Reimagining Sustainable Materials for Payment Cards
If you’ve ever held a credit, debit, or prepaid card in your hand, you’ve likely assumed it’s just a small piece of plastic. But I was surprised to find that behind that little rectangle lies a surprisingly large environmental footprint.
According to the Nilson Report, around 27 billion payment cards were in circulation globally in 2023, projected to reach 30 billion by 2028. Every year, roughly 3.5 billion new cards are issued — equivalent to about 290,000 passengers flying from New York to Sydney, a staggering 518,000 tonnes of CO₂ annually.
But concerns about waste and chemical pollution are pushing regulators, and in turn, financial institutions, to rethink everyday objects — including our payment cards.
Most payment cards today are made from PVC (polyvinyl chloride). It’s cheap, durable, and easy to produce, but it has a dark side: PVC contains chlorine, which can release harmful toxins during production or if burned, and it’s difficult to recycle efficiently.
This has sparked interest in sustainable alternatives. And while these trends are really just emerging, they will only become more topical as waste/pollution and carbon emissions inevitably continue to increase.
Sustainable Materials for Payment Cards
Excuse the hard-to-pronounce chemical terms
rPVC (Recycled PVC)
Uses post-industrial PVC waste (in most consumer goods and mainstream payment cards) to make new cards, reducing carbon footprint and waste. The trade-off? Recycling adds costs, and issuers need to decide who bears that expense.
PETG (Polyethylene Terephthalate Glycol-modified)
Mimics PVC in flexibility and durability but is less toxic — no chlorine, fewer emissions when incinerated. Can be recycled in standard systems and usually requires less energy to produce than PVC. The challenge is limited recycling infrastructure.
PLA (Polylactic Acid)
A bio-sourced plastic made from corn or sugar starch. Compostable and biodegradable, with planting of its raw materials acting as a potential carbon offset. The trade-off: using farmland for plastics may compete with food production.
Ocean-sourced / Ocean-bound plastics
Recycled plastics like PET bottles or harder HDPE jugs are collected from waterways and oceans, then remade into cards. This gives the waste a second life and avoids virgin plastic use. But durability can be lower and production cost higher.
Wood
Cards made from sustainably sourced wood — bamboo, cherry, oak — create a natural carbon sink as the trees absorb CO₂ as they grow. Visually striking, they appeal to premium markets, but are less durable and more expensive, and so, can’t really become more than a niche product.
Digital-first cards
Perhaps the most radical alternative: eliminating plastic entirely. Digital-first cards rely on virtual cards for online purchases and payment wallets for offline transactions. This is an alternative that has made more headway than others mentioned, primarily because it directly saves card issuers physical card costs, but also because it appeals to digitally-savvy customers. Also, the cards can be issued instantly (as opposed to waiting for a card to be delivered, and the infrastructure (mobile wallets and online payments) are widely available.
The only caveat is adoption: some consumers still prefer a physical card for familiarity or offline access. But as wallets, wearables, and digital acceptance continue to expand, digital-first cards are becoming a highly viable and scalable solution.
Who’s Leading the Change?
A few financial institutions, governments and fintech are leading the change:
Mastercard: Advocating sustainable card materials through the Greener Payments Partnership, phasing out first-time PVC cards by 2028, and researching chemical recycling.
Thales Group (Gemalto): Manufactures secure payment cards from multiple sustainable materials and runs recycling programs for their clients.
Fintech: Such as TreeCard UK and Copecto’s Timbercard (Germany) launched wood card pilots. Bonus goes to Bank of Taiwan for currently piloting the Green Go Card.
Japan: Already widely uses PETG as an eco-conscious plastic alternative.
European Union: Banning chlorine in products, which will limit PVC use in cards.
What Issuers Should Consider
Switching to sustainable card materials isn’t just about swapping plastics. As in any business decision, there are implications for every move. Any card issuer who is considering alternatives needs to, at least, think about the following considerations:
Environmental impact: Is the new material truly better than PVC across its lifecycle — sourcing, production, use, and disposal?
Supply chain: Can you source materials reliably and locally? Are backups available?
Manufacturing: Can your current supplier handle the material, or will you need new agreements?
Cost vs. value: How much more will it cost, and can you justify it? Can it support a premium pricing proposition or will you need to increase volume of customers?
Recycling & disposal: Can the card be collected or recycled effectively?
Durability & compliance: Will it last as long as expected, and meet EMV, contactless, and other standards?
Brand authenticity: Does it align with your values and resonate with your customers - such that it’s not perceived as Greenwashing?
Measurement & pilot testing: Can you accurately track impact metrics — tonnes of plastic avoided, carbon saved, toxins avoided.
New customers: Can you win new customers, or appeal even more to current customers, with this new proposition?
The Takeaway
Payment cards may be small, but their environmental impact is not. From PETG to PLA, ocean plastics, wood, and even digital-first cards, the industry is experimenting with ways to reduce emissions, limit toxic chemicals, and give waste a second life.
For financial institutions, moving toward sustainable cards isn’t just about compliance or ESG metrics — it’s a chance to appeal to new and old customers, explore niche markets, and also make a positive environmental difference.