Mastercard to phase out magnetic stripe on payment cards
Mastercard has announced plans to phase out the magnetic stripe on its payment cards in “most markets” from 2024 following the increasing dependence on chip-based and contactless payments.
According to a statement by the company, the magnetic stripe will begin to disappear in newly issued MasterCard credit and debit cards in Europe, while banks in the US will no longer be required to issue chip cards with a magnetic stripe from 2027 onwards.
The company added that no new MasterCard credit or debit cards with a magnetic stripe will be issued In 2029, except for prepaid cards in the US and Canada.
MasterCard said the long delivery time is specifically designed to give the remaining partners, who are still dependent on the technology, the chip card processing phase.
“It’s time to fully embrace these first-class options that ensure consumers can pay easily, quickly and with peace of mind,” said Master Card Cyber and Intelligence Business President Ajay Bhalla. “The best for consumers is what’s best for everyone in the ecosystem.”
The magnetic stripe, according to MasterCard, was originally developed in the early 1960s by IBM to allow banks to code card information and verify customers’ cards against bad account numbers, but since the advent of chip technology, there has been a decline in magnetic stripe based payments.
RECOMMENDED ARTICLES
Comment
No comments found.