An eco-inclined credit card would be another extension of this “consume with consciousness” brand. Another option? Design the card so points automatically fund institutions that drive climate change research.

This would be a tough move for a company driven only by their bottom line — some proclivity toward public impact would be required to ensure success. Credit card rewards operate via a shared subsidy: If the credit card company pays $1, the beneficiary company pays the other $1 for every $2 in benefits a customer receives, says Jake Yormak, a partner at Story Ventures, an early-stage venture fund. But with an eco-friendly card, the “green” recipient for whom the benefits are meant to serve wouldn’t be putting up their $1. This means either a greater financial burden would fall on the credit card company, another company would have to subsidize the cause or points would accrue at a slower pace. But the scheme could be profitable if mission-driven branding and marketing appeal are strong enough to draw and convert sufficient new customers, Yormak says.

He argues that a card with a carbon footprint calculator, which compiles customers’ spending data, could create more meaningful impact than a points-based model with offsets. There’s demand for comprehensive tracking, but people hesitate to provide data about their spending to third-party apps and platforms, so credit credit companies that already have data are well-positioned, he says.

No doubt, there’s something morally incongruous about a quid pro quo where people spend money to appease their conscience. This bartering sounds vaguely reminiscent of purchasing indulgences through the Catholic Church to wipe one’s sins clean to barrel their way to heaven (Martin Luther probably wouldn’t have endorsed this card). One must ask: Do people sin more when they know they’ll have a moral do-over?

Sourced through Scoop.it from: www.ozy.com