Mastercard to remove magnetic stripes from payment cards from 2024

Mastercard will eliminate the use of magnetic stripes on its credit and debit cards over the next decade as the industry moves towards more secure and convenient solutions such as chips and contactless payments.

Credit: Pixabay

While magnetic strips have been an integral part of payment cards for decades, the industry has imposed demands in recent years that have allowed more payments to shift to more secure chip-based technology. In fact, according to Mastercard, 86% of face-to-face card transactions worldwide are now made with EMV chips.

Magnetic tapes were introduced in the 1960s and allowed banks to encode a user’s banking information onto the magnetic strip laminated to the back of the card.

also read : Mastercard will accept cryptocurrency payments by the end of 2021

Contactless transactions are increasingly popular

The number of contactless transactions is estimated to have increased by a billion in the first quarter of this year compared to last year, according to data from Mastercard. Globally, 45% of face-to-face cashier transactions in the second quarter of the year were contactless. We imagine that these numbers have been greatly helped by the current COVID-19 pandemic, which has gradually contributed to democratize this technology. Last month, we saw that one in two French people used contactless payment to pay for their purchases.

Therefore, Mastercard has just announced that Newly issued credit and debit cards will no longer need a magnetic stripe from 2024 in Europe, 2027 in the United States, and in 2033, no Mastercard will have a magnetic stripe. That leaves more than a decade for the remaining partners who still rely on this technology to gradually introduce chip card processing.

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The company also sees a bright future in biometric cards, which features fingerprint chips and sensors that cardholders can use to verify their identity. We know, for example, that Samsung and Mastercard are working together on a fingerprint sensor credit card.

Source: MasterCard

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