Blackhawk Network (BHN) has expanded its sustainability initiatives by transitioning its network-branded open-loop prepaid products from plastic to paper-based materials. This move aligns with Mastercard’s commitment to eliminating first-use PVC plastics from payment cards on its network by 2028.

Initially launched in the US and Canada in 2023, the initiative is part of BHN’s ongoing global effort to reduce its environmental impact. Paper-based prepaid cards maintain the same functionality and reliability as traditional plastic cards, offering simple usability wherever Mastercard is accepted. Since 2017, BHN has provided various paper-based and recycled products.

It is making significant progress toward its 2022 pledge to shift most proprietary card offerings to digital formats or eco-friendly substrates. As of late 2023, 60% of BHN’s physical cards have transitioned to paper-based materials, with the company on track to convert 75% by year-end. Mastercard and BHN’s combined efforts aim to set a precedent for environmental responsibility in the payments industry, encouraging other businesses to adopt similar initiatives.

Beyond the shift to sustainable materials, BHN continues to invest in research and development to enable eco-friendly substrates in complex production formats like print-on-demand. Additionally, BHN is improving its digital card offerings to reduce reliance on physical cards while meeting consumer demand for innovative, customisable digital experiences. The move toward sustainability reflects growing consumer preference for environmentally conscious brands and offers partners an opportunity to strengthen relationships while reducing their ecological footprints.

Sustainable payments: tackling plastic waste in finance The financial sector is witnessing a significant shift toward sustainability, driven by heightened consumer awareness and regulatory focus on environmental responsibility. A 2023 report by McKinsey revealed that 78% of US consumers are likely to choose financial services providers with strong sustainability commitments. Payment companies are responding by adopting eco-friendly practices, with initiatives like Visa’s pledge to reduce its carbon footprint and regional players introducing biodegradable or digital card alternatives.

The push for greener solutions aligns with broader ESG goals, further emphasising the industry's transition toward sustainable growth. Plastic payment cards are a notable contributor to global plastic waste, with approximately 6 billion cards produced annually. These cards, often made from first-use PVC, take decades to decompose, exacerbating environmental concerns.

A study by the World Bank estimates that the payments industry generates over 100,000 tons of plastic waste annually. Efforts by companies like Mastercard and Blackhawk Network to transition to paper-based or digital alternatives address this pressing issue, signalling a critical move to mitigate the sector’s environmental footprint while meeting consumer demand for sustainable solutions. .