Presse
Publk and Visa simplify the payout of social benefits with SocialCard
Frankfurt am Main, 26.10.2023
The GovTech company Publk and Visa, a global leader in digital payments, are announcing the start of a new innovative solution for the digital payout of social benefits. The SocialCard replaces the previous payout practice for benefit recipients without a German bank account, who have so far received their benefits in the form of cash, checks and vouchers. The SocialCard is based on a conventional Visa debit card, is immediately usable and is managed on a prepaid basis. It can be issued in digital form for smartphones or as a physical card for wallets. Authorities can credit social benefits by SEPA transfer on the card. The resource-intensive cash or check issuance can be eliminated. This means that both the administrative burden for municipalities as well as the waiting times for beneficiaries can be significantly reduced. Additional hardware or software is not necessary which allows for a quick implementation: municipalities can start at short notice.
"The SocialCard makes an important contribution to providing refugees and other people in need by delivering aid as long as they do not have their own account," explains Joerg Schwitalla, founder and managing director of Publk GmbH. "Queuing at offices and banks is eliminated, social benefits are directly credited to the SocialCard."
Easy handling and large reach
The SocialCard is issued as a Visa Debit card and does not differ in design from other cards, for example, those issued by banks. This way, benefit recipients can pay for their purchases by card without stigmatization. In case of loss or theft, the card along with its balance can be blocked and transferred to a new card. With the SocialCard, cardholders can pay contactless at the checkout, withdraw cash at ATMs or at retailers*. Visa has a broad network of merchants in Germany with more than one million acceptance points. SocialCard holders can also pay there. This guarantees a high reach for the use of the SocialCard from the start.
*A selection of participating retailers can be found here.
Immediately applicable at the municipal level and scalable nationwide
With the SocialCard, municipalities have a solution that seamlessly docks onto the existing structures of the municipalities and makes the discussion about alternatives to the previous payout practice unnecessary. The solution is maximally flexible, scalable nationwide, and can easily be adapted to individual requirements in terms of functionality at the municipal, state, and federal level. "With Visa as a strong technology partner at our side, we can significantly relieve the public administration. Everywhere where cash has been used so far, the SocialCard can simplify the payout - for the municipality and the benefit recipients alike. Thus, the SocialCard is a milestone on the way to the digitization of payout processes in authorities," says Joerg Schwitalla, founder and managing director of Publk GmbH.
"This project is pioneering for German municipalities. It shows how the digitization of the administration can be effectively and quickly advanced with existing technologies. With our global know-how in the digitization of social benefits payouts and other government funds to citizens, we can support governments and authorities in the digital transformation, promote innovations, and expand access to financial services," says Ute König-Stemmler, Head of Business Development Central Europe at the payment technology company Visa.
About SocialCard
The SocialCard digitizes the payout of social benefits. It is a "cash and cash check equivalent". The SocialCard is issued as a Visa debit card and allows benefit recipients to receive their social benefits quickly and easily. It offers them a dignified participation in everyday processes. At the same time, it reduces the administrative burden in municipalities. Wherever cash or checks have been used so far, the SocialCard can simplify and streamline the payout by digitizing cash processes.
About Publk
Publk specialises in digitising payments in the public sector that were previously made in cash or by cheque. Publk knows the needs of local authorities with regard to payments and has developed a solution with the SocialCard that is optimally tailored to all requirements as well as legal and regulatory requirements.
About Visa
Visa is a leading global digital payment network that enables transactions between consumers, merchants, financial institutions and governments in more than 200 countries and regions. Our innovative, reliable and secure payment network connects individuals, businesses and economies and makes it easier for them to grow successfully. We are shaping the future of payments in the belief that an inclusive economy moves everyone forward. You can find more information on our website.