Going green: the environmental benefits of mobile payments

Times are changing across every industry. We’re living in the most eco-conscious market ever seen, while simultaneously facing rapid technology advances in an ever developing digital landscape. What worked only ten years ago is not the model for success today to keep in line with both sustainability and technological demands.

Businesses are adapting to meet consumer hunger for hi-tech but sustainable solutions. The demand is evident. B Corp, a prestigious sustainability accreditation for businesses and organisations, has seen a rapid increase of applications and approvals. As of July 2023 there are 6,909 B Corps worldwide, an increase of 147.8% since 2018. [Source]  As for consumers, a 2023 study found 78% find sustainability important, with 84% alienating themselves from companies with poor sustainability practices. [Source]

A survey of 2,000 18-34 year olds found that 53% respondents wanted their financial service provider to help them reduce their environmental impact and offer suggestions to reduce their carbon footprint. 55% would outwardly not use a bank with ties or investments with a carbon negative association such as fossil fuel investment. [Source]

And that’s where mobile payments come in - the sustainable solution to everyday business transactions, and a simple cost-effective way to show positive ethical practice. But how exactly are they helping the environment?

1. Paper reduction
2. Energy conservation
3. Decreased emissions from transportation
4. Waste reduction
5. Conservation of water resources
6. Encouraging sustainable practices

1. Paper reduction

One of the most evident environmental benefits of mobile payments is the reduction in paper usage. In the U.K. alone, 200,000 trees are destroyed annually to create enough paper for our receipts. [Source] Mobile payments allow for digital receipts and invoices to be sent directly to users' devices, eliminating the need for paper. This reduction in paper usage translates to less deforestation and a decreased demand for energy-intensive paper production processes.

2. Energy conservation

Every time we use our credit or debit cards for payments, there is a backend process that involves data centres and servers to authorise and process the transaction. Compared to these conventional card payments, mobile payments typically consume less energy. Additionally, many mobile payment applications are designed to optimise energy efficiency, thereby reducing their carbon footprint. Over time, as more people adopt mobile payments, the collective energy savings can be substantial.

3. Decreased emissions from transportation

A significant environmental impact of mobile payments is the reduction in emissions associated with physical transportation. Traditional payments often involve travel to brick-and-mortar stores or bank branches, which leads to increased vehicular emissions. With mobile payments, consumers can make purchases from the comfort of their homes, reducing the number of trips made for financial transactions. This decreased reliance on transportation contributes to mitigating air pollution and its associated environmental and health consequences.

4. Waste reduction

Plastic cards are a significant issue for landfill. A 2023 study claims that there are 65 million unused plastic cards (including loyalty, gift, debit and credit cards) in U.K. homes, and there has been 380 tonnes of plastic cards sent to landfill since 2017. [Source] Plastic cards take 400 years to break down due to being unrecyclable. [Source] Consumers are moving more to online banking solutions as an easy way to counter this level of waste, in addition to business models adapting for digital solutions such as loyalty apps to lower their pollution. Mobile payments are yet another way in which consumers and businesses alike can simply ensure safe payment transactions without the environmental cost of plastic cards.

5. Conservation of water resources

While it may not be apparent at first glance, mobile payments indirectly contribute to water conservation. The paper industry, which relies heavily on water-intensive processes, consumes vast amounts of this precious resource. Every year 1.6 billion litres of water are needed to produce paper receipts for the U.K. - enough drinking water for 1.5 million people a year. [Source] Mobile payments and digital receipts eliminate this entirely.

6. Encouraging sustainable practices

As mobile payment platforms continue to gain popularity, they have the potential to influence consumer behaviour positively. Many mobile payment providers are incorporating environmentally conscious features into their applications, such as carbon footprint tracking or the option to donate to green initiatives. By aligning with eco-friendly causes, these platforms encourage users to be more mindful of their impact on the environment, fostering a culture of sustainability.

Essentially... save the planet, one mobile payment at a time.

The global shift towards mobile payments represents more than just a modern convenience; it also brings along a host of environmental benefits. From paper reduction and energy conservation to waste reduction and encouraging sustainable practices, the environmental impact of mobile payments is substantial. By collectively embracing the greener side of mobile payments, we can pave the way for a more sustainable and environmentally-conscious society.

If you want to switch to secure mobile payments without any subscription fees or fuss, you can download the NabyPay app and set up an account within minutes. Create payments and invoices all within the one app, in addition to managing your transactions and offering a seamless, environmentally friendly payment experience for you and the customer. See nabypay.com for more information or search NabyPay in your Apple or Google Play app store.