MCT Cards & Technology, the largest cards manufacturer in the country has launched recyclable cards on the home-grown RuPay network. Card issuers can now issue cards made out of 99 per cent recycled plastic, known as rPVC (Recycled Polyvinyl Chloride) which in turn can again be recycled, thus helping reduce carbon emissions.

rPVC comprises used plastic from industrial waste, pet bottles, and ocean and sea waste which is recycled as per ISO and global standards.

“It’s like an open loop. You’re consuming plastic which is already used, making cards again, and then those cards too again get recycled. So you’re significantly reducing the virgin plastic in use,” said Aman Bindra, National Sales Head - Fintech, MCT Cards.

The company is also in talks with issuers and existing customers to streamline a process to collect old plastic cards and recycle them through customer incentives to submit old cards such as waiver of annual fees.

MCT Cards has card variations with 70 per cent, 90 per cent, 95 per cent and 99 per cent recycled plastic. Every 99 per cent rPVC card weighing 5.5-6 grams, saves on 7-8 grams of CO2 emissions and 3.5-4.0 grams of plastic waste.

Compared with some developed nations where plastic card consumption is on the downtrend, India is seeing consumers still wanting a physical card which means significantly more plastic, pegging annual card issues in India at around 20 crore. The 3-5-year life cycle of cards, and factors such as card upgrades or replacements, and lost cards only add to the waste, he said.

Biodegradable cards

Alternatives to the rPVC include metal cards and PLA (Polylactic Acid) cards which are made out of a cornstarch-based substance and are completely biodegradable. However, these two are much costlier mechanisms as the source material for rPVC is easily attainable, Bindra said, adding that MCT Cards also offers PLA cards.

The company has incorporated other energy efficient processes such as using vegetable or soy-based ink which is more eco-friendly than traditional alcohol-based inks, avoiding metallic foils and using recycled paper for the kits.

“We want to make the entire life cycle of the card to be eco-friendly and not just the plastic to be recycled because then the entire purpose gets defeated,” he said.

Currently, over 90 per cent of MCT Cards’ clients use fresh plastic. However many have shown interest and intent to launch recycled and eco-friendly cards. Bindra is hopeful that once banks and fintechs, especially listed players, notice that the manufacturers are becoming environmentally conscious, they will also migrate to recycled plastic given the increasing traction for ESG, CSR and sustainability initiatives.

“We are already live on MasterCard and Visa with the same product,” Bindra said, adding that MasterCard has committed that by 2026 no card will be made on virgin plastic, which means that the share of new plastic will automatically keep falling.

The card, launched on the RuPay network with NPCI, has been issued by PPI player Transcorp with UK-based fintech Tide for its SME and MSME customers, which has also pledged to become net carbon zero by 2030.

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