Introduction
In New York, the Franklin National Bank created the first formal credit card in 1951, and this system was expanded. In 1966, the bank named as interbank card association has entered the market, which changed its name to Mastercard. It is a global bankcard program from 1981, which uses laser holograms to prevent any type of fraud in 1983. In 1996, the Mastercard global service was introduced (Mastercard, 2025). Mastercard has more cards than its competitors in the fastest-growing South Asian market, such as Indonesia and Philippians. Mastercard decides to go green in its payments as they pledge to switch 100% of its payments to green payments by 2030 to reduce the use of PVC plastic in card manufacturing.
This essay examines the impact of strategic change on the main business functions i.e. marketing, human resources, operations management, information systems and finances. Further, the organisational behaviour and management theory will be applied in accordance with the recommendations that will enhance the strategies of Mastercard for introducing the green card by 2030.
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Impact of strategic change on business functions
Marketing
Marketing analytics is defined as a collection, management, analysis and reporting of data in data enriched environment by market professionals by the use of tools and technology through which it effectively and efficiently consolidate big data and generate useful insights across touchpoints that locate the market trends and inform marketing decisions and enhance the success of marketing pursuits (Basu et al, 2023). The green payments strategy is a significant opportunity that the marketing aspect of MasterCard can use to enhance brand differentiation and sustain the image of an innovative and responsible organisation. Sustainability is a potent non-price competitive tool in a very competitive payments industry, whereby companies like Visa and American Express dominate the market. Eradicating the use of first-use PVC plastic and encouraging the use of environmentally friendly card materials that are environmentally friendly will help MasterCard to rebrand itself as a sustainable finance leader (Tam et al, 2025).
Marketing communications will become more environmentally responsible, with a lower amount of plastic, and in line with international sustainability priorities like the UN Sustainable Development Goals (Walker, 2021). This strategy can be well-liked by younger and more environmentally-aware consumers, especially the Millennials and Generation Z, who are more likely to support the brands that show ethical and environmental practices. The customer trust and loyalty could be increased by conducting campaigns to emphasise the green card materials, cutting down carbon footprint and collaborating with the issuing banks (Adhikari et al, 2025).
The claims of sustainability should be genuine and backed by facts in order to prevent reputational destruction linked with greenwashing. Since MasterCard is international, marketing communication should be highly specific to various regions since the awareness of environmental issues, as well as regulatory pressure, differs among markets. Consumers in emerging economies might be needy and price sensitive rather than conscious of sustainability, and this would entail a balanced message. In general, the green strategy transforms marketing from a driving force to a strategic contribution that conveys corporate values and vision.
Human resources
Human Resources (HR) will be very important in facilitating the successful adoption of the green payment strategy. The change that is inspired by sustainability involves the ability of the employees to acquire new skills, learn new forms of operation and harmonise personal values with the organisational objectives (Bertassini et al, 2021). Consequently, the HR policies regarding recruitment, training, performance management, and employee engagement will be forced to change.
MasterCard might require hiring experts on sustainability management, environmental compliance and ethical sourcing to assist in the shift towards the use of PVC plastic. Training will be necessary for the current employees in order to develop sustainability consciousness, as well as the realisation of how their functions contribute towards environmental targets (Bilderback, 2024). This kind of training may increase the motivation of employees because the research indicates that people are becoming more inclined towards organisations that make a good corporate social responsibility commitment (Malik et al, 2021).
However, strategic change usually creates resistance, especially when the employees feel that sustainability projects are putting more load on them or adding complications to the operations. HR should therefore facilitate good change management through the facilitation of communication with employees and support of leadership (Mwamba, 2023). Achieving the desired behaviours through implementing sustainability in the performance appraisal and reward systems can also strengthen the desired behaviours.
Culturally, the green payments strategy will be able to enhance organisational identity and pride. Through its sustainability as a value, MasterCard would be able to develop a sense of purpose in its global workforce, enhancing retention and engagement as well as aligning human capital with long-term strategic objectives (Hoichuk and Lyubomudrova, 2024).
Operations Management
The Mastercard green payments strategy implementation is based on operations management. Firstly, for stop using PVC plastic means that the production of cards, sourcing and supply chain management would have to be fundamentally redesigned. MasterCard will have to work together with card manufacturing companies, raw materials suppliers and issuing banks to incorporate other materials like recycled plastics, bio-based materials or low-impact composites.
