From plastic cards and POS terminals to customer spending and energy for software, the payments industry has a large environmental impact. Issuers and acquirers continue to roll out innovative solutions that create less impact, promote conservation and attract customers.

Payments Has a Major Environmental Impact  

Paragon said the payment industry has a significant environmental impact, with nearly 4 trillion global payment transactions processed in 2024. From the production of plastic cards and energy consumption at data centres to inefficient multi-step credit or debit transactions, payments have a substantial carbon footprint. Production of 3.5 billion payment cards produces more than 500,000 tons of CO2e per year, Infineon reported, and up to 43 percent could be saved by replacing plastic cards with cards made from eco-friendly materials. 

Payments companies have developed solutions in recent years to address some issues. Digital wallets reduce the need for physical cards, for instance, which reduces plastic waste. A study by Mastercard found that digital payments could reduce carbon emissions by up to 50 percent compared to traditional cash transactions, Global Head of Consulting at Persistent Payments Sumit Arora noted, by reducing the need for physical resources such as cash, paper checks and paper statements.  Open banking enables more efficient financial services that enhance sustainability, and embedded finance can also be used to offer discounted rates or favourable terms for purchasing eco-friendly products. 

Consumer Demand Drives Eco-Friendly Solutions 

A key driver of faster change is demand by consumers for more eco-friendly products. Business Dasher found that 62 percent of consumers are willing to change their purchasing habits to help reduce environmental impact, for instance, and 22 percent say they have made major changes in purchases to be more environmentally friendly. Consultancy Simon Kucher found in its global survey that 64 percent of consumers rank sustainability as a top-three value driver across product categories, indicating that sustainability is transitioning from a “nice-to-have” to a standard evaluation/purchase criterion.  

The evolving consumer mindset is compelling businesses to adopt eco-friendly payment methods that align better with consumers’ values.  

Cards and Features 

On the consumer side, issuers have continued to offer more cards with eco-friendly solutions such as carbon footprint tracking and rewards for eco-friendly spending categories for several years. While cards launched recently include those features, the leaders are now working on community-building and using part of their revenue to fund environmental initiatives.    

One example is the Zero Sustainable Money App, launched in January 2025, which offers a free personal account and debit card with a GreenScore. The tool quantifies the ecological footprint of user spending and also delivers personalised recommendations to help users reduce their carbon footprint. Instead of offering traditional equity shares, Lion Herald said, Zero is offering 20 percent of the business’ value to its customers, aiming to build a community of like-minded, climate-conscious individuals. Early users can receive 400 free Community Share Options, giving them a stake in the company and in the collective mission to fight climate change. Co-founder Richard Theo told Lion Herald he believes that “collective action” is key to Zero’s success and that the company is building a movement that goes beyond just offering a banking product by creating a community committed to sustainability and fighting climate change. Zero also plans to integrate Open Banking to track spending across accounts, so customers can learn from others about how to make more sustainable financial choices. 

Another is Commons in California, which Common Sort said offers carbon footprint tracking based on spending habits. Along with personalised tips for reducing carbon emissions and impact tracking to see the reduction in carbon footprint, it offers community features for sharing experiences or tips and carbon offsetting to support certified carbon reduction projects.  

Issuers have also introduced new solutions whereby they use part of their revenue to fund eco-friendly initiatives.  

Triodos Bank in the Netherlands, which describes itself as an expert in sustainable banking with a mission to make money work for positive change, issues a debit card for customers with a current account. It says customers’ funds in the current account are used to finance things like renewable energy, sustainable farming, education, charities and social housing, and it says it does not finance fossil fuels, fast fashion, weapons, ammunition, tobacco or deforestation. 

Retreeb says it has built a network that puts impact at the heart of payments. By redistributing 33 percent of its transaction fees, it finances social and environmental projects at no cost to the customer. Retreeb financially supports the customer’s chosen cause every time they pay by QR code. Retreeb says paying with its card results in transactions with 50 times less energy consumption than a traditional bank card, due to its use of QR codes and blockchain technology. 

And Keewe focuses on decarbonising businesses’ international financial operations by offering an international payment solution for customers to start their ecological transition. Its Green Payments product allow customers to assess the carbon footprint of their international transactions, with the goal of reducing the costs and environmental impact of SMEs engaged in international trade. Customers can generate cash back to fund projects with an environmental impact, while also not paying extra fees on international transfers.   

POS Terminals  

Along with innovation on the issuing side, acquirers are continuing eco-friendly practices too.  

Consumers throughout Europe are prioritising sustainability and pushing retailers to adopt eco-friendly POS practices, technology specialist Bixolon explained. Merchants are choosing energy efficient hardware with an energy star rating and better packaging for hardware. Printing technology includes digital receipts and liner-less labels to reduce waste. 

PayNetEasy similarly said developers have designed more energy-efficient devices, including low-energy POS terminals and ATMs, that use less energy than traditional devices and can use renewable energy. Acquirers and merchants are also using artificial intelligence and machine learning or other technology to support environmentally conscious solutions and optimise the payment process, thereby reducing energy consumption.  

In the online world, Stripe Climate provides a payment processing solution that enables businesses to direct part of their revenue to help early-stage carbon removal companies or to pre-order a specific number of tons removed so they can meet a climate target or offer carbon removal to their own customers. 

New Solutions Have Greater Impact  

Issuers and acquirers are still continuing to roll out payments solutions that enable customers to track their carbon emissions, gain insights into how their spending affects the environment or receive tailored recommendations to reduce their environmental impact. More recent issuer solutions in particular go beyond individual change, though, by building communities to support environmental causes and using revenue to support conservation rather than just shareholders.  

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Author: Richard Hartung, Associate, Singapore, Payments Consulting Network

An experienced professional with over 20 years of expertise in the payments and consumer financial services industry, specifically in the Asia Pacific region. He has held various key roles in organizations such as Citibank, Mastercard, and OCBC Bank, and has established consultancy firm Transcarta to assist financial services companies with strategy, operations improvement, and market research.

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