While payment cards remain a crucial touchpoint between banks and consumers, they are undergoing significant transformations. Driven by ESG commitments, environmental responsibility is taking priority, with banks seeking to minimise virgin plastic waste by embracing recycled materials and take-back schemes for expired cards.
Meanwhile, accessibility improvements, such as biometric authentication and tactile design features, are continuing to develop to ensure everyone, regardless of their physical or cognitive abilities, can navigate banking services with ease. At the same time, digital and AI-powered innovations are enhancing the way people interact with their cards, from seamless activation experiences to hyper-personalised services tailored to individual preferences.
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These trends reflect a broader shift in the payments sector – the need to balance sustainability, innovation and inclusivity to create a more responsible and customer-centric future. So, what does this mean for the industry in 2025?
Cards will take centre stage in ESG strategies
Environmental responsibility is playing an increasingly critical role in shaping the payments landscape in 2025. The latest data from the European Central Bank shows there are approximately 720.6 million payment cards in circulation within the Euro area, which averages out to two per person.
It’s therefore crucial that as these cards expire, they are recycled in an environmentally responsible way, thereby preventing plastic waste at the end of their lifecycle and helping banks to meet their ESG goals. Leading bank Santander has already made significant progress in this space by recycling credit and debit cards into materials for community street furniture, such as benches, in Spain and Portugal. Cards can also be recycled into pipes, flooring and traffic cones, ensuring that the plastic material avoids becoming waste.
In 2025, more banks will support this recycling process by implementing take-back schemes for customers to return their cards, similar to UK bank NatWest when they launched ‘Reverse Vending Machine’ in 2023 for this very purpose.
This year, more banks will shift their main portfolio to 100% recycled plastic cards made of either post-industrial or post-consumer recycled plastic, to reduce the use of new virgin PVC. Despite preconceptions about high costs, these are well established and highly affordable. 100% industrially compostable cards made of non-edible corn starch, will also provide an option that completely removes virgin PVC altogether.
Closing the accessibility gap will remain an urgent priority
Equally crucial to progress in ESG strategies is the social element, and the financial ecosystem will take further steps this year to encourage inclusivity among end users.
The European Accessibility Act (EAA) officially comes into force on 28 June 2025, marking a significant milestone and setting a new standard for inclusivity in Europe. The legislation requires all banking and financial services to be accessible to everyone, including those with disabilities, or with limited access to smartphones or devices. It represents a unique opportunity for banks and payment providers to redesign and improve their services.
2025 will see more banks designing their payment cards for accessibility purposes. For example, the implementation of accessibility notches for easy orientation into an ATM will help customers withdraw cash and access other services.
Technology will also bring new innovations for financial institutions and their customers. Fingerprint-activated biometric security on payment cards removes the need for passwords or PINs to be inputted in the payment process, enabling visually-impaired people, for example, to complete transactions more easily. In the onboarding process, QR-enabled audio content and braille can be included in mailers to guide users through the process.
Personalisation will reach new heights
2025 will be the year of continued diversification in card materials to support the individual lifestyles of consumers. In addition to a greater number of sustainable options being used for payment card materials, banks will also be able to prioritise personalisation with customised payment cards. AI, for example, will be utilised more often by consumers in developing their own card designs.
Beyond payment cards, banks will have opportunities in 2025 to deliver intelligent solutions to customers with so-called phygital issuance-as-a-service solutions. Digital interfaces, such as apps, streamline the card activation process, while customers still benefit from in-branch services at the same time.
A continued evolution
In 2025, the payments landscape will continue to evolve as the need for greater sustainability, accessibility and personalisation continues to grow. Banks and financial institutions have an opportunity to enhance customer experiences through personalisation. A stronger focus on ESG will push the industry towards more sustainable cards, while also ensuring that financial services remain inclusive for all. As technology advances, the challenge will be to strike a balance between innovation and practicality, ensuring that digital progress supports the diverse needs of modern consumers.
Maya Tuyen Reisinger is Product Management Director at G+D
