Germany's 16 federal states agreed on the new card format, according to Boris Rhein, the premier of the western state of North Rhine Westphalia and the co-chairman of the committee that brings together all 16 state premiers to coordinate policy.
People who have applied for asylum in Germany are eligible to receive certain welfare benefits as well as special support in the event of serious illness or pregnancy.
The two other states, Bavaria and Mecklenburg-Vorpommern, also intend to introduce a card for migrants but will pursue their own standard.
Rhein argued that introducing a payment card to replace cash benefits would help reduce the incentives for illegal migration to Germany.
"We are reducing the administrative burden on local authorities, preventing the possibility of transferring money from state support to home countries and thus combating the inhumane crime of human smuggling," he said.
Rhein said the the cards should be usable for a wide range of payments, but will not function abroad. He also said that card-to-card transfers and other transfers in Germany and abroad are also not planned.