The sustainability shift rewriting rules in the payments industry

PLASTIC pollution is one of the most pressing environmental issues of today, as plastic offers sheer convenience, high availability and low prices. Only 9 per cent of all plastic is recycled, yet it is ubiquitous and remains the workhorse material of the modern economy. With plastic production expected to triple in the next 30 years, a fundamental shift must occur in the business models, behaviours and consumption models if we are to avoid a tremendous amount of environmental damage.

Spurred on by accelerating climate change, growing awareness around the urgency for environment preservation has led to a worldwide call for sustainable solutions. In 2018, Nielsen found that 81 per cent of global consumers felt it was paramount for companies to implement environmentally-friendly programmes, and 73 per cent would change their consumption habits to reduce their eco-impact. This mindset shift affects all industries – including payment solutions.

More sustainable solutions for payment cards

In a global survey conducted for IDEMIA in 2020, 92 per cent of respondents expected their bank to actively contribute to preserving the planet. In fact, 62 per cent would consider switching to an eco-conscious bank. It also found that 74 per cent of millennials globally would accept an additional monthly fee for a ‘green’ card. Environmental benefits aside, this has a significant economic impact as millennials are currently the world’s largest demographic and the primary source of global income, spending and wealth creation.