Bersenbrück, 31 January 2024 – Leipzig is one of the first cities in Germany to introduce the SocialCard for people without bank accounts, such as homeless people and refugees. The payment solution, developed by Publk GmbH, will replace the resource-intensive distribution of cash and cheques in future. A credit-based Visa debit card will be issued, which will be accepted by over a million retailers in Germany. The rollout in Leipzig is scheduled to be completed by 30 June 2024.
The monthly payment of social benefits places a heavy burden on many administrations. As many of those entitled to benefits do not have a German bank account, benefits have previously been paid out in cash on site. Torsten Bonew, First Mayor and Deputy Mayor for Finance of the City of Leipzig, sees the introduction of the SocialCard as an important step for the city: “This digital solution gives people access to cashless payment transactions. For us, the decision to introduce the payment card is also an effective way of reducing the administrative burden and workload in social welfare offices. The previous practice of issuing cash cheques tied up a huge amount of staff capacity. I am delighted that we can now significantly ease the burden here.”
SocialCard simplifies existing processes
The principle behind the payment card is straightforward: the SocialCard is issued by Visa as a credit-based debit card and can be used immediately. It can be issued in digital form for smartphones or as a physical card. The responsible authority credits the social benefits to the card on a monthly basis via SEPA transfer.
Joerg Schwitalla, founder and managing director of Publk, emphasises the flexibility of the SocialCard: “Every city is unique and has different requirements for a payment card. It must also be possible to respond quickly to legal decisions at any time. That’s why we designed the card so that we can easily adapt it to specific wishes and requirements.
With Visa, we also have a reliable partner at our side, which means we can guarantee high acceptance of the card in shops.”
Advantages for administration and beneficiaries
No additional effort is required for implementation, and there is no need to purchase additional hardware or software. The authority receives an individual IBAN and transfers social benefits directly to the respective card. Since there is no longer any need to appear in person at the office on a regular basis to receive social benefits,
beneficiaries no longer have to endure long waiting times – either at the authority or when collecting their payments at a local bank branch. At the same time, the workload for staff is reduced, freeing them up for other tasks. Thanks to the neutral card design, they can now pay without stigma in any shop that accepts Visa cards or withdraw cash from ATMs. The card can also be used for online purchases. The payment solution also offers greater security. If the card is lost or stolen, it can be blocked and the credit transferred to a new card.
About the SocialCard
The SocialCard digitises the payment of social benefits. It is a “cash and cheque equivalent”. The SocialCard is issued as a Visa debit card and enables benefit recipients to receive their social benefits quickly and easily. It thus offers them dignified participation in everyday processes. At the same time, it reduces the administrative burden on local authorities. Wherever cash or cheques have been used up to now, the SocialCard can simplify and streamline payments by digitising cash processes.
About Publk
Publk specialises in digitising payments in the public sector that were previously made in cash or by cheque. Publk understands the payment needs of local authorities and has developed SocialCard, a solution that is optimally tailored to all requirements and legal and regulatory specifications.
Press contact
Fink & Fuchs AG
Simone Motschmann
Tel.: 0611-74131-929
Email: socialcard@finkfuchs.de