There are billions of credit, debit, prepaid and gift cards in circulation in the US, which has historically meant one thing for card issuers and customers—a whole lot of plastic. But card issuers and manufacturers now have new ways to produce cards and materials that can help reduce waste and increase the use of recycled materials.
These strategies are better for the environment and better for customers too: CPI’s research shows that 93% of debit and credit cardholders said they are concerned about plastic waste in the oceans, and 73% said it’s important for their financial institution to be environmentally conscious. That means how cards are produced, and what they’re made from, are more important than ever in determining which cards stay top of wallet.
So, what does the shift toward more environmentally friendly card programs look like? There are practical strategies card issuers can take to reduce plastic waste, avoid excess inventory, and deliver a product that customers feel good about using.
1. Rethink card production to eliminate inventory waste
One way to reduce plastic waste is to embrace an on-demand card production model. This is a simple shift that can make a big impact.
What does on-demand card production mean? It means that cards are manufactured, personalized, and fulfilled only when they’re needed.
This zero-inventory model eliminates the need for pre-printed stock, helping issuers avoid a common problem: ordering too many cards and having them sit in storage, which is problematic when cards have chips that expire. This leads to unnecessary plastic waste and added costs. It also saves time by eliminating the resources associated with inventory forecasting.
Fast and flexible program changes without plastic waste
Another benefit of an on-demand model is the flexibility it gives issuers. It allows them to respond quickly to any changing market opportunities, like launching a time-sensitive promotion or addressing a spike in card requests. Similarly, it means that issuers can make card design or everyday program changes in a matter of days, without generating any unnecessary waste.
2. Choose more sustainable card materials
Another way to reduce plastic waste is by rethinking the materials used to make the cards. CPI Card Group, Arroweye’s parent company, offers two unique card options to help issuers reduce their environmental footprint:
- Second Wave® cards: These cards use recovered ocean-bound plastic in the card core and are popular with issuers looking for high-impact sustainability options. CPI estimates show that for every million Second Wave® cards produced, more than one ton of plastic is diverted from entering oceans, waterways, and shorelines.
- Earthwise® cards: This card type is made of upcycled post-industrial plastic, helping reduce the industry’s reliance on virgin PVC. This extends the life of plastic that might otherwise go to a landfill.
Both materials allow issuers to align their card programs with sustainability goals while offering customers a product that reflects their values.
What should issuers know about “recycled plastic” card claims?
The move toward more sustainable cards continues to grow. That’s good news. But as more players enter the market, there may be confusion around certain terminology.
For example, some companies promote “100% recycled content” as a selling point—but often don’t clarify which parts of the card that actually includes. In most cases, it applies only to the plastic layers, leaving out the chip, magnetic stripe, and contactless antenna. CPI takes a more complete approach. When they say “100% recycled,” they mean every plastic layer—the core, print layers, and overlay—is made from recycled PVC.
There are important design considerations, too. Some issuers have very strict brand guidelines or unique design requirements that might require using a lower percentage of recycled material. Look for providers that are honest about what’s possible. A partner like CPI can help find the right balance between design and sustainability.
Making sustainable card programs work:
Sustainability is going to play a significant role in the future of card production, and companies don’t want to fall behind. With on-demand card production and sustainable card materials, issuers can show customers they share their values, helping to keep them top of wallet.
If you’d like to explore which approaches might fit best for your programs, our experts can help you map out the right strategy
