Accelerate the decarbonisation of payments.

An in-depth analysis of ways to reduce CO₂ emissions in payment systems and adapt to the decarbonisation imperative.

Towards 1g CO₂ equivalent per transaction

As global efforts to reduce carbon emissions gain momentum, the decarbonisation of payment systems has become an urgent challenge. Worldline stands at the leading edge of this movement, having initiated thorough Life Cycle Assessments (LCA) to assess the environmental impact of different payment methods. The study, prepared by Patrice Geoffron (Professor of Economics from the Paris Dauphine-PSL University) and sponsored by Worldline, seeks to quantify and compare the eqCO2 emissions related to the different payment methods (cash, cards, phones) for in-store and online transactions. The findings of this paper underscore a crucial pivot point for payment systems worldwide. With the goal of reaching unparalleled efficiency and environmental savings, our actions today can lead to a more sustainable tomorrow. As we stand on the brink of advancing payment technologies, we have the power to steer the financial sector towards practices that not only benefit consumers and stakeholders but also safeguard our planet.

This paper uncovers the following:

Digital and environmental transition of payment systems:

Discover the favouring shift from cash to digital payment methods accentuated by the Covid-19 pandemic and understand the environmental considerations including not just the physical components like bankcards and terminals, but also the hidden impacts involving networks and data centers required for digital transactions.

Life Cycle Assessments unveiling environmental footprints:

Gain insights from Life Cycle Assessments (LCA) comparing the carbon footprint of in-store card transactions to their online counterparts, and to cash transactions. We discuss the comparative impacts and offer a unique perspective on the environmental cost of payment methods.

Achieving the 1g eqCO₂ target per transaction:

Identify the possibilities of achieving payment transactions at 1g eqCO₂per unit. The study highlights the significant reducing potentials through eliminating printed receipts and, in the long term, potentially replacing bankcards and payment terminals with smartphone technology, leading to significant environmental savings.

Next steps for eco-conscious payment transactions:

Learn about the identified strategies for optimising payment methods to favor the environment. From banks extending the life span of cards and terminals to retailers abandoning printed receipts, we discuss the multifaceted approach needed to decarbonise payments effectively.

The environmental impact of transitioning from traditional in-store transactions to smartphone transactions.

This analysis compares the environmental impact of traditional in-store card transactions with smartphone transactions. Explore the details to learn how moving away from paper tickets and transitioning to simplified smartphone transactions could substantially cut CO₂ emissions and help build a greener future.