Frankfurt am Main, 26 October 2023 – GovTech company Publk and payment technology company Visa are launching an innovative solution for the digital payment of social benefits. The SocialCard replaces the previous payment method for benefit recipients without a German bank account, who previously received their benefits in the form of cash, cheques and vouchers. The SocialCard is based on a conventional Visa debit card, can be used immediately and is managed on a credit basis. It can be issued in digital form for smartphones or as a physical card for wallets. Authorities can credit social benefits to the card via SEPA transfer. The resource-intensive distribution of cash or cheques can be completely eliminated. This significantly reduces both the administrative burden on local authorities and waiting times for benefit recipients. No additional hardware or software is required, which simplifies implementation: local authorities can get started at short notice.
“The SocialCard makes an important contribution to providing refugees and other groups of people who receive state benefits with temporary assistance as long as they do not have their own bank account,” explains Joerg Schwitalla, founder and managing director of Publk GmbH. “There is no need to queue at government offices and banks; social benefits are credited directly to the SocialCard.”
Easy to use and wide reach
The SocialCard is issued as a Visa debit card and is no different in design from other cards issued by banks, for example. This allows benefit recipients to pay for their purchases by card without stigma. If the card is lost or stolen, it can be blocked and the credit balance transferred to a new card.
With the SocialCard, cardholders can make contactless payments at shop checkouts and withdraw cash from ATMs or retailers*. Visa has a broad network of more than one million acceptance points in Germany. SocialCard holders can pay at all of these locations. This guarantees a high level of coverage for the SocialCard right from the start.
Immediately usable at the municipal level and scalable nationwide
The SocialCard provides local authorities with a solution that fits seamlessly into existing local structures and eliminates the need for discussion about alternatives to the current payment practice. The solution offers maximum flexibility because it can be scaled nationwide and easily adapted to individual requirements in terms of functionality at local, regional and national level.
“With Visa as a strong technology partner at our side, we can significantly reduce the burden on public administration. Wherever cash has been used up to now, the
*A selection of participating merchants can be found here: Cash Service| Visa
SocialCard can simplify payments – for local authorities and benefit recipients alike. This makes the SocialCard a milestone on the road to digitising payment processes in public authorities,” says Joerg Schwitalla, founder and managing director of Publk GmbH.
“This project is groundbreaking for German local authorities. It shows how existing technologies can be used to drive forward the digitisation of public administration effectively and quickly. With our global expertise in digitising the payment of social benefits and other government funds to citizens, we can support governments and public authorities in their digital transformation, promote innovation and expand access to financial services,” says Ute König-Stemmler, Head of Business Development Central Europe at payment technology company Visa.
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 the SocialCard, a solution that is optimally tailored to all requirements and legal and regulatory specifications.
About Visa
Visa is a leading global digital payments network that connects consumers, merchants, financial institutions and governments in more than 200 countries and territories. Our innovative, reliable and secure payment network connects individuals, businesses and economies, helping them to thrive. We are shaping the future of payments with the belief that an economy that includes everyone moves everyone forward. For more information, visit our website at visa.de.
Press contact
Fink & Fuchs AG
Simone Motschmann
Tel.: 0611-74131-929
Email: socialcard@finkfuchs.de