Published 4 months ago.
About a 4 minute read.
Image: United Repair Centre
Visa is partnering with COS, the Ellen MacArthur Foundation and more to address the barriers that stop consumers from embracing a circular economy.
Visa has announced its first partners for its
Recommerce Behavioral Insights Lab — a new initiative running rapid,
real-world experiments to understand and share how businesses can help consumers
actively engage in the transition to a more circular economy.
With 92 percent of consumers surveyed claiming they want to live a more
sustainable life, but only 16
taking active steps to change their behavior, Visa will partner with leading
brands to better understand how to bridge this “intention/action
— aimed at driving more circular behaviors and business models while ensuring an
The first two experiments will be run in partnership with H&M-owned fashion
brand COS and the United Repair
Centre; and will take place in various places
across France, the Netherlands, Germany and the UK.
Resale is an important part of fashion’s shift to circularity; however, with
only 47 percent of
participating in resale activities more than once a year, many brands are still
learning the many motivations and novel barriers that affect customer interest.
For its part in the partnership, COS will explore the motivations and compelling
experiences that increase consumer participation in the rapidly growing resale
And through its experience offering high-quality repair services to leading
European apparel brands, the United Repair Centre will explore the barriers
that stop consumers from repairing their garments, and how to make
clothing-repair services more accessible and beneficial for all.
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Using insights from behavioral science, the Lab will identify the factors that
drive consumer behavior towards more sustainable choices while also uncovering
barriers that hinder behaviors such as resale, rental and repair. The Lab plans
to test and share the results of interventions that have been designed to
overcome these obstacles, with the ultimate goal of assisting businesses and
consumers in adopting more sustainable behaviors.
To conduct these experiments, Visa has devised a comprehensive methodology that
includes defining the behavioral barrier, establishing a behavioral
intervention, designing the experiment, carrying out the experiment, analyzing
the data, and sharing the results openly. The foundation of the methodology and
lab is based on the MINDSPACE behavioral
that decodes the nine effects thought to have the most influence on behavior. By
following this methodology, Visa will then evaluate experiment data and merchant
feedback, share learnings, and create and share guides and playbooks for
businesses to implement the intervention.
The experiments will test the different experiences and motivations with
customers in a variety of environments — including online and in store — to
provide a better understanding of the precise triggers of changing consumer
behaviors, experimenting with factors such as improving visibility, access,
community, reward, ease or affordability.
The experiments will be open sourced, with key findings available through
downloadable playbooks so that other businesses can use this knowledge to help
develop their own circular models and be part of the wider recommerce
"Over half of Europeans are already regularly engaging in recommerce activities
like resale,” explains Katherine
Brown, VP of Sustainability
and Inclusive Impact at Visa Europe. “By uncovering what actually gets
shoppers to change their behavior and by leveraging our data and insights from
these experiments with United Repair Centre and COS, we can identify new ways to
make sustainable fashion a must-have purchase and accelerate the transition to
the circular economy for all."
Mindworks fintech startup
Twig and the Ellen MacArthur
Foundation (EMF) will also lending
their expertise to the Behavioral Insights Lab as foundational partners. The
combination of Visa's equitable commerce and design experience, EMF's circular
design insights, Twig's knowhow in the fintech-meets-resale space, and
Mindworks' key role in designing behavioral interventions will supercharge
discovery of actionable insights and scalable solutions, that encourage
"We have been working with Visa, as a Strategic Partner in our Network, to
ensure circular design is incorporated in the Behavioral Insights Lab. This
project is absolutely a design-led initiative, and an important step in the
journey towards bringing together different actors to collectively imagine and
test new ways of engaging people and enabling circular-economy choices,” says
EMF Strategic Design Manager Anna
Queralt. “The learnings from this
iterative project will sit alongside our Adaptive Strategy for Circular
to help organizations leverage design as they transition from linear to circular
— and will support not only the fashion industry, but all actors across
different sectors who want to bring their users and customers along on their
The creation of the Behavioral Insights Lab follows the recent announcement of Visa's
as a preferred way to buy, reuse and share goods and services.
To become a partner in the Recommerce Behavioral Insights Lab, visit https://globalclient.visa.com/recommerce.
Published Jul 25, 2023 8am EDT / 5am PDT / 1pm BST / 2pm CEST