Initially, the German state will issue these cards to new arrivals in reception facilities as part of a pilot project.

German authorities said that a similar card will be introduced across the whole country if the pilot project in the state is proven to be successful.

Under the project, all freshly arrived refugees in Hamburg are eligible for this special card known as SocialCard.

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They will not need to visit a cash point or public authority to receive payment, efficiently providing the amount through their card.

It is pertinent to mention that the authorities will issue the card to adults using which they will receive a credit of €185 each month. The benefits for children of refugees will be credited to the cards of their parents.

By the introduction of the card, Germany aims to make sure that refugees are not able to transfer their benefits to relatives in their home countries.

The move came after German lawmakers raised concerns regarding refugees transferring the benefits to their relatives in their home countries as they stressed that the country needs to put an end to such a practice.

As such, refugees will only be able to use it in stores as well as at service providers that accept card payments for buying needed items.

Those who hold the SocialCard will be able to withdraw up to €50 per month for themselves and €10 for each child.