Study: Worldline analyzes the carbon footprint of payments

Worldline has published the results of its study on CO2 emissions in the payments ecosystem. Based on payment lifecycle analyses, the study shows that electronic transactions are generally more environmentally friendly than cash payments. The cases studied also enable us to identify levers for improvement, in order to further reduce the pollution generated by payments.

FACTS

• On May 28, Worldline published a study on CO2 emissions in the payments ecosystem, and more specifically in transactions.
• Entitled "Accelerating the decarbonization of payments", the study analyzes different payment methods such as cash, cards and smartphones to compare their emissions.
• Specifically, the study quantifies the emissions of the three payment methods, taking into account the impact of the entire ecosystem, including banks, network providers and POS terminals. The main conclusions are as follows:
• In-store cash transactions generate significantly more CO2 emissions. According to the study, a single cash transaction emits 36.8g of CO2e. This amount is mainly due to the handling of cash at ATMs, including transport. In comparison, a card payment emits 2.45 g of CO2e.
• In-store electronic transactions could generate even fewer CO2e emissions than today. Most of the CO2e emissions from in-store electronic card transactions come from the physical components of the process, such as the paper receipt, the plastic card or the payment terminal. Computer processing of transactions accounts for only a very small proportion of emissions, due to the centralization of modern data centers capable of processing billions of transactions.
• The study was carried out in Belgium, and the data is calculated in CO2 equivalent (CO2e) using life cycle assessment methodology.

CHALLENGES

• Identifying levers for improvement: The report highlights several avenues for reducing CO2 emissions, particularly in physical card payments, a method that already consumes very little. Stopping the printing of receipts, replacing physical cards with virtual cards, or replacing Eftpos terminals with smartphones are all solutions that would lead to a significant reduction in the carbon footprint of the payments ecosystem. With these measures, the CO2 emission level of a traditional card payment would fall from 2.45 to 0.74 g CO2e.
• A trend that reduces CO2 emissions: The report also shows that the shift in payment habits away from cash to new technologies is a major factor in reducing CO2 emissions. Similarly, the reduction in the use of cheques also contributes to this reduction in emissions.

MARKET PERSPECTIVE

• France is pushing for a reduction in overall emissions, particularly in payments. The anti-waste legislation applied since August 2023, for example, has lifted the obligation to print paper receipts for most products and services. This measure makes it possible to reduce the number of tickets and therefore lower CO2e emissions when paying by card.
• For its part, Worldline continues to innovate, and a few days ago launched with Visa a virtual card solution for online travel agencies. This strategic operation aims to expand the company's activities by moving up the payment value chain.