The Huge Potential of Card Recycling in Banking | G+D and Mastercard | FF Virtual Arena #348

Increasing numbers of banks are releasing payment cards made of recycled plastics, but how do you get customers involved even further in the sustainability journey? 

Our latest Virtual Arena explores that challenge. We find out how banks can recycle expired payment cards, and involve the end-customers for the benefit of the local community.

Joining us are industry leaders Maya Reisinger from G+D and Joe Pitcher from Mastercard to talk about the environmental benefits and challenges of card recycling, and the need for collaboration to scale impactful solutions.

Watch this insightful conversation to find out more about…

• How recycling could drastically reduce plastic waste from billions of cards annually.
• How Mastercard are working to address cost, security, and expertise gaps in recycling programs.
• The exciting technology G+D are working on to help banks showcase ESG commitments effectively.

What is Card Recycling?

Of course, first things first, it was important to know what card recycling entails. Maya Reisinger, who is Product Management Director of the Convego Beyond portfolio at G+D, introduced this as a method of repurposing expired payment cards instead of discarding them in landfills. She emphasized the flexibility in this approach, noting that some banks integrate recycling into their ESG commitments without publicizing it, while others use it as a tool for customer engagement. G+D are committed to helping banks be more sustainable with a number of focused offerings. 

Joe Pitcher is Vice President of the sustainable cards program at Mastercard & also happens to be Chair of the Greener Payments Partnership, so he made for an ideal contributor to this conversation. He elaborated, describing card recycling as a shift from traditional disposal methods to redirecting these materials into reusable streams. It’s important of course to ensure consumers and institutions are clued up on sustainable practices and mentioned Mastercard’s research into advanced recycling methods, such as chemical recycling, to further innovate in this space.

Why is Card Recycling Worth Pursuing?

Both speakers stressed the environmental and symbolic value of card recycling. Reisinger explained that recycling aligns with the industry’s broader sustainability goals, reducing waste and the carbon footprint associated with virgin plastic production. 

Pitcher quantified the potential impact, noting that recycling even a fraction of the billions of cards produced annually could eliminate significant amounts of plastic waste. Just think, there were 17.45 billion credit, debit, and prepaid cards in circulation worldwide as of the end of 2023. That’s a lot of plastic. He framed these efforts as small but crucial steps towards sustainable goals, signaling the banking industry’s commitment to sustainability.

The Challenges Facing Banks in Card Recycling

Implementing card recycling programs presents hurdles for banks, including concerns over data security, cost management, and finding the right recycling partners. Pitcher pointed out that many banks lack expertise in recycling, making it difficult to know where to start. Mastercard has addressed this by partnering with TerraCycle and creating scalable programs to simplify participation and reduce costs.

Reisinger added that banks often struggle to allocate resources to such initiatives, as recycling is not their core focus. G+D helps by tailoring solutions to individual banks’ needs, from secure card collection to partnerships with local recyclers. A partnership they have with Santander are an example of this, where G+D manages card shredding and recycling whilst the bank can document compliance with ESG standards.

A Shared Vision for Sustainability

Both Reisinger and Pitcher highlighted the importance of collaboration in overcoming barriers and driving scale. Pitcher emphasized the role of economies of scale in making recycling programs more cost-effective, urging banks to pool efforts under unified programs. Reisinger reinforced the need for external expertise, noting that G+D leverages its global partnerships and experience to streamline processes for banks, making recycling programs feasible and impactful.

The discussion also touched on the broader sustainability landscape. G+D is the first payment card provider to pledge the end of using virgin plastic in payment card products by 2030. In parallel, Pitcher noted Mastercard’s mandate to eliminate first-use PVC from card production by 2028, encouraging the use of recycled or bio-based materials. Reisinger also discussed G+D’s lifecycle analysis approach. This means ensuring sustainability considerations run all the way through to product design and material choices from the outset.

Card recycling won’t solve all environmental challenges, but it turns a challenge into opportunity and it represents a significant step forward for the financial sector. It may even increase customer trust in their bank. 

To watch more great conversations like this one, on all areas of banking, payments and fintech, be sure to check out more of our Virtual Arena’s on ffnews.com.