The magnetic stripe on Mastercard cards will go down in history in the coming years. The company will phase out this payment system on its credit and debit cards. In the future, they will only implement an EMV chip , which stores payment information to validate operations.
Specifically, Mastercard wants no card with a magnetic stripe to remain by 2033. They will begin to eliminate it from 2024 in Europe . Three years later, the process will start in the United States and Canada. And, starting in 2029, Mastercard will stop making magnetic stripe cards – with the exception of prepaid cards for the US and Canada. The company estimates that four years later none of its credit or debit cards will have this band.
“Now is the time to fully embrace these best-in-class capabilities that ensure consumers can pay easily, quickly and with peace of mind.”
Says Ajay Bhalla, president of Mastercard's Cyber Intelligence business.
This long period of elimination of cards with magnetic stripe will give enough margin so that businesses and companies that still use this payment system can adapt to new technologies, as detailed by the company. The implementation of the magnetic stripe began in 1960, thanks to a technology developed by IBM. Today it is still supported in many businesses, although it is not the most used payment method.
Mastercard wants to eliminate an almost obsolete payment method
The objective of Mastercard is that its cards only integrate an EMV chip, as well as contactless connectivity that allows you to pay by bringing the card closer to the POS. Payment through microchip represents 86.1% of transactions worldwide , according to a report by EMVCO.
On the other hand, a study carried out by Phoenix Consumer Monitor for Mastercard, revealed that 91% of US consumers will continue to pay with their card even if a magnetic stripe is not included.
Mobile payments, in parallel, have grown considerably during the pandemic. The user can link his credit or debit card to the mobile and make payments by identifying himself with his fingerprint or through facial recognition using his mobile phone. In this way, the purchase is much faster and the payment is more secure, since it is not necessary to enter the PIN in the dataphone to confirm the operation.
