Going Cashless for the Environment

Cash or Card, or how about the more environmentally friendly option? Payments are a huge part of our everyday lives, and today, there are so many different options that we have in terms of making our payments. Yet, I have personally never considered that my choice of payment method has an environmental impact as well. Here’s some tips and facts that can help you make the most informed decision:

Payment by Cash

Cash used to be our go-to mode of payment just a few years ago, and while it has reduced in popularity with the increasing number of options available, it is still important to understand the impact that cash has on the environment. According to the American Council of Science and Health, mining and transporting coins has led to the emission of over 48,000 tonnes of carbon dioxide. In the UK, over 900,000 tonnes of coins are produced every year, bringing emissions through the roof. Notes may not contribute to similar emissions, but polymer notes are printed on a specialised polypropylene plastic that is derived from petroleum, which is significantly harmful to our environment as well. On top of these, the main form of obtaining these cash - ATM machines - also contribute to the detrimental impacts onto the environment. It has been calculated that ATM machines silently use up tonnes of generated electricity to prepare to churn out cash at any given moment.

Payment by Card

How about our credit cards, surely they produce less harmful impacts? Unfortunately, payment cards are made from the synthetic plastic PVC, which doesn’t biodegrade and produces a lot of greenhouse gas. Besides that, it is also bad for the health of humans, especially with over 6 billion payment cards manufactured each year worldwide. The usage of cards also tend to generate more receipts, which according to Mobile Transaction, contain the incredibly toxic chemicals BPA & BPS, can cause side effects as well. With 11.2 billion receipts printed annually in the UK, and 90% of receipts trashed immediately after being accepted, a lot of toxic chemicals are being needlessly spread into the environment.

What is the Future of Payment?

With these common modes of payment having such negative impacts on the environment, are there alternatives? One alternative would be payment by QR code - it is paper-free, and does not release harmful toxic chemicals as receipts do. As these can be accessed simply through our phones, it leaves no additional carbon footprint as well. Fortunately, various vendors in Singapore and even SMU have started making use of QR codes for payment, and it is up to us to make the best use of the available technology to reduce our environmental impact.

Victoria Wong

Logistics & Sponsorship Department