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Visa Navigate

June 2023

 

1 - 2 Minutes

What is Recommerce?

Recommerce: powering the circular economy

We define Recommerce as a regenerative way to buy, re-use and share goods and services. It includes business models and activities like Resale, Repair, Rental, Refill, Return and Redistribute.

As the world is consuming more than it can replenish, a significant shift is needed in the way we use natural resources if we are to meet global net zero goals by 2050. Our current economy is only 8.6% circular, leaving a massive Circularity Gap. We need to close the Gap by a further 8.4% to close the Emissions Gap by 20321.

To accelerate the transition from a “take-make-waste” model to a circular economy, we need to rethink the way we shop and support small businesses to grow in new sustainable ways. We want to enable businesses and individuals to more easily consider the small changes they can make towards Recommerce activities like Resell, Repair, Rental, Refill, Return and Redistribute. More of us are already making choices that can add up to a big impact on people and our planet, like selling items when we no longer need them, repairing devices, or renting appliances for a short time.

According to research produced in cooperation with GlobeScan, consumers are already making progress – with half of those interviewed engaging in at least one Recommerce activity twice a year – some activities are more popular than others, and only one in five people are familiar with all aspects of Recommerce.2

Why Recommerce matters

Regenerative business models including Resale, Repair and Rental, are estimated to be a €900bn economic opportunity by 20303, with potential to attract new customers, increase sales and lead to mass job creation. As individuals look to make more sustainable choices, businesses can offer them options that inspire changes to the way they shop and support reduction of their carbon footprint.

It’s time to rethink and rebalance

Action needs to be taken to inspire individuals to rethink the way they shop and consume, because, as the world’s climate changes and the cost-of-living increases, the way we shop has never mattered more. Given the fundamental role of payments in modern global economies and its history in enabling large-scale socio-economic progress through the digital payments revolution, we believe that the payments industry has the power to enable a positive shift towards more sustainable behaviours.

Learn more about Recommerce here.

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All brand names, logos and/or trademarks are the property of their respective owners, are used for identification purposes only, and do not necessarily imply product endorsement or affiliation with Visa.

1 The Circularity Gap Report, 2021

2 Visa GlobeScan Research, 2022

3 Ellen MacArthur Foundation, Growth Within Report

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