Payment cards are part and parcel of a bank’s relationship with customers. Maya Tuyen Reisinger, product management director at G+D, explores how cutting waste will improve the customer experience.
Every organisation has a collective responsibility to incorporate measurable initiatives that demonstrate they are taking sustainability seriously.
Global natural resource consumption is predicted to increase 60% by 2060, although regulations like the Paris Agreement are binding signatories to limit the rise of global warming levels, compelling industry to take action.
The good news is that significant progress is already being made. For example, German development bank KfW offers financing for renewables, energy efficiency and sustainable transport, among other measures.
Other banks and fintechs are exploring where tangible changes can be made, such as products made from recycled plastics, plant-based plastic or other repurposed materials – particularly payment cards. Mastercard, for instance, has pledged to eliminate the use of virgin PVC, a non-biodegradable material, on payment cards.
Sustainability starts with a payment card
Forward-thinking companies are actively working to reduce the use of virgin PVC by issuing 100% recycled plastic cards or recovered plastic material cards. These recycled cards are well established and highly affordable, despite the common perception that sustainable products are more expensive. There are also 100% industrially compostable bioplastic cards, or plastics upcycled from islands, coastal communities and vulnerable marine ecosystems.
However, true sustainability means embedding an end-to-end approach, so banks and fintechs must also consider the full lifecycle. For example, how is the card being issued to customers?
Recycled and recyclable paper can be used in welcome packs for new cards, while faster and more efficient digital communications can reduce paper waste altogether. Customer PINs can also be sent digitally, minimising materials and transport emissions while enhancing the customer experience.
It’s important to look at the card’s end-of-life process for responsible disposal or recycling methods too.
Recycling expired cards
Issuing sustainable cards serves as a strong foundation for real environmental commitment that resonates with customers. Yet, as much as 91% of plastic isn’t recycled.
Banks and their partners have an opportunity to prioritise the collection and recycling of card products. There is no one-size-fits-all solution to the process, but there are ways it can be better facilitated for consumers who want to recycle their expired cards but don’t know how to do it.
One option is to return the expired card in an ATM or a drop-off box at a branch that can shred cards, ensuring that sensitive data cannot be copied or stolen. Alternatively, a secure mailing loop can be established to allow expired cards to be returned via post. Including reminders, postage-paid envelopes and tracking numbers can provide customers with everything they need to dispose of a card correctly.
But how does the actual recycling process work? The metals and plastics found in payment cards are usually separated and sorted, among other key steps. The plastic is then washed and melted into pellets to be used in the production of new products. For payment cards, rPVC (and PVC) is by far the most common material, and the recycled material is used in items such as pipes, flooring and traffic cones.
Overcoming barriers
Banks and fintechs can often struggle to incorporate end-of-life management programmes without the knowhow and expertise of a third-party organisation.
A central strategic partner can manage the necessary networks with these third parties, such as a merchant or cash-in-transit (CIT) company. CIT companies handle the task of collecting cards, such as through drop-off points.
As an example, Santander Bank recycle expired payment cards into furniture for the community, including benches and flower planters. The organisation also accepts cards from any bank, making recycling more convenient for consumers.
Diverse materials and complex card body structures can cause challenges in the recycling process itself. Initiatives from expert partners are underway to simplify the separation process between the chips, antennas and the card plastic to ensure these components can be re-used.
Plastic is robust and can undergo numerous rounds of recycling to be applied to different use cases.
A vital step towards authentic sustainability
Through these measures, banks and financial services organisations can make real progress to authentic sustainability and prove their commitment to the environment.
Collaborating with third-party partners and offering convenient recycling options empowers customers to make sustainable choices, ensuring that recycling concepts are both feasible and cost-efficient while being convenient for end users.
