Bip customers will now be able to see the carbon footprint of their spending on their digital credit account when they access the Bip app.
This new feature has been jointly created by Bip provider NewDay and carbon footprint management experts Cogo, making it one of the first UK digital credit cards to offer this.
Cogo's algorithm gives users an estimate of the CO2 emissions linked to their spending. Purchases are classified into different categories such as 'travel' and 'fashion', which the algorithm then uses to calculate the emissions of each purchase, based on the carbon-intensity of the particular retailer, or the broader operations of the relevant industry.
Cogo’s carbon footprint feature in the Bip app will show customers the impact of their spending to help build carbon literacy and in turn, create positive change. Bip and Cogo will support this with email, website and in-app prompts providing customers with information on carbon footprint misconceptions, and advice on how to lower their carbon footprint.
Sharvan Selvam, Commercial Director, NewDay: "Bip is digital credit with a focus on simplicity, control and transparency. By partnering with Cogo, our customers can now access information on how their spending habits impact their personal carbon footprints. We are proud to be one of the first credit providers to offer carbon footprint insights to our customers.”
Emma Kisby, EMEA CEO of Cogo: "We are very pleased to be working with NewDay to give Bip customers the chance to understand and manage their carbon footprints. It’s also an exciting new use case for Cogo to expand into. Every month the UK spends nearly £20 billion in credit account transactions. This represents a large chunk of purchasing decisions for which customers previously had no way to understand their carbon impact and make more eco-friendly choices.”
Cogo’s financial services partnership model expands remit
While NewDay is the first specialist credit provider to work with Cogo, the carbon footprint start-up has announced new partnerships with a range of financial services companies in the past twelve months - from high street banks to regional building societies.
Thanks to this business model, Cogo is on track to having over three million customers using carbon footprint management features by the end of 2022. Cogo hopes the continued growth of its partnership model - which expanded into Central Europe thanks to a new deal with Hungarian bank OTP announced in September 2022 - will enable even more consumers to measure, reduce and offset their carbon footprint.