By: Neal Fitzgerald, Strategic Product Manager, Payment Experiences at PSCU

National Recycling Day falls on November 15. On this day, also called America Recycles Day, the benefits of recycling for health, the environment and the economy are promoted by federal and local governments, as well as companies and organizations across the country. Recycling is one way to help mitigate climate change — a focus that is on the minds of many U.S. consumers. Recent surveys from the Pew Research Center found that 43% of Americans think they are doing too little to reduce the effects of climate change as an individual, and 69% are in favor of the U.S. working to become carbon neutral by 2050.

Consumers, especially those in the Millennial and Gen Z generational cohorts, support climate change activism. One way they “walk the walk” in their own lives is by focusing on sustainable and eco-friendly living. They shop for reusable green products, organic foods and reject large gas-guzzling SUVs in favor of electric cars. This focus on being environmentally conscious extends to how they would like to bank. PSCU’s 2023 Eye on Payments study found that seven in 10 younger Millennial respondents (70%) and six in 10 of Gen Z respondents (63%) report card design — including the material (i.e., metal) or the way in which it is made (i.e., sustainably) influences which card they choose to use. Only one in 10 of Baby Boomers (16%) reported the same. 

Credit unions must invest in and offer the solutions and payment offerings that the younger generations expect in order to ensure growth for the future. One way to do so is by offering payment cards made of sustainable and eco-friendly materials to help attract these eco-conscious Millennial and Gen Z consumers.

Materials matter 

Payment cards are made from several layers of plastic, and most are manufactured using plastic material called PVC, or Polyvinyl Chloride. This first-use PVC plastic, which has been around for 70 years, is made by combining fossil fuels and has an extremely negative impact on the environment. 

While some may scoff at being concerned about the seemingly insignificant amount of plastic used in a payment card (five ounces worth), an estimated six billion credit and debit cards are produced each year, typically using first-use PVC plastic. The resulting carbon footprint from that manufactured plastic creation is equivalent to about 900,000 tons of carbon dioxide being released into the atmosphere annually. While a project to recycle credit and debit cards has been introduced, change is needed to prevent cards from being manufactured with first-use PVC plastics in the first place. 

However, there are eco-friendly card materials available, which can be used as different layers of the payment card or can even replace the card entirely. The green materials can be incorporated into existing card designs, or can be used to create a new card look, that perhaps incorporates eco-friendly elements into the design to help display and promote its eco-friendliness. 

What are eco-friendly, sustainable cards made of? 

One option is recycled Polyvinyl Chloride (rPVC) plastic cards, which can contain up to 85% of upcycled post-industrial waste, such as plastic litter, bottles and containers from landfills. Recovered ocean plastic payment cards are made from plastic debris collected directly from the ocean. A subset of recovered ocean plastic is recovered ocean-bound plastic, which is made from upcycled plastics that have been diverted from entering the world’s oceans, shorelines and waterways, typically recovered within 50 kilometers of oceans in countries that lack adequate waste management infrastructure. 

Payment cards made from recovered ocean-bound plastics and rPVC have comparable strength, durability, resistance to brittle factors and the same amount of color retention as cards made with traditional, first-use PVC plastic. These high-quality, eco-friendly payment cards already have market acceptance. CPI Card Group, a prominent plastic manufacturer, has already produced over 95 million payment cards made with sustainable card materials. Bank of America announced that all of its cards will be made of at least 80% recycled plastic starting in 2023, Citi committed to a rollout of rPVC for its corporate cards in Europe, the Middle East and Africa (to then expand distribution worldwide), and Mastercard recently announced a mandate that all of their newly produced payment cards will be manufactured with sustainable plastic material, including recycled PVC, by 2028. That mandate is a major step toward removing first-use plastics from payment cards.

Benefits for credit unions

Offering payment cards made of eco-friendly materials will have a variety of benefits for credit unions, including:

• Reducing the negative impact to the environment. By offering eco-friendly solutions and products, your credit union will reduce its carbon footprint.
• Positively impacting your brand image. Showing your ethical side is something current and future members will support. As they see your credit union’s commitment, they will be more likely to stay engaged with and loyal to your credit union.
• Increasing your credit union’s sustainability credibility. Social responsibility influences buying decisions. Consumers are doing more business — including banking — with companies that reflect their core beliefs, and they are willing to pay a premium for a sustainable product. Consider implementing ways for members and non-members to safely and securely recycle old credit and debit cards as well.
• Attracting new cardholders. Use of eco-friendly payment cards is attractive to consumers, especially eco-conscious consumers. Offering eco-friendly payment cards gives consumers another reason to bank with your credit union instead of a different financial institution.
• Seizing a competitive advantage. The financial services and banking industry will keep being very competitive, especially as fintechs continue to enter the scene with new, innovative products. Offering eco-friendly cards is one differentiator from competitors, giving your credit union an innovative edge to grow and thrive.

While there typically is an increase in cost per sustainable card, the benefits of going green far outweigh it. Credit unions can offset this cost by bundling sustainable plastic payment cards with other eco-friendly initiatives, like reminding cardholders they can receive e-statements and e-newsletters instead of physical mail. In addition to reducing the use of paper material, your credit union will also benefit from the reduced postage expense, which could help to offset the cost of sustainable plastic payment cards.

If adjusting your credit union’s approach to sustainability seems too overwhelming, consider working with a fintech CUSO like PSCU or another provider to help. Offering payment cards made of sustainable materials, as well as the other innovative digital banking technologies that Millennials and Gen Z expect, will only strengthen your credit union’s appeal for the younger, more eco-conscious generations — the consumers who are the future of the credit union industry and of payments.

Neal Fitzgerald, Strategic Product Manager for Plastics, Credit Payment Experiences at PSCU. Neal has over 25 years of retail card product management and co-brand reward cards experience in the financial services industry.