Blackhawk Network Teams with Mastercard to Add Paper Prepaid Products

Blackhawk Network (BHN) is transitioning Mastercard’s open-loop prepaid products from plastic to paper-based materials, aligning with Mastercard’s goal to eliminate PVC plastics from payment cards by 2028.

As of 2022, 60% of BHN’s physical cards were already paper-based, with the company aiming for 75% by the end of 2023, supported by collaborations with global partners.

Today’s collaboration follows a similar partnership with Visa that was formed in 2023.

Branded payments provider Blackhawk Network (BHN) announced this week it is partnering with Mastercard, transitioning its network-branded open-loop prepaid products from plastic to paper-based materials.

The move will help support Mastercard’s commitment to remove first-use, PVC plastics from payment cards on its network by 2028. It also supports BHN’s sustainability efforts. The California-based company has offered paper-based and recycled products since 2017, and made a pledge in 2022 to convert most of its own original card products to digital or paper.

“Since making our 2022 pledge, we have moved at lightning speed to deliver—and have successfully done so,” said BHN CEO and President Talbott Roche. “As of the end of last year, 60% of the physical cards in our network had been transitioned to paper-based materials, and we are well on our way to achieving our original goal of converting 75% by the end of this year. Taking those initiatives a step further, we are continuing to seek out collaborations with partners like Mastercard, banks, merchants, other card issuers, and manufacturers that operate on a global scale.”

BHN reports that paper-based cards still offer convenience and reliability while posing minimal disruption to consumers, retailers, and issuers. The company is continuing to invest in research and development that will enable the use of paper materials in other channels, including print-on-demand production formats.

“Mastercard’s reach, combined with our own, puts us in a rare position to not only reduce our footprint, but also to lead by example for other companies. We will continue to encourage more businesses to join our efforts and responsibly reduce the environmental impact of the products we use and consume,” added Roche.

The move toward sustainability isn’t the first effort from BHN or major card companies. Last year, BHN announced a partnership with Visa where BHN was helping the card giant transition its open-loop prepaid cards from plastic to sustainable paper-based materials.

Swapping out plastic in favor of paper cards is a good move for prepaid cards, which are often used once or twice and then disposed of. However, it is unlikely we will ever see paper credit or debit cards. Even if they are made to be durable enough to withstand daily transactions, consumers seem to favor thicker plastic and even metal cards, which offer a sense of status and exclusivity.

Photo by DS stories

Source link