90% of payment cards to use sustainable materials by 2029
Need grows for card recycling schemes
A new study from Juniper Research reveals that by 2029, over 90% of all payment cards shipped globally will be made from sustainable materials, up from less than 40% in 2024.
This rapid shift is driven by growing environmental concerns and the push for more sustainable banking practices. Sustainable materials now commonly used in payment cards include recycled polyvinyl chloride (PVC), bio-sourced PVC, recycled metals, and sustainably sourced wood.
The research underscores the urgent need for card manufacturers to support card issuers in transitioning to more eco-friendly solutions. Payment card issuers facing increased demand from environmentally conscious consumers must innovate to meet this trend. These greener card options will enhance the appeal of their products and bolster their Environmental, Social, and Governance (ESG) profiles, improving customer retention and attracting new users.
The study’s findings signal a clear market shift: card issuers that fail to adopt these materials may risk losing business to competitors prioritising sustainability.
The research also highlights the importance of card recycling schemes. Over the next four years, industry leaders must develop robust recycling programmes to ensure old cards do not end up in landfills, aligning with broader ESG goals. Card manufacturers, even those using sustainable materials in their products, must consider new recycling strategies to close the loop.
However, rolling out effective recycling programmes comes with its own set of challenges. As many traditional bank branches close in favour of digital-first banking models, card issuers must collaborate with third-party networks, such as retail locations or post offices, to set up accessible collection points for old cards.
Nick Maynard, the study’s lead author, explained, “The challenge lies not just in providing recycling infrastructure but in gaining consumer trust. Cards contain susceptible data, so card issuers must ensure that recycling processes meet stringent security standards.”
Additionally, educating consumers about the benefits and safety of card recycling will be critical for success.
As the payment card industry gears up for this sustainable transformation, stakeholders must work closely together to overcome logistical and security hurdles, all while maintaining customer trust and satisfaction. The push for greener payment solutions appears set to shape the future of the global payments landscape.
Featured image: Card manufacturers must consider new recycling strategies to close the loop. Credit: Rann Vijay
