{"id":15891,"date":"2024-03-27T09:00:02","date_gmt":"2024-03-27T01:00:02","guid":{"rendered":"https:\/\/qashier.com\/sg\/?p=15891"},"modified":"2024-05-08T17:42:48","modified_gmt":"2024-05-08T09:42:48","slug":"payments-and-sustainability-eco-friendly-practices-in-the-fintech-industry","status":"publish","type":"post","link":"https:\/\/qashier.com\/sg\/blog\/2024\/03\/27\/payments-and-sustainability-eco-friendly-practices-in-the-fintech-industry\/","title":{"rendered":"Payments and sustainability: Eco-friendly practices in the fintech industry"},"content":{"rendered":"

As today\u2019s young consumers increasingly prioritise sustainable and eco-friendly products, the trend presents a shift in business strategies, including payments.\u00a0<\/span><\/p>\n

According to McKinsey & Company, products with environmental, social, and governance (ESG)-related claims <\/span>grew by 56% in the past 5 years<\/span><\/a>.<\/span><\/p>\n

The World Economic Forum confirms this trend, coining <\/span>global \u201ceco-wakening\u201d<\/span><\/a> across demographics. This trend signals the fintech sector to align financial services with the values of today\u2019s environmentally-conscious consumers by offering eco-friendly payments.<\/span><\/p>\n

Fintech and sustainability<\/b><\/h4>\n

Recent trends are revolutionising how we see eco-friendly payments. This highlights reducing the environmental footprint associated with traditional payment methods. This particularly involves paper and plastic usage, which contributes to ecological degradation.<\/span><\/p>\n

In the United States alone, more than 3 million trees and 9 billion gallons of water are needed to <\/span>produce paper receipts annually<\/span><\/a>. This generates over 4 billion pounds of CO2 and 302 million pounds of solid waste. Meanwhile, physical credit and debit cards are made from PVC, a type of non-biodegradable plastic. In 2019, 22.8 billion credit, debit, and prepaid cards were circulated, and is <\/span>projected to increase<\/span><\/a> to 30.6 billion by 2025.<\/span><\/p>\n

Shifting from cash and traditional card payments to digital payments may have a positive impact. It is<\/span> reported<\/span><\/a> that mining minerals and transporting coins emit over 48,000 tonnes of carbon dioxide. At the same time, the shift to polymer banknotes, despite their longevity, increased pollution, more than traditional paper notes.\u00a0<\/span><\/p>\n

Fintech innovations seem promising in terms of sustainability. Digital payments, virtual cards, and mobile wallets may positively contribute to a more sustainable financial ecosystem. This may lessen the need for manufacturing and disposal of physical cards, thus reducing waste. Also, retailers adopting digital receipt solutions further reduce the need for paper, allowing consumers to access transaction data directly through their bank’s app, promoting a move towards paperless transactions.<\/span><\/p>\n

The shift towards digital payments reflects technological advancements and a growing consumer demand for sustainable practices. As digital payment platforms evolve, they are set to play a crucial role in mitigating the environmental effects of the financial sector.<\/span><\/p>\n

Eco-friendly payments for your customers<\/b><\/h4>\n