2024 was a stark reminder of the escalating climate crisis. In the USA alone, there were 27 confirmed weather and climate disaster events with losses exceeding $1 billion.
Record-breaking temperatures, droughts, floods, significant tornado outbreaks, devastating hurricanes like Helene and Milton, and now unprecedented wildfires in California, underscore the urgent need for action.
The economic toll of climate change is staggering, the 2023 National Climate Assessment Report estimates the United States now spends $150 billion each year on climate-related disaster relief, with many of these major disasters costing much more.
Some estimates suggest the recovery from Hurricane Helene alone will cost more than $250 billion. Even as Los Angeles continues to burn, the estimated losses from this outbreak of wildfires are already estimated at $150 billion and growing.
Despite the overwhelming evidence that climate change is a real – and very expensive - issue, the incoming US administration has signaled a retreat from global climate initiatives. This creates a critical need for the private sector, including the payments industry, to step up and lead the charge towards a sustainable future.
Why Sustainability in Payments Matters
While it is often overlooked in discussions about sustainability, the payment industry has a significant environmental impact (there were nearly 4 trillion global payment transactions processed in 2024). From the production of plastic cards to the energy consumption of data centers to the inherent inefficiency of a typical, multi-step credit or debit transaction, traditional payment methods have a substantial carbon footprint.
Improving the sustainability of payments is not just an environmental imperative; it's a business necessity. More sustainable payments can lead to business benefits, such as:
- Reduced Costs: Eco-friendly practices often lead to significant cost savings through increased energy efficiency, reduced waste, and optimized operations.
- Enhanced Brand Reputation: Modern consumers are increasingly demanding sustainable products and services, including their payment options. Companies that prioritize sustainability can attract environmentally conscious customers and build stronger brand loyalty.
- Regulatory Compliance: As environmental regulations tighten, companies that embrace sustainable practices will be better positioned to comply and avoid costly penalties.
- Innovation and Efficiency: Sustainable solutions often drive innovation and improve operational efficiency, leading to a competitive advantage.
Key Innovations Driving Sustainable Payments
The payment industry is witnessing a surge in eco-friendly solutions:
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- Biodegradable and Recycled Cards: Traditional plastic payment cards have a significant environmental impact and are being replaced by eco-friendly alternatives made from recycled materials, biodegradable plastics, and even sustainable materials like metal and wood.
- Sustainable ATM Solutions: ATMs are a fundamental part of the banking experience, but their environmental impact can be significant due to the energy consumption involved in their operation and the production of paper receipts. Many new ATMs are being designed with energy-efficient technologies, limited paper transactions and some are even solar-powered.
- Digital Wallets and Contactless Payments: Digital payment transactions are faster and more efficient than cash. Mobile wallets and contactless payment technologies further streamline and optimize the payment process, reducing waste, lowering carbon emissions, and minimizing the production of new cards - all while improving the consumer experience!
- Green Data Centers: The many data centers that play a critical role in the processing and storage of payment transaction data, have a substantial carbon footprint. Payment processors are increasingly investing in green data centers powered by renewable energy sources, reducing their carbon footprint.
- Automation and Operational Efficiency: Automation and virtualization technologies are being used to optimize many of the numerous processes required to test, authenticate, authorize, and settle payment transactions - improving productivity and reducing energy consumption.

How Paragon is Helping Drive Sustainable Payments
Paragon Application Systems has been delivering proven testing solutions and expertise to the payment industry for more than 30 years and is now empowering the sector to achieve its sustainability goals in several important ways:
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- Speed and Accuracy: Our innovative solutions enable faster, more accurate, and more complete testing than is possible with manual testing alone. Enhanced and expanded testing capabilities facilitate the development and deployment of new payment technologies, including eco-friendly options like contactless and digital payments.
- Enhanced Efficiency: By automating and streamlining testing processes, Paragon solutions help reduce the time and resources required for payment system development and maintenance, minimizing the environmental impact.
- Remote Workforce: The Paragon platform provides 24x7 anytime, anywhere access to the centralized payment testing environment, supporting remote workers and facilitating improved collaboration. The reduced requirement for onsite testing helps to decrease the need for physical office space, eliminating long employee commute times and minimizing carbon emissions.
- Cloud-Based Solutions: Paragon offers cloud-based solutions that leverage the energy efficiency and scalability of cloud computing, improving operational resiliency and reducing the environmental impact of data centers.
The Time is Now
In an era of escalating climate change, sustainability is no longer a luxury; it's a necessity.
The payment industry has a critical role to play in building a more sustainable future. By embracing eco-friendly solutions, optimizing operations, and leveraging innovative technologies, the industry can contribute significantly to a greener planet while enhancing its own competitiveness and long-term success.
Paragon’s testing solutions provide a range of innovative features and capabilities - including virtualization and multiple automation options, to help any payment industry participant improve the efficiency and sustainability of its testing operations.
From our commitment to delivering timely, accurate test data and providing tools designed to support 24/7 testing environments, we aim to maximize the return on your testing investment - improving the availability, reliability, and security of your payment systems.
If you’re interested in hearing more about how Paragon can help your organization meet and exceed its sustainability targets, please contact us today. Our team of industry experts is ready to learn more about your operations and provide guidance on why optimizing your testing capabilities is good for your business and the planet.
