Mastercard, BHN transitioning open-loop prepaid cards supplied to third party retail networks from plastic to paper-based materials

PLEASANTON, Calif.--(BUSINESS WIRE)--Branded payments provider Blackhawk Network (BHN) today announced yet another step in its ongoing efforts to reduce its environmental footprint at a global level. BHN is supporting Mastercard in transitioning its network branded open-loop prepaid products, distributed globally by third party retailers, from plastic to paper-based materials. The collaboration first went live last year in the US and Canada.

Mastercard aims to scale the accessibility of more sustainable card offerings for consumers seeking a way to reduce the environmental impact of their wallet. In 2023, Mastercard announced it is accelerating efforts to remove first–use, PVC plastics from payment cards on its network by 2028. Thus far, the collaboration between Mastercard and BHN has helped reduce the plastic waste created during the traditional card production process.

Paper-based prepaid products still offer the convenience and reliability of shopping where Mastercard is accepted with minimal disruption to consumers, retailers and issuers. BHN has offered an array of paper-based and recycled products since 2017, and is making incredible strides in delivering on its 2022 pledge to convert most of its own original card products to paper substrates.

"We are continuing to build and lead momentum in our industry-wide efforts to convert payment cards to more environmentally friendly materials," said Talbott Roche, CEO and president of BHN. "Since making our 2022 pledge, we have moved at lightning speed to deliver—and have successfully done so. As of the end of last year, 60% of the cards we distribute 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, card issuers and manufacturers that operate on a global scale. 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."

BHN's ongoing efforts to transition open-loop prepaid cards from plastic to paper-based materials have been widely supported by its enthusiastic partners, many of whom are also making strides to protect the environment within their own businesses.

"We actively seek out partners that help us provide value to our customers and the world around us," said Linda Kirkpatrick, President of the Americas at Mastercard. "Our best estimates have found that the billions of payment cards printed each year—of which gift cards comprise a small portion—account for a small percentage of the world's total plastic usage. But we want to do our part in eradicating plastic usage wherever we can. For years, we have worked to reduce first-use plastics in our cards and are accelerating our efforts to remove first-use PVC plastics from payment cards in our network by 2028. This unique initiative with BHN will serve as a case study and an impetus in spurring widespread innovation in our industry—not just for gift cards, but for other branded products like debit and credit cards. We are energized to be gaining momentum through this collaboration with BHN and look forward to applying key learnings to other facets of our business."

In addition to BHN's work to drive the use of sustainable substrates in retail, it is continuing to invest in research & development that will enable the use of these materials in other more complex channels, such as print-on-demand production formats.

BHN continues to innovate in the digital card space—helping lessen the demand for plastic-based cards altogether while meeting consumers' increasing proclivity for digital products with best-in-class and personalized digital product experiences.

More information on BHN's transition to more sustainable gift cards is available here.

About Blackhawk Network (BHN)

Blackhawk Network (BHN) is the leader in global branded payment technologies. We strengthen relationships between brands and their customers, employees, and partners by transforming transactions into connections. BHN's portfolio includes: Gift Card & digital code products, promotions and distribution that grow revenue faster; Rewards & Incentives that build loyalty and acquisition and are integrated into today's leading platforms; and Payments that enable businesses and customers to access and disburse funds in convenient and innovative ways. BHN's network spans across the globe with over 400,000 consumer touchpoints. Learn more at BHN.com.

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