As the focus on environmental responsibility intensifies, the expectations from consumers toward brands involve active participation in addressing climate change. In response, credit card companies and banks are implementing measures to foster eco-friendliness within the payment sector, for instance, innovating a credit card app. Initiatives include the elimination of newly manufactured plastics, exploring alternative materials like metal, and, surprisingly, even considering corn starch.
Statista forecasts that nearly 30 billion physical payment cards will be circulating globally by 2023, signifying a significant volume of plastic in debit and credit cards. Historically, the payment industry hasn’t effectively tackled the environmental impact of this plastic, which can take over 400 years to decompose. However, there’s gradual progress being made to rectify this situation.
Recycled Plastics – The Norm
Giesecke + Devrient (G+D) and CPI Card Group are two major card manufacturers dedicated to eliminating single-use, non-recycled plastics from their card production processes.
- Consumer Preference and Response: A survey revealed that more than three-quarters of consumers expressed a preference for upcycled credit cards, given they maintain similar rates and features. In response, CPI introduced eco-friendly plastic card lines.
- CPI’s Earthwise Line: CPI’s Earthwise series comprises cards incorporating up to 85% recycled PVC, while their Second Wave line is entirely crafted from waste plastic diverted from entering the oceans.
- G+D’s Commitment: G+D has undertaken an even more ambitious goal through its Pledge 2030 program, aiming to eradicate 100% of virgin plastics from its card manufacturing processes.
- Environmental Impact: The utilization of recycled plastics in card manufacturing holds the potential to reduce CO2 emissions by up to 75%. However, despite being an improvement, recycled credit cards pose challenges when they ultimately reach landfills in significant quantities.
- Transition to Alternative Materials: Some companies are exploring alternatives to plastic altogether, aiming to mitigate the environmental impact posed by discarded credit cards in landfills.
Metal Cards – High Recyclability
The inception of metal credit cards dates back to 1999 with the launch of the American Express Centurion Card, crafted from sleek, black titanium. Initially exclusive and prestigious, this card set the trend as a coveted symbol of status. Presently, numerous major card issuers offer a range of metal credit cards, which, while once limited to elite products due to manufacturing costs, are now more accessible across various credit tiers.
Evolution in Materials
Contemporary metal credit cards encompass a variety of more cost-effective materials like stainless steel and aluminum. Despite the higher production expenses, the shift towards metal presents notable environmental advantages. Firstly, unlike plastic cards, metal cards do not release harmful chemicals into the environment during manufacturing or as they deteriorate. Secondly, the transition to metal offers a fresh avenue for recycling card materials.
Environmental Benefits
Collaborative efforts like the Delta Airlines and American Express partnership enabled Delta SkyMiles cardholders to procure cards fashioned from aircraft aluminum sourced from retired 747s in an Arizona desert aircraft graveyard. Beyond such unique instances, numerous possibilities exist for card manufacturers to recycle metals in more commonplace ways.
Recycling Opportunities
The adoption of metal in card manufacturing not only reduces environmental impact but also unlocks prospects for innovative recycling initiatives. This shift paves the way for exploring further ways to repurpose and recycle metals used in credit cards, contributing to sustainable practices within the industry.
Biodegradable Cards
Despite their extended presence in the market for over two decades, metal credit cards are not regarded as cutting-edge innovations. However, some companies are aiming to elevate eco-friendly credit cards by exploring unconventional materials, such as corn starch, to drive a new wave of sustainability.
Introduction of Polylactic Acid (PLA)
Emerging as a surprising alternative, Polylactic acid (PLA), derived from corn, serves as a compostable and biodegradable substitute for plastic. Historically used in various applications like packing materials and containers, PLA is now making its way into credit cards offered by banks such as UBS, Gateway, and Bank of New Hampshire.
Properties of PLA
PLA cards maintain durability while being compostable, necessitating commercial-grade composting facilities for breakdown. However, under suitable conditions, PLA can completely biodegrade in merely 12 weeks, a stark contrast to the 400 years taken by standard PVC products. This vast difference in degradation time is remarkable.
Cost Considerations
Notably, the cost of PLA has significantly decreased, making it a more viable option for banks and card manufacturers seeking to align with consumer expectations for environmentally conscious cards. As this material becomes more economically feasible, it may attract increasing interest within the industry as a means to fulfill eco-friendly demands.
Conclusion
Efforts to minimize new plastic waste and hasten decomposition are commendable, yet the inherent truth remains: as long as plastic cards exist, some adverse environmental effects persist. However, the era of physical credit cards appears to be waning, given the rising adoption of not only contactless payments but also cardless methods like digital wallets, mobile payments, and peer-to-peer transactions. As personal devices increasingly serve as payment solutions, a future might be imminent where companies transition away from cards entirely, potentially eradicating the industry’s plastic-related issues.