Plastic Bank, a social fintech company, has disbursed about P2 million in cash to plastic collectors in the Philippines since it began operations a decade ago. The group works closely with junk shop owners to provide a steady way for people, especially those outside the formal economy, to earn income and access basic financial services.
Founded by Canadian social entrepreneur David Katz in May 2013, Plastic Bank started with a simple goal: to address plastic pollution and poverty.
“The origin of the work we’re doing around the world actually came from an experience I had near the top of Ocean Park in Manila Bay,” Katz said during an interview. “The water was so clear, even though it was full of floating debris, that I could see the bottom. What I saw was absolute devastation, and I realized the magnitude of the problem.”
Turning plastic into income
Plastic Bank created a mobile app that acts like a digital wallet. It helps people track their plastic collection, save money, and use the platform for financial transactions. Those who collect plastic, such as full-time waste pickers, can exchange what they gather for cash or other rewards.
“All they have to do is collect their plastic, exchange it for cash, and use that for their daily needs,” said Aarthi Kalyanaraman, VP and global head of Marketing & Brand at Plastic Bank. “This is how Plastic Bank promotes financial inclusion. It’s not limited to the informal waste sector, the idea is universal. Anyone, even from a household, can turn plastic into a source of income. In our own homes, we all have plastic. We can collect it, bring it to a branch, and treat it as a secondary income stream. The goal is to see plastic not as waste, but as a resource that can lead to greater financial stability and access to social benefits.”
The app also helps those without formal bank accounts. It records the amount of plastic collected and creates a financial history. Users can store their income, withdraw cash, or access benefits such as accident insurance and grocery vouchers. With a consistent collection record, collectors may even qualify for zero-interest loans.
Financial inclusion
Many people in poverty avoid traditional banks because of the long list of requirements, such as IDs or credit checks. Plastic Bank solves this by linking income directly to the act of collecting plastic. This gives people who were previously “unbanked” a way to access and manage money. It also encourages them to register for valid IDs and digital accounts, such as GCash.
The system empowers collectors to use their plastic as proof of income and gain better access to health, education, and family needs.
Plastic Bank operates in six countries: Brazil, Egypt, Haiti, Indonesia, the Philippines, and Thailand. In the Philippines, it runs over 600 collection points and works with 22,000 members. The company says its efforts have benefited at least 100,000 families.
Collectors are paid above-market rates for plastic. The collected waste is then cleaned, processed, and turned into new materials, helping keep plastics in a circular system. The organization uses blockchain to trace each piece of plastic back to its source, offering transparency and supporting global recycling goals.
By partnering with local governments, schools, and businesses, Plastic Bank also complies with the Philippines’ extended producer responsibility (EPR) law and pushes for a more sustainable future.
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