This change can lead to a higher complexity and cost of operations in the short run. Green materials might cost more and might also need new production technology or modification of processes (Podgornik, 2023). The longevity of the cards, security and international standards are also necessary to maintain, especially at the magnitude and global coverage of MasterCard. Control over quality and assessment of the suppliers will thus be more of a critical operational priority.
Nevertheless, the long-term operations have great benefits despite these challenges. To reduce the exposure to regulatory risks of plastic waste and environmental laws that are increasingly stricter across the world, decreasing the use of virgin PVC plastic would lead to reduced exposure to regulatory risks. Sustainable sourcing may also enhance supply chain resilience through material inputs diversification and removing reliance on volatile raw material markets (Fernández-Miguel, 2022).
Moreover, the green approach favours the principles of the circular economy. The programmes, like card recycling programmes and waste minimisation processes, can enhance the efficiency of the operation and lessen the impact on the environment (Tsimnadis et al, 2023). With the history of MasterCard in terms of its global coordination and standardisation, the organisation is in a good position to facilitate transformation in operations in the international markets to make sustainability an operational ability as opposed to an operational limitation.
Information systems
The information systems will be a primary facilitator of green payments at Mastercard. The proper electronic database is needed to monitor the consumption of the material, quantify the environmental footprint and provide transparency along the global supply chain (Gonçalves and Silva, 2021). The sustainability information needs to be incorporated into the old transaction and reporting systems to facilitate informed decision-making and regulatory adherence. The monitoring of carbon emissions, material sourcing and waste reduction can be performed with the help of data analytics and digital dashboards, so that it is possible to evaluate whether progress towards sustainability made (Huang and Mao, 2024). This is consistent with the role of Mastercard in the digital economy globally and the knowledge it has in large-scale and secure data processing.
The collaboration with suppliers and issuing banks could be supported with the help of information systems, as well as sharing sustainability metrics and best practices. The strategy of green payments can be added to the digital and virtual shift in payments. Mobile wallets, tokenisation and virtual cards ensure that no physical cards are utilised at all, which brings the environmental impact even lower (Dagur et al, 2025). The information system should be able to promote innovation and still provide the levels of customer trust, reliability and security demanded in the payment industry.
The complexity of implementing sustainability data into the core systems is associated with issues such as compatibility of systems, cybersecurity risks and the cost of being involved in the investment (Mahmood et al, 2024). Master card should also make sure that the environmental data collection does not interfere with the security of transactions or the privacy of customers. An information system should be governed strongly in order to strike the right balance between the goals of sustainability and operational integrity.
Finance
Financially, the green payments strategy of Mastercard entails a short term and long-term value creation in the long term (Gupta et al, 2022). Preliminary investments are to be made in research and development, environmentally friendly materials, change of suppliers and information system upgrades. These expenses can put a strain on operating margins, especially in the case of those issuing banks that are opposed to the cost of increased card production.
Through a long-term value view, MasterCard can consider green investments as strategic assets and not costs. This combined financial strategy helps in the sustainable growth and strengthens the environmental responsibility of the organisation (Emma, 2024).
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Organisational Behaviour theory
The organisational behavioural theory of change and employee motivation can be applied well to analyse the implementation of the green card’s payment strategy by master card. The three-step change model by Lewin can be viewed as one of the most applicable frameworks and can be used to explain how organisations can effectively cope with large-scale strategic change (County, 2021). Lewin states that change originates with unfreezing, which brings the current behaviour and mindset into question (Majka, 2024). The case of Mastercard, this includes creating awareness among employees with respect to the environmental impact of first-use PVC plastic and the strategic value of sustainability in long term competitiveness.
The second phase is change, whereby new processes, materials and performance expectations come into play. The workers will have to adjust to new behavioural patterns at work, their relations with suppliers, and sustainability indicators. The important factor to be encouraged at this stage is participation, cross-functional cooperation, and communication to minimise resistance and create acceptance (Ahmad et al, 2023). Leadership support and employee involvement can be of great help to increase commitment to the green strategy.
The last step is refreezing, which aims at making the organisation's culture sustainable. This is possible through the incorporation of environmental goals in the policies, reward mechanisms and day-to-day working practices. Besides, there is the Social Identity Theory, which indicates that employees will be more driven when they associate themselves with organisations that are socially and environmentally responsible (Ahmad et al, 2022). By making sustainability a fundamental organisational value, MasterCard will be able to increase employee engagement, employee pride, and behavioural alignment over the long term towards its green payment strategy.
