A recent white paper by Oxford Economics has revealed digital payments are significantly less harmful to the environment than traditional cash transactions.
The study, titled “The environmental impact of digital over cash payments in Europe,” was conducted in 2022 across three Eurozone countries—Finland, Germany, and Italy, each at different stages of digital payment adoption.
The report’s findings are striking: digital payments have a lower environmental impact than cash in 17 out of 18 assessed categories. For instance, in Italy, a single cash transaction emits as much CO2 as 2.1 digital transactions. This disparity grows in Germany and Finland, where cash payments equal the CO2 emissions of 5.9 and 23.5 digital transactions, respectively.
The study translates these figures into tangible benefits: choosing digital payments over cash for a year could save the equivalent CO2 of 37 single-use plastic bags in Italy, 49 in Germany, and 74 in Finland.
The environmental benefits of digital payments are linked to the maturity of a country’s digital infrastructure. Finland, with its advanced digital payment systems and low cash usage, exemplifies the potential for reduced environmental impact. The study also discusses the broader implications for the payment value chain in contributing towards a low-carbon economy and explores areas with high decarbonization potential.
The study adheres to International Organization for Standardization (ISO) guidelines and has been peer-reviewed by a panel of experts, ensuring high scientific and technical standards. Quotes from key figures in the study highlight the thoroughness and significance of the findings. “We have been very vigilant in the analyses that have led to the conclusions of the study not to underestimate the elements that compose either a digital payment or cash payment,” Oxford Economics Associate Director for Economic Consulting Continental Europe, Johanna Neuhoff, said.
EDPIA Working Group Chair and Corporate Group Head Public Affairs at Nexi, Piero Crivellaro, also commented on the study’s impact and the industry’s future environmental goals. “We have been pleased to contribute to the LCAs and have with great interest read the results that we are launching today. We are proud to assess the positive contribution of digital payments to the environment, and at the same time we know that the industry can strive to do even better environmentally, and we look forward to continuing our efforts and engaging with the payment value chain to share knowledge and build partnerships for a sustainable future,” Crivellaro said.
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