CIOInsider India Magazine
Revolutionizing Card Payments: Sustainability with Every Swipe
Naresh Rao, the Vice President and Sales Head of Issuance Products at Giesecke & Devrient India Pvt Ltd, has a background that includes previous positions at both Giesecke & Devrient India Pvt Ltd and Venture Infotek Global Pvt Ltd. He possesses a strong skill set encompassing Pre-sales, Payment Systems, EMV, Vendor Management, Smart Cards, and additional areas.
India’s growing digital economy feeds into its burgeoning fintech sector. According to a PwC study, credit and debit cards are among the most popular payment methods for online retail transactions in India. The firm found that credit card transactions alone amounted to over INR4.10 trillion from 2023 to 2024, a 47 percent year-on-year increase.
The large number of consumers results in many cards being issued and discarded annually. A study by the University of Leeds found India is generating over 10.2 million tonnes per year. Undoubtedly, credit and debit cards contribute significantly to this growing issue, highlighting the urgent need for card sustainability.
The good news is that India’s plastic recycling market is similarly on the rise, having achieved a market size of $ 2.18 billion in 2024, and a projected compounded annual growth rate (CAGR) of 10.75 percent through 2030, according to Research and Markets.
The Green Revolution in Banking
As the financial sector and consumers increasingly prioritize sustainability, aligned with the nation's efforts to achieve its sustainability goals, transitioning to biodegradable and recycled materials to create eco-friendly payment cards is only natural.
For example, Mastercard as well as G+D are both committed to transitioning new plastic payment card to sustainable materials as part of its Sustainable Card Programs. Their objective is to replace the use of virgin PVC in card manufacturing
with greener alternatives such as recycled plastics and bio-sourced plastics.
Card Lifecycle Sustainability
Naturally, the adoption of eco-friendly payment cards requires a comprehensive lifecycle strategy that minimizes environmental impact from production to disposal. It begins with sustainable production via the use of recycled and sustainable materials for both the cards themselves and the packaging it comes in. Next, financial institutions can implement digital PINs and digitize all communications, which limits the need for physical materials. Also, the loop can be closed by implementing a recycling mechanism for expired cards through ATMs or drop-off points, thereby preventing them from ending up in landfills.
Increase Consumer Awareness and Participation
Of course, this shift would be most effective when consumers are on-board. Issuers can get their customers involved by educating them about the benefits of eco-friendly cards, proper disposal methods such as shredding, and offering incentives for participation.
Infrastructure Challenges and Opportunities for Innovation
With that said, the recycling infrastructure needs to be up to par to handle this shift towards more recycling. In India, the limited number of recycling facilities may pose a significant hurdle to card recycling initiatives. The country’s financial sector would need to engage expert third-party collaborators to improve upon the current infrastructure to support future plans.
To contribute to a greener future, Indian banks and fintech companies could prioritize eco-friendly practices such as the adoption of sustainable payment card options
In the meantime, banks and financial institutions can partner with existing recycling firsts and cast-in-transit companies to simplify the logistics of recycling expired payment cards. Leveraging the expertise of a partner can help companies overcome certain challenges such as a lack of resources and compliance issues. It’s also a great opportunity for financial businesses to promote the economic benefits of reusing materials from expired cards to create a myriad of other objects like traffic cones, flooring, and furniture.
Also Read: Technologies Transforming Financial Service Industry
The Path to a Sustainable Future
To contribute to a greener future, Indian banks and fintech companies could prioritize eco-friendly practices such as the adoption of sustainable payment card options. This commitment aligns with the nation’s ambitious climate goals, such as achieving a 33-35 percent reduction in carbon intensity by 2030 as outlined in its Intended Nationally Determined Contributions.
Through eco-friendly practices, the entire finance ecosystem can not only contribute to a healthier planet but also enhance its reputation and attract environmentally conscious customers.
