There’s no escaping the fact that we’re living in a time of environmental and social tension. Unless people take action to make meaningful changes now, there are likely to be consequences for generations to come. In recent years, the payments industry has started to take this responsibility particularly seriously.
Driving a positive environmental and social impact isn’t just the responsibility of big payment providers. Many startups are making choices that enable themselves and consumers to navigate business in greener ways. Let’s look at a few areas of particular note.
Sustainability Tools
One way the payment industry is supporting sustainability is through the technology it uses. We are witnessing rapid hardware and software advances, many of which are key to making payments greener.
Some digital tools that can boost and track corporate sustainability in the industry include:
- Cloud-based platforms: A huge amount of data is collected, stored, and used by payment businesses every day. Running on-site data processing and storage can put a lot of pressure on the environment, through power usage and land impact, among other issues. Cloud-based platforms offer a sustainable alternative and make it easier for employees to access data on sustainability protocols wherever they’re working from.
- Telecommunication tools: In recent years, there has been a rise in telecommunications tech that supports remote operations. Tools, like Slack and Zoom, enable teleconferencing and minimize the negative environmental impact of actions like commuting and running large corporate offices. As a result, more payments companies — such as Trustly and Circle — are able to go fully remote.
- Impact measurement and management (IMM) software: IMM software is a tool that is integrated into payment companies’ systems. It collects and analyzes data related to the company’s environmental impact. Businesses can regularly generate reports to identify areas of concern and make relevant adjustments.
It’s also worth noting that one of the advances in payments tech is a shift toward more sustainable cards for consumers. Until recently, many companies used single-use plastics, which are non-biodegradable and not produced sustainably.
Now companies like Visa and Treecard are issuing consumers more environmentally friendly options, including recycled plastics and sustainably sourced wood. In the prepaid card space, more companies are moving away from single-use cards, instead opting for reusable key fobs made from environmentally friendly materials.
Green Process Improvements
How payment companies function behind the scenes is key to their positive environmental and social impact. After all, holistic action is key to true sustainability. A commitment to continuous process improvement has various benefits, from enabling greater operational efficiency to identifying how to reduce unnecessary resource consumption. Indeed, by mapping out and closely examining processes, businesses can spot areas for energy-efficient automation. This may even affect employee satisfaction, due to lightened workloads and alignment with environmental values.
There have been some key examples of green process improvements in recent years. For instance, the manufacturing of payment terminals has the potential to produce significant pollutants and unsustainable materials. Yet, with careful planning and process examination, businesses can minimize the production of emissions and even errors that result in wastage. Even companies that don’t produce their own terminals can prioritize partnerships with manufacturers that commit to continuous green process improvement.
Empowering Employees and Customers
Another important way that payment companies are having a good environmental and social impact is by empowering employees and customers to make responsible choices. By providing the resources to stakeholders, providers are having both direct and indirect influence on the world we live in.
One great example of this is ensuring customers know how to approach payments in responsible ways. For instance, Citizens has launched a carbon offsetting account for its corporate clients. These types of programs make it easier for companies to acquire carbon-offsetting credits for unsustainable actions that are unavoidable. Not to mention that it gives businesses access to verifiable offsetting providers, rather than risking collaborating with those that are simply greenwashing.
From an employee perspective, a growing number of providers are committing to giving their workers sustainability training. On the large end of the scale, multinational financial firm Banco Bilbao Vizcaya Argentaria (BBVA) has conducted sustainability training with not just its own employees but also suppliers it partners with. By giving workers at all levels of the organization information about how to use tools more efficiently, minimize their day-to-day waste, and even contribute to local initiatives, there’s an opportunity for more holistically sustainable and socially responsible operations.
Conclusion
The payments industry has begun to adopt processes that make it more sustainable and socially responsible. This includes tech that supports and tracks green efforts, alongside providing useful sustainability resources to consumers. There’s still some way to go, of course. It’s vital for payment companies, their employees, and customers to maintain a dialogue on social responsibility to find innovative ways to keep driving socially and environmentally positive actions.