The American global payments and technology company Mastercard is preparing to cut out the magnetic strip from all its debit and credit cards dumping the payment method of swiping as it gets obsolete with the emergence of chip-based cards.
This method has remain in use for decades and by billions of people the development of technology has led users to shift towards safer chip-based cards.
A user only has to slot the card inside a reader or simply hold it over a payment terminal, making the entire process easy with chip cards.
The chip cards offer more security and real-time authorisation while making it easier for businesses to accept payments through cards.
The chip cards are power by microprocessors and are more capable.
Many of them are embed with tiny antennae to enable contactless transactions.
Mastercard’s move away from magnetic strips points to changing consumer habits.
Mastercard Said :
“Base on the decline in payments powered by magnetic stripes after chip-based payments took hold, newly-issued Mastercard credit and debit cards will not be required to have a stripe starting in 2024 in most markets,”
Mastercard aims to remove magnetic stripes from all credit and debit cards by 2033.
The Mastercard said the decade-long period will allow its partners ample time to make the transition to chip cards smooth.
Mastercard said Europe will be the first region from where its magnetic stripe cards will begin to disappear.
Banks in the US will not have to issue such cards from 2027 onwards.
No new Mastercard credit and debit cards will be issue with magnetic stripes by 2029.
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