Digital credit service Bip has added a carbon footprint tool to its app, following a partnership between its parent company NewDay and carbon footprint management service Cogo.
Through this partnership, Bip users will see the carbon footprint of their spending on their digital credit account.
It claims this deal makes Bip one of the first UK digital credit cards to offer this type of service.
Cogo’s algorithm provides users with an estimate of the CO2 emissions linked to their spending. Purchases are classified into different categories, such as travel and fashion. The algorithm then calculates the emissions of each purchase, based on the carbon-intensity of the retailer, or the broader operations of the relevant industry.
In addition to the carbon footprint, the companies will provide customers with an email and in-app prompts that will give them information on carbon footprint misconceptions, and advice on how to lower their carbon footprint.
Speaking on the partnership, Cogo EMEA CEO Emma Kisby said, “We are very pleased to be working with NewDay to give Bip customers the chance to understand and manage their carbon footprints. It’s also an exciting new use case for Cogo to expand into. Every month the UK spends nearly £20 billion in credit account transactions.
“This represents a large chunk of purchasing decisions for which customers previously had no way to understand their carbon impact and make more eco-friendly choices.”
Cogo has established a number of partnerships with financial services companies over the past year. As a result, it is on track to reach over three million customers using its carbon footprint tool by the end of 2022.
Bip is a mobile app that allows customers to use it like a credit card, whether that is in-store, online or in-app.
In other ESG FinTech news, Sugi has expanded to cover fixed income investments. Its platform shows retail investors the environmental impact of their investments.
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