This is how next-gen payments can
help merchants meet ESG objectives
This is how next-gen payments can
help merchants meet ESG objectives
We’re living in the decisive decade for climate action. The last eight years have been the eight hottest in the history books, and 2023 is on track to obliterate records.
You don’t have to look far to see the early impacts of climate change. Floods, droughts and extreme weather events are continuing to cause widespread damage and disruption to communities around the world. The crisis is taking a human, economic and environmental toll unlike anything we’ve seen before.
Despite the negative headlines, we can all take bold, immediate action to address climate change and curb its impacts. This includes merchants – from sole traders to global eCommerce giants - who will play an increasingly important role in the route to net zero. While many net zero initiatives are driven by demand from ethically-minded consumers, investors are increasingly prioritising robust environmental, social and governance (ESG) progress from businesses.
So how do payments fit into the large challenge faced by merchants?
Embrace digital payments
Payment methods come with various environmental costs, which can be difficult for both merchants and customers to understand.
Consider cash transactions, which require substantial natural resources, electricity, and fuel for manufacturing banknotes and coins. Additionally, transporting physical cash between locations relies on vehicles, often running on diesel, resulting in high CO2 emissions. A study in 2021 estimated that for every $1USD produced, the environmental cost in terms of resources used and CO2 emitted is $0.26 per note annually. Payments cards are also doing their bit to reduce their carbon emissions and look for alternatives to plastic to produce their cards.
Digital payments have the potential to produce up to 80% less CO2, making them an eco-friendlier option than cash. Embracing virtual cards or mobile wallets can significantly alleviate environmental impacts. For instance, virtual cards eliminate the need for producing new plastic cards and their courier delivery, while mobile wallets leverage existing infrastructure like smartphones and mobile networks, further reducing the environmental footprint of payments. In addition, virtual cards and mobile wallets can eliminate paper receipts. In the US, paper receipts contribute to the consumption of over 3 million trees, 9 billion gallons of water, and emissions equivalent to 450,000 cars on the road, according to Climate Action in 2019.
In eCommerce, numerous eco-friendly initiatives and plug-ins are emerging to enhance sustainability further. Some companies help customers offset the greenhouse gas emissions associated with their purchases. Additionally, digital Point of Sale (POS) terminals enable merchants to support charitable causes by offering customers the option to round up their purchases with donations. These efforts contribute to a more environmentally conscious approach.
Seek sustainable innovations in POS terminals
In an era where environmental consciousness is paramount, the credentials of POS terminals cannot be overlooked. Getnet in Brazil has launched a ground-breaking initiative in the first-ever card machine constructed from recycled parts sourced from waste electrical equipment. By upholding their commitment to sustainability, Getnet aims to distribute around 150,000 of these eco-friendly terminals to approximately 20,000 customers across the country before the year's end.
“Over recent years, organisations spanning payments and fintech have created a breadth of tools and services to help merchants implement robust ESG strategies.”
At Getnet, we continuously seek ways to enhance our environmental efficiencies throughout our entire supply chain. One such endeavour is an innovative project we've undertaken, incorporating electric motorcycles for distributing terminals, utilising 100% recycled materials for terminal packaging, and enabling transactions with zero paper usage. With these initiatives we stride forward, ensuring that our operations align with our responsibility to preserve and protect the planet.
Over recent years, organisations spanning payments and fintech have created a breadth of tools and services to help merchants implement robust ESG strategies. By working closely with trusted payments providers, merchants can play a key contribution in building a better, greener world.
