Revolution in durable and sustainable cards

While physical gift cards remain the most popular choice, e-gifting is considered the fastest growth category. This growth is fueled by greater access to the internet, our emails, mobile phones, and digital wallets. According to Investopedia :”These card types make it convenient for customers to pay for their drinks and meals using an app or in-establishment card reader over the phone to speed up the checkout process.” You can also store codes for digital gift cards inside a mobile wallet app, such as Apple Pay or PayPal’s Venmo. “

While e-gift cards are considered far more eco-friendly they do come with their own set of drawbacks. Account hacking and scammers remain significant concerns. Another issue for this category is the perceived impersonality in which the recipient may look at the gift as not very thoughtful or personal compared to a physical one.

Another challenge: 71% of gift card owners hang onto their gift for over a year making digital wallets or email storage easy places to forget about. Moreover, many e-gift cards include expiration dates in fine print which contributes to the leading cause of gift lost funds at 29%.

Thought to be a more sustainable alternative to plastic cards, paper gift cards are also experiencing rapid growth in the gift card sector. You can see these, along with plastic ones, on the end caps of most major retailers across the globe. These cards come with many benefits including being lightweight, biodegradable, recyclable, aligning with consumer preferences. 90% of gift givers consider a physical gift card an acceptable gift. Additionally, paper cards exhibit up to 65% lower CO2 footprint compared to their plastic counterpart made from virgin materials.

On the flip side, paper gift cards also have drawbacks. Paper cards can fit nicely in a wallet or purse but are easily bent or damaged from repeat handling. If left in a pants pocket, for example, they can be destroyed in a single wash cycle, rendering them unusable.

On the sustainability front, even though the paperboard can be made from recycled fibers or sustainably farmed trees, it has a limited number of times it can be recycled. Additionally, tree farming contributes to deforestation. Even when planting occurs on a 1-to1 basis it still consumes precious natural resources that we count on to reduce CO2 and aide in reversing global warming.

Then we come to the most important natural resource of all: water. Re Viviana with Responsible Water Scientists, published a 2019 report, that approximately 324 liters of water are used to produce 1 Kg of paper, which is almost twice the water footprint of plastic. As highlighted by a member of the ICMA, and Klockner Pentaplast’s Director of Product Line Management, focusing solely on paper or digital solutions as “sustainable’ can be misleading. A truly responsible approach must consider the full lifespan, durability, and usability of a product.

Consider this: How much value is lost each year from damaged or lost cards? According to CBS news 2023, the average adult had $187 of lost, unspent, or expired gift card value! In the US alone, that translates to over $21 billion in unspent gift card value – a figure increasing year-over-year due to misplaced, lost, damaged, or forgotten cards. Why should consumers be ok with just ignoring or losing these funds?

Imagine a gift card that withstands daily wear and tear in a wallet or purse – one that won’t bend, break, or disintegrate if washed. Now imagine it’s also 100% sustainable., That’s exactly what SecondLife^® card films offer. Available in PVC or PET, these innovative card film s are made entirely from 100% recycled plastics. They provide the durability and performance of plastic while significantly reducing environmental impact.

SecondLife^® films can be equipped with standard features such as magnetic stripes, scratch panels, bar codes and signature panels. They may also be customized with embossing, foil stamping and laminated and come in a variety of colors to ensure brands can maintain their identity while being committed to eco-friendly practices.

“The market response to our SecondLife^® card films has been incredibly positive,” shares Kemp Wall, an ICMA member and Director of sales for the Americas at Klockner Pentaplast. “Its functionality, printability , and sustainability attributes demonstrate that gift cards don’t need to be digital or made of paper where they can be damaged or forgotten about. Since launching our SecondLife^® line, we’ve increased recycle content from 25% to 100%, resulting in less material to the landfills and a XXX reduction in CO2 over virgin plastics.” With our buy-back program coupled with recycling partners, these cards are not only recycled but they are recyclable!

SecondLife^® films are manufactured using third party SCS Certified processes and raw materials, providing additional reassurance for environmentally conscious consumers. Recent studies indicate that over 70% of consumers are willing to abandon brands that do not adhere to sustainable practices. By adopting the SecondLife^® card films, retailers can enhance customer loyalty while aligning with an emerging market trend focused on sustainability.

With SecondLife^® films, Klockner Pentaplast is proving that logic, durability, and eco-friendliness can coexist. Retailers embracing this innovative material will reduce their environmental footprint while fostering deeper connections with sustainability-conscious consumers.

Gift Cards: How They Work, Pros, and Cons
Americans have a collective $21 billion in unspent gift cards | CNN Business
Gift Card Statistics (2024): Market Size & Consumer Trends
www.custommarketinsights.com/report/paper-card-gift-market
The water footprint of paper | RWSci