Management Theory
The choice of MasterCard to adopt a green payments strategy can be critically analysed using a number of management theories, with the most notable ones being Stakeholder Theory and the Resource-Based View (RBV). The argument presented by Stakeholder Theory suggests that organisations need to produce value to as many stakeholders as possible and not just shareholder profits (Freeman et al, 2021). In this regard, the willingness of MasterCard to stop the use of the first-use PVC plastic shows that it is responsible to the environment, customers, employees, regulators, and society collectively. The organisation addresses the environmental issues, which increases the trust of stakeholders and social legitimacy in the international markets (Crossley et al, 2021).
The Resource-Based View also endorses this line of strategies by pointing out how sustainability can be used as a source of competitive advantage. The MasterCard has resources that are hard to duplicate and difficult to imitate, such as the payment network around the world, a formidable technological infrastructure and an excellent brand image. By incorporating sustainability in these core resources, the organisation will be in a position to stand out among others and create strategic value over the long-term (Ahsan, 2024).
Besides that, the successful implementation of this strategy can be greatly applied to the Transformational Leadership Theory. Transformational leaders can inspire and motivate employees through articulating a clear vision and establishing organisational values that are aligned with meaningful goals (Eduzor, 2024). Through the idea of sustainability as one of the key strategic goals, the leadership of MasterCard can support innovation, devotion, and active problem-solving in the entire organisation. All these management theories combined explain how proper leadership and stakeholder-based decision-making are necessary to incorporate sustainability in the strategic framework of MasterCard.
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Recommendations
Some strategic recommendations are offered to make sure that the green payments strategy of MasterCard is successfully implemented. To begin with, MasterCard must use a gradual implementation strategy that focuses more on areas that have high pressure in regulations and a high level of environmental consciousness (Gupta et al, 2022). This will enable the organisation to deal with the risks in its operations, contain expenses, implement the lessons learned and then extend the initiative all over the world.
Second, MasterCard has to enhance its cooperation with sustainable material suppliers, card producers, and issuing banks. The common innovation and the cost-sharing arrangement will assist in alleviating the financial strain as well as increasing the pace of creating lasting and cost-effective green card options (Wimalawansa, 2025). Supply chain stability can also be increased by signing long-term contracts with suppliers.
Third, the organisation needs to invest in employee engagement and capacity building. Training programmes should also be introduced on a comprehensive basis and target the sustainability awareness and impact on the environment on all organisational levels (Arous et al, 2025). Accountability and behavioural alignment will be enhanced through linking sustainability objectives to the performance management systems and reward systems.
Fourth, MasterCard needs to be more transparent and report to the external environment by applying recognised sustainability standards and third-party qualifications. This will enhance the credibility, reduce the greenwashing threats and enhance confidence among the customers, regulators and the investors (Şenyapar, 2024).
Lastly, MasterCard needs to keep on marketing digital and virtual payment systems, e.g., mobile wallets and tokenisation, and green physical cards. This two-pronged strategy will further decrease the environmental impact as it helps in innovation and long-term competitiveness.
Conclusion
It can be concluded that MasterCard is in the process of making a fundamental change to 100 per cent green payments by 2030, owing to the growing environmental concerns and changing stakeholder expectations. Removing the first-use PVC plastic would make sustainability consistent with the long-term tradition of the organisation to innovate and lead in the payments industry. This essay has illustrated that the green payments strategy will impact important business functions such as marketing, human resources, operations management, information systems, and finance in a wide manner.
As indicated in the analysis, the strategy has short-term challenges like cost increment, operational complexities, and possible resistance to the change, as well as a significant long-term value. Better brand image, greater involvement of the employees, lesser regulatory risk, and superior ESG results all contribute to the long-term competitiveness of MasterCard. The relevance of organisational behaviour and management theories also supports the significance of effective leadership, cultural alignment, and stakeholder-driven decision-making in the management of change based on sustainability.
After all, the green payment program of MasterCard makes the organisation a conscientious and visionary leader in the market. By integrating sustainability in its strategic approach and operations, MasterCard will be able to help protect the environment and at the same time enhance organisational performance and its resiliency amidst a more sustainability-conscious global economy.
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