Mastercard Has Launched a Biodegradable Plastic Payment Card Initiative

Each year 6bn non-biodegradable plastic payment cards are produced that need to be replaced every 3 to 4 years. This contributes 5.7m tonnes of plastic to landfills worldwide every year. In 2018, Mastercard launched the Green Payment Partnership (GPP) to tackle this issue. The initiative aims to reduce the payment industry's reliance on non-biodegradable plastic cards and replace these with biodegradable alternatives.

60 financial institutions have signed up to GPP so far, including Santander, DBS and Credit Agricole. DBS has also ordered new payment cards made from polylactic acid, a biodegradable plastic material made from renewable sources such as corn starch and sugar cane. Additionally, unlike other types of plastic, polylactic acid doesn't emit any toxic gas during incineration. But, this material isn't the only one that Mastercard uses. They have developed a directory of various sustainable card materials with information on where to source them from. It also informs banks and card owners how to transition from non-biodegradable cards to biodegradable ones.

Mastercard is not alone in tackling its plastic footprint. Last month, Visa announced it will produce payment cards made with up to 98% upcycled plastic. Both Mastercard and Visa's initiatives are beneficial for the environment, as they will likely lower plastic pollution. However, it should be pointed out that both companies still have work to do. Polylactic acid must also be composted under specific conditions in order to biodegrade. Otherwise, the plastic will not break down properly.