Visa is launching a new ‘Eco Benefits’ solution in the United Arab Emirates (UAE) in partnership with Berlin-based fintech ecolytiq and its ‘Sustainability-as-a-Service’ solution.
Visa Eco Benefits will enable Visa issuers to add sustainability-focused solutions to existing Visa credit and debit products. This move also enables cardholders to understand the impact of their spending on the environment, as well as encourages sustainable consumption and behaviours.
The Visa ‘Eco Benefits’ solution features a wide range of tools, including:
- Carbon footprint calculator; a proprietary algorithm that transforms transaction details into the estimated carbon footprint of cardholders’ spend.
- Expanded rewards for cardholders for sustainable behaviours (as decided by their bank).
- Access to environmental projects helping customers towards net zero goals through charity donations and carbon credits.
- Personalised education for customers; small content pieces with recommendations about how to live a more sustainable lifestyle.
- Sustainable card material program and specific marketing of the products with the eco-conscious goal
Otto Williams, SVP head of product, solutions and partnerships CEMEA, at Visa, discussed what the solution offers. Williams said: “With consumer concerns around sustainability at an all-time high, Visa Eco Benefits give financial institutions a tool to help their clients better understand their impact, facilitate daily behaviour change, and make positive climate contributions”.
‘Sustainability is the challenge of our time’
Concern about climate change is at an all-time high worldwide; revealed a recent GlobeScan study. A majority of people living with children under the age of 18 said their children are worried about environmental problems.
The Visa Eco Benefits bundle is a continuation of Visa’s aspiration to be a climate-positive company. Visa explained it plans to use its products, services, data, network and brand to drive sustainable commerce. It is also looking to support the transition to a low-carbon economy. In 2021, Visa announced a pledge to reach net-zero emissions by 2040, ten years ahead of the Paris Climate Agreement goal.
Ulrich Pietsch, co-founder and managing director at ecolytiq, also commented on the launch. Pietsch said: “Sustainability is the challenge of our time, but also one of the greatest opportunities for the finance industry. Equipped with the right tools like the Visa Eco Benefits bundle, the finance industry becomes the driving force for change by educating millions of consumers about their impact and by empowering them to take effective climate action to build the sustainable future we all deserve”.
The Eco Benefits offering sees Visa reaffirm its commitment to driving sustainable commerce and climate action in the payments industry. The payments leader is supporting its clients’ objectives to meet increasing demand from cardholders for sustainable and purpose-led products.
