The European Digital Payments Industry Alliance (EDPIA) is pleased to announce the publication of the  Oxford Economics white paper The environmental impact of digital over cash payments in Europe. 

With the study, EDPIA wants to contribute to and engage in the public debate on how the payment value chain can take actively part in achieving a low carbon economy and showcase which areas are likely to deliver the best decarbonization potentials. 

Oxford Economics has based the white paper on two Life Cycle Assessments (LCAs) to measure the environmental impact of both cash and digital payments at the point of sale in 2022 in three Eurozone countries that each have a different digital payment maturity level – Finland, Germany, and Italy.  

Overall, the authors have found that digital payment has a lower environmental impact than cash in 17 out of 18 impact categories subject to the analysis: a cash payment emits as much CO2 as 2.1  digital payments in Italy, 5.9 in Germany, and 23.5 in Finland. This means that if an average consumer  chose to only pay via digital payment, in one year they would save the equivalent in CO2 of 37 single 

use plastic bags in Italy, 49 in Germany, and 74 in Finland.  

The impact varies according to the country’s development of the digital payment infrastructure. Finland,  for example, is the most advanced among the three countries, with the lowest usage of cash, which leads to low usage of the overall cash system, the existence of a very few ATMs, with a longer distance to travel to find one.  

Oxford Economics has employed the International Organization for Standardization (ISO) guidelines for a comparative cradle-to-grave LCA. The study has been peer-reviewed by a panel of experts before its final publication today, respecting the highest scientific and technical standards. 

Johanna Neuhoff, Associate Director for Economic Consulting Continental Europe at Oxford  Economics, co-author of the study said: “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”.  

“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.” commented Piero Crivellaro,  Chair of the EDPIA Working Group and Corporate Group Head Public Affairs at Nexi.  

Based on the findings, EDPIA members Aircash, Nexi, Teya, Viva Wallet, and Worldline, have worked on a roadmap of initial recommendations for policymakers and industry to significantly reduce the carbon footprint of the payment sector. 

“Paying digitally is a climate action. The quantitative evidence of today underlines the potential of digital  payments to bolster the advancement of the twin transition. The EU needs to set forth ambitious new  objectives for the widespread adoption of digital payments across European society, delivering tangible  benefits to both society and the environment. As we move forward to a new legislative term, we remain  committed to leveraging these insights and collaborating with policymakers and industry partners to  drive positive environmental outcomes in the payment space.” added Emőke Péter, Chair of the ESG  Task Force of EDPIA and Head of European Public and Regulatory Affairs of Worldline.