In today’s world, everyone agrees that preserving our planet is crucial for future generations. Governments, corporations and individuals must work together to limit our carbon footprints.  

The global movement toward sustainability, fueled by initiatives like the Paris Accord and a strong push from younger generations, is gaining momentum. The financial sector, especially the payment card industry, has an important role to play in reducing environmental impact, but misconceptions about its sustainability need to be addressed, according to International Card Manufacturers Association (ICMA) member Ahmet Alptekin, sales manager, Linxens. 

Debunking Common Myths 

There’s a prevailing belief that eliminating physical payment cards will lead to a significant reduction in carbon emissions. However, Alptekin says recent research suggests otherwise. Below are the top four myths surrounding the environmental impact of payment cards: 

1. Physical cards are unnecessary because virtual cards on mobile phones are more eco-friendly. 

2. Card payments have a much higher carbon footprint than mobile payments. 

3. Payment cards cannot be recycled, and the materials used remain in the environment for hundreds of years. 

4. Issuers can significantly reduce carbon footprints by limiting physical card issuance or making them optional. 

“These claims are often based on outdated or flawed information,” Alptekin said. “Fortunately, recent studies offer a clearer picture of the true environmental impact of payment cards.” 

Recent Research and Findings 

Several recent scientific studies have shed light on the carbon emissions associated with various payment methods. Notable studies include: 

• “Evaluating the Environmental Impact of Debit Card Payments” (2017): This study calculated the CO2 emissions of debit card transactions at 3.78 grams per transaction. However, an error in the calculation was discovered and corrected in 2023, revealing that the correct CO2 emission per transaction is 0.85 grams—about the same as driving 3 meters in an average car or walking 1 km instead of driving. 

• “Climate Impact Assessment of Retail Payment Services” (2024): This study, commissioned by the Central Bank of Sweden, measured and compared the carbon footprints of cash, card and mobile payments. It confirmed that the emissions from card payments are minimal (0.85 grams per transaction) and that mobile payments often have a similar or slightly higher carbon footprint, especially when considering the energy and materials required for smartphones. 

• “Accelerating the Decarbonization of Payments” (2023): This report suggests that switching from physical cards to virtual cards won’t significantly reduce carbon emissions. Instead, the focus should be on extending the lifespan of payment terminals and eliminating paper receipts. 

Understanding the True Environmental Impact 

The studies reveal that card payments—whether physical or virtual—are already relatively eco-friendly, with the CO2 emissions per transaction being extremely low. Additionally, the environmental impact of mobile payments is often overestimated, particularly when considering the energy and materials used to produce smartphones. 

Interestingly, the material used for payment cards, particularly PVC (Polyvinyl Chloride), can be recycled. PVC is an effective material for the circular economy, making it a sustainable option for card production. Recycling PVC can reduce the carbon footprint of payment cards, with a small reduction in emissions (8%) when using recyclable PVC over standard PVC. 

Key Takeaways for the Industry 

1. Physical Cards Are Not the Culprit: Reducing or eliminating physical cards won’t drastically lower emissions, as card payments are already among the most carbon-efficient methods of payment. 

2. Mobile Payments Aren’t Necessarily Greener: Mobile payment transactions have similar emissions to card payments, and in some cases, their carbon footprint is even higher when considering the environmental cost of producing smartphones. 

3. Recycling and Sustainable Materials Matter: Using recyclable PVC for card production can help further reduce carbon emissions. This is an area where the industry can make significant strides. 

4. The Future of Payments: Instead of focusing solely on reducing physical cards, efforts should be directed at extending the life of payment terminals, eliminating paper receipts and using renewable energy sources for payment infrastructure. 

Research Confirms Eco-Friendly Card Payments and a Greener Future 

The payment industry is already making strides toward sustainability, and the latest research confirms that card payments are relatively eco-friendly.  

“As we continue to explore ways to reduce carbon emissions, it’s crucial to rely on scientifically backed studies to inform decisions,” Alptekin said. 

Moving forward, the focus should shift to improving the efficiency of payment systems, reducing waste and using sustainable materials. By doing so, the payment industry can continue to lead the way in sustainability, ensuring that our financial transactions have a minimal environmental impact for generations to come. 

More Insights on Card Trends 

In 2025, ICMA marks a significant milestone, having represented the interests of the card manufacturing industry—including manufacturers, personalizers, issuers, and suppliers—as its leading global association for 35 years.  

Throughout the year, ICMA members have the opportunity to share insights and knowledge by giving presentations during ICMA webcasts and events. The association’s main event is its annual Card Manufacturing & Personalization EXPO.  

The 2025 EXPO will take place from May 12-15 in Orlando, Florida. As part of the 35th anniversary celebration, ICMA will feature unique experiences throughout the EXPO, reflecting on the association’s rich history and its vision for the future. 

ICMA offers regular educational opportunities, including ACE-Manufacturing, ACE-Personalization and ACE-Advanced Technologies training and exams at the ICMA EXPO. ICMA also offers ACE-Commercial training, which provides sales, marketing, customer service and other key personnel at ICMA member companies with the opportunity to learn the fundamentals of card manufacturing. 

Learn more about the benefits of ICMA membership.