Australia's first environmentally - and financially - friendly credit card

16 March 2006

One of the Australia’s largest credit unions has launched the first PVC-free credit card in the country – the mecu Environmentally Friendly Visa Credit Card.

The card is the first in Australia to replace PVC with PETG (Polyethylene Terephalate, Glycol-modified), which virtually eliminates the toxic chlorine compounds found in standard credit cards, while maintaining the same temperature-resistance and durability. PVC products have been associated in the past with environmental and health concerns.

Mr Rowan Dowland, mecu’s Group Manager Development, said the new PVC-free card is the latest in a range of initiatives by mecu to ensure sustainability in the delivery of financial services.

“This new card fits the philosophy of mecu and our members. It is a low interest fee-free credit card which enables our members to carry out their banking needs in a sustainable way. With this card, financial prosperity and environmental sustainability are not at odds,” he said.

mecu was the first credit union in the world to become a signatory to the United Nations Environmental Program Finance Initiative. In 2005, mecu became the first financial services institution to win the prestigious Gold Banskia Environmental Award for its goGreen Car Loan, which offers a reduced interest rate for environmentally-friendly cars and has lead to the planting of 22,000 trees annually in the Murray-Darling Basin.

mecu is now in the process of transferring all of its plastic cards to this new material.

The new PETG card is being supplied by Cuscal, a leading supplier of wholesale financial services to credit unions and other customers.

Mr David Ingham, General Manager Retail at Cuscal, said the card is a demonstration of the commitment of credit unions to offering a different kind of banking to all Australians.

“In today’s competitive credit card environment, consumers are constantly being offered low interest rates and rewards programs,” he said. “While these are important, there is no reason why they cannot be complemented with distinctive features which offer members something extra and a chance to contribute to the community through their daily activities.

We are seeing a growing demand from customers for innovative card products such as original designs, environmentally friendly cards or credit cards which are aligned with charities or good-will groups. This is particularly true of financial institutions wanting to attract the marketing savvy generation Y,” Mr Ingham said.

“We hope that all card issuing intuitions, not just credit unions, follow in mecu’s footsteps with this environmentally friendly plastic”.

Background:

mecu is one of Australia’s largest credit unions with some $1.2billion in assets and more than 100,000 shareholders. mecu has made a strong commitment to sustainable business practice and is the first credit union in the world to become a signatory to the United Nations Environmental Programs statement by Financial Institutions on Sustainable Development.