Plastic and credit cards are practically synonymous — as in, “I was short on cash, so I whipped out my plastic and bought it.” In fact, researchers estimate that there are over 26 billion plastic credit cards in circulation today, the majority of which are made from first-use “virgin” plastics like PVC. Because these cards do not break down and decompose, they will ultimately add to ever-growing landfills.
Why don’t companies just switch to more sustainable materials like wooden credit cards? Although one eco-conscious company, Treecard, actually created a wooden debit card, the trend hasn’t caught on in the credit world.
“The primary form of card is a polymer card,” says Tom Szaky, founder and CEO of TerraCycle, a Trenton, New Jersey-based recycling company. Among the company’s initiatives, TerraCycle partners with Mastercard in the UK to recycle credit cards. He says that something like wooden cards won’t draw attention away from the classic plastic design. Not only is plastic durable and flexible, he says, but legacy card-reading machines and systems were built with plastic in mind.
“The real answer is there should not be a card at all,” says Szaky. But we’re not yet at the point in which the world is ready for fully cardless payments, he adds. In the meantime, his company and others are looking for ways to make the credit card industry more sustainable.
Learn more about the impact of plastic credit cards, greener card solutions and how far away we may be from going cardless.
[Read: Best Credit Cards.]
The Impact of Plastic Cards
What’s to become of those 26 billion credit cards in circulation? Because of the tiny metal pieces inside, recycling a credit card doesn’t really work, although companies like TerraCycle are trying to change that. In a pilot program in the UK in partnership with Mastercard and select HSBC bank branches, TerraCycle has advanced shredding machines that shred cards into 265 tiny pieces. Then TerraCycle is able to separate the plastic and metal waste and reform it into pellets and powders that can be reused. The company is aiming to bring that technology to the U.S. soon.
For now, while the vast majority of old cards wind up in landfills, payment networks and card issuers are beginning to address the plastic issue. In a major announcement, Mastercard will require any newly produced cards in its network to be made from sustainable materials starting in 2028. “This will likely be a catalyst for the space,” says Josh Hatcher, senior graphic designer at Vericast Card Solutions.
Some issuers have already committed to similar goals. For instance, all Bank of America credit and debit card products are now made from at least 80% recycled plastic. Another issuer, U.S. Bank, announced in late 2023 that it will use recycled materials for all new cards in its Altitude Go line. And the American Express® Green Card is made from 70% reclaimed plastic.
[Read: Best Rewards Credit Cards.]
Eco-Friendly Credit Card Ideas
In order for card issuers to make major changes to their card designs, it has to be practical, but it is getting easier and less expensive, says David Shipper, strategic advisor in the retail banking and payments practice at Datos Insights. “There are more sustainable card material options than ever before, and the quality of these products is much better than in years past,” he says. “This allows the bank or credit union to promote their efforts to be more eco-friendly.”
Some of the options include:
Recycled Plastics
Card companies that commit to using a high percentage of recycled plastics (such as rPVC, rPET, or PLA) can make a big impact. And where that recycled plastic comes from matters as well. “What’s exciting is not just moving from virgin to recycled, but to start looking at using high-risk materials like ocean plastic,” Szaky says. That means sourcing the plastic from waste found in oceans. “When card companies push this, it’s nice to see,” he says.
Alternative Materials
Some companies have been experimenting with greener card designs, such as Treecard’s wooden card. Another example is Bank of New Hampshire, which uses 84% polylactic acid, or PLA, for its debit cards. PLA is a bio-sourced, renewable material made from non-food corn. It is biodegradable within six months.
Going Cardless
Research firm eMarketer said it expects that more than two-thirds of smartphone users will use a mobile wallet by the end of 2024. But even many early adopter mobile wallet users still carry their plastic credit cards since that has always been the primary connection between them and their bank, says Shipper. “Consumers like the security of having a physical card,” he adds, noting that we are likely a decade away from being cardless.
Businesses are getting ready, however. According to the J.D. Power 2024 U.S. Merchant Services Satisfaction Study, 88% of small businesses accept digital wallets compared with the 94% that accept cards, narrowing the gap.
“Using some form of verification like your phone or some biometric to pay — that’s the future,” says Szaky. He points out that China has been using biometrics for years, but the U.S. will take longer to get there. “Legacy systems will need time to rationalize.”
[READ Who Needs a Virtual Credit Card?]
Are Metal Credit Cards Sustainable?
Metal credit cards have been around for some time, but they are mostly reserved for high-end cardholders. “Metal is significantly more expensive than plastic, which is why it is mainly used in upscale and exclusive cards,” says Hatcher. “For that reason alone, I do not foresee many cards in the market switching from plastic to metal.”
Metal cards are also not a great choice for the environment. “Production of metal cards requires significantly more energy than is required to produce a PVC card,” according to Mastercard’s whitepaper, “A Guide to Issuing Sustainable Cards,” “thus any metal card has a higher energy footprint than a PVC card and cannot be endorsed from a sustainability perspective.”
For now, the best option will be recycled PVC card material, which is available at a lower cost and is more easy to source, says Shipper.
How Consumers Can Make a Difference
Moving away from a first-use plastic credit card world will take time, but there are small changes that consumers can make that might help.
— Opt out of junk mail. Szaky points out that some card issuers use fake plastic credit cards in their promotional mailers. Opting out can help prevent some of that waste. Just go to optoutprescreen.com or call 888-5-OPT-OUT (1-888-567-8688).
— Return your expired metal cards. Metal cards cannot be shredded or cut up, but most issuers will send you a prepaid envelope to send the card back for recycling. If they don’t do so automatically, call and ask.
— Embrace digital card options. It’s probably not too far in the future that a card issuer may allow you to opt out of a physical card (similar to how you can opt out of paper statements now). For instance, Apple Card can be used digitally as soon as you’re approved, and you have to put in a request for a physical card (which is titanium). Theoretically, you don’t have to get the card to use the account.
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Can You Get a Wooden Credit Card? originally appeared on usnews.com
