Mastercard Launches Global Plan to Recycle Credit Cards – On Wednesday, Mastercard, a payments company, introduced a worldwide initiative aimed at recycling credit and debit cards, with the goal of preventing billions of cards from being discarded in landfills. The project was launched in collaboration with British lender HSBC Holdings Plc, initially implemented in eight branches across Britain.
Mastercard also announced that banks globally, many of which have already initiated local efforts, would have the opportunity to participate in the program and contribute to the development of economies of scale. “We are inviting all card issuers around the world to partner with us, no matter what region they are in, and offer card recycling to their customers,” said Ajay Bhalla, president of cyber and intelligence at Mastercard Inc.
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As part of the initiative, Mastercard will supply HSBC with shredding machines, each capable of accommodating 10,000 cards, which amounts to approximately 50 kg (110 pounds) of plastic. Once these machines reach capacity, the shredded material will be sent to a plastic recycling facility. Specific financial information regarding the plan has not been revealed.
The pilot project, set to last for an initial duration of six months, will enable customers to recycle plastic cards of any kind, including those issued by competing companies. “This recycling pilot will provide us with some very important insight and will inform our longer-term plans,” said Jose Carvalho, head of wealth and personal banking at HSBC UK. At present, Mastercard has approximately 3.1 billion cards in circulation.
The company estimates that the industry produces around 600 million cards annually, with each card having an average lifespan of about five years. According to the Nilson Report, a reputable industry analysis publication, the total number of cards in circulation reached almost 26 billion in 2022, and it is projected to increase to 28.4 billion by 2027.
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The significant increase in plastic usage has resulted in one of the most significant environmental dilemmas globally, with plastic waste being either buried in landfills or polluting rivers and oceans. Additionally, the manufacturing process of plastic contributes significantly to the emission of greenhouse gases, which contribute to global warming.
