Up has launched a new debit card made from 82% recycled materials and a fresh partnership with waste-data startup Seabin, as the digital bank targets a new generation of eco-conscious spenders.
Up customers using their 2Up joint account can now apply for a physical debit card, created primarily from reprocessed plastic and delivered in a recyclable mailer.
The card costs $10, with $1 from each sale going towards the operation of a waste-gathering Seabin unit in Sydney Harbour.
The creation of a new card comes as mobile and online payments increasingly displace the need for physical debit cards in everyday circumstances.
Four out of every five transactions registered by Up users are digital, said Anson Parker, chief product officer at Up.
However, launching a new physical card makes sense for customers in situations where contactless payments are not accepted, he said, pointing to ATM withdrawals and the lack of contactless payment pathways when travelling overseas.
The $10 fee will also encourage consumers to think about whether the new card is strictly necessary and consider their daily plastic usage, Parker said.
“By charging for it and putting some of that money to support Seabin, we kind of felt that we were going to give people the chance to get a card, but also a chance to reflect that these cards have a cost,” Parker told SmartCompany.
“We didn’t want tens of thousands of people just taking a card because it was free. We want people to really consider whether they really need one.
While each card contains a relatively small volume of recycled materials, Parker said the initiative reflects a broader corporate focus on sustainability.
Investments and financing arrangements made by Australia’s major banks to the fossil fuel industry have become headline news, with climate-conscious customers increasingly aware of how their bank may support carbon-intensive industries.
Up does not offer business accounts, limiting its exposure to corporate lending some customers may find objectionable.
Even so, it exists under the Bendigo Bank umbrella, with its parent bank declaring it does not directly lend to fossil fuel or native logging enterprises.
“They can sort of make a statement that the Big Four cannot make today… I think having those credentials at Bendigo has been great for us,” Parker said.
Dom Pym, who co-founded Up, has used his own family office to invest in climate-focused fintech Bloom.
Pym remains on the Up advisory board, with Parker declaring Up shares a commitment to forward-thinking sustainability efforts.
“I think like if you walked around the Up office, I think you’d find it a very strong belief in sustainability and responsibility,” he said.
“We’re kind of at that stage of life where we’re able to start thinking more about these questions.”
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
