Dr. Carsten Wengel, the head of global sales and distribution for G+D’s card and digital payment operations, recently shared valuable insights with Finextra regarding the evolving landscape of sustainable cashless payment options within the financial services sector.
In a recent dialogue with his team about sustainable banknotes, G+D highlighted the advancements in creating environmentally responsible currency and discussed how similar innovations are shaping the future of payment cards.
Dr. Wengel confidently asserts that the demand for payment cards will expand globally, emphasizing the urgent need for sustainability in card payments. He remarks, “There is a global momentum among financial service institutions to adopt more sustainable practices, which is truly encouraging. This shift not only aims to reduce waste through recycling but also illustrates a broader reconsideration of payment methods within the financial services industry. Many banks are now introducing initiatives that link account ownership to environmental projects; for instance, some pledge to plant a tree for every fifth transaction processed.”
Drawing parallels between the financial services sector and societal progress, Dr. Wengel notes that many communities are actively seeking solutions to tackle climate change. He believes the implications of sustainability transcend mere profit considerations, highlighting a collective commitment to environmental stewardship.
G+D operates with a network of over 700 banks worldwide, annually producing approximately 500 million cards, of which 10% are made from recycled materials. The company has ambitious sustainability goals, aiming for 40% of its cards to be recycled by 2025 and to phase out the production of virgin plastic cards entirely by 2030. Dr. Wengel expresses confidence in achieving these targets ahead of schedule.
The company currently offers three types of sustainable payment cards. The first is composed of 100% recycled PVC, produced entirely from recycled materials without any reliance on oil. The second, a PLA card, is biodegradable and made from corn-starch-based components, eliminating plastics entirely. Lastly, the ocean plastic card incorporates materials gathered from beaches and seas to support initiatives like beach clean-up efforts in collaboration with Parley for the Oceans.
Highlighting the societal impact of such initiatives, Dr. Wengel refers to a recent project launched by the Bank of Tahiti to address local plastic waste issues, linking card issuance to broader environmental efforts that resonate deeply with customers.
In Barcelona, G+D operates a manufacturing facility powered entirely by photovoltaic energy. Several major banks in Europe, Latin America, and Canada are exploring the adoption of 100% recycled cards, joining G+D’s commitment to sustainability.
When asked to identify the most sustainable cashless payment method, Dr. Wengel emphasized the significance of energy consumption as a metric. While cashless payments are often regarded as more environmentally friendly, they too have an energy footprint throughout the transaction process.
Emerging digital wallet solutions now include features that track the carbon footprint associated with digital transactions, empowering consumers to make informed decisions about their environmental impact.
Dr. Wengel brings attention to the staggering energy demands of cryptocurrencies, pointing out that Bitcoin’s energy usage is comparable to that of an entire country, like Ireland. This highlights the necessity of developing innovative software and applications to enhance the sustainability of digital currencies.
He reinforces that sustainability is not merely a fleeting trend but a fundamental imperative for the industry. “The climate crisis demands ongoing commitment and action from the financial services sector—whether it be fintechs, neobanks, or traditional banks. This industry can significantly contribute to fostering a more carbon-neutral future.”
In conclusion, Dr. Wengel expresses optimism about the future direction of the financial services industry, noting an increasing number of leading financial institutions are establishing roadmaps towards net-zero emissions. The movement towards a sustainable economy signifies a transformative journey that will strengthen the connection between society and financial services, aligning with sustainable development goals for environmental protection and preservation.