US global payments and technology company, MasterCard, is preparing to phase out the magnetic stripe from all its debit and credit cards, dumping the payment method of Swipe as it becomes obsolete with the emergence of chip-based cards. . Although this method has been in use for decades and by billions of people, developments in technology have driven users to move to secure chip-based cards. With chip cards, the user only has to slot the card inside the reader or simply place it at the payment terminal, making the whole process easier. Chip cards provide greater security and real-time authorization while making it easier for businesses to accept payments via cards.
Chip cards are powered by microprocessors and are therefore more capable. Many of them are embedded with small antennae to enable contactless transactions. Too, mastercard Moving away from magnetic strips indicates changing consumer habits.
“Based on the decline in payments powered by magnetic strips following chip-based payments, newly issued MasterCard credit and debit cards will no longer be required starting in 2024,” Mastercard said in a statement. Statement. The company aims to remove magnetic strips from all credit and debit cards by 2033. It said the decade-long period would give its partners enough time to streamline chip cards.
Mastercard said Europe would be the first region where its magnetic stripe cards began to disappear. From 2027 onwards, banks in the US will no longer have to issue such cards. By 2029, no new MasterCard credit and debit cards will be issued with magnetic strips.
It said it usually takes years for payment processes to become ubiquitous. But digital transformation has accelerated during the pandemic, saying it saw 1 billion more contactless transactions compared to the same period last year. During the second quarter of 2021, 45 percent of MasterCard’s in-person checkouts were contactless.