Key Highlights:
- Starting in 2024, all Mastercard debit and credit cards will be devoid of the characteristic magnetic stripe.
- According to a December poll, security is the main force for the move.
- By the year 2029, no new Mastercard credit or debit cards will have a magnetic stripe
Ditching the Magnetic Stripe
Starting in 2024, all Mastercard debit and credit cards will be devoid of the characteristic magnetic stripe. The magnetic stripe has become obsolete due to improvements in payment technology. Rather than swiping a card, many individuals pay for items with contactless cards or even their phones. It’s not only more convenient, but it’s also safer. The transition to stripeless cards will be gradual so that users can get used to it. This may begin as early as 2024 in some markets. Mastercard, on the other hand, plans to phase out magnetic stripes entirely by 2033.
Why is it necessary for credit and debit cards to have a recognizable magnetic stripe? It stores client information that is required for transaction authentication. In its release, Mastercard gave a brief history of the magnetic stripe. When computers were considerably less competent than they are now, it was necessary to discover a more easy, quick, and error-free means of recording credit card transactions.
Putting its plans in place for the future
We’ve been utilizing chip cards based on the EMV chip standard since the late 1990s. EMV chips now account for 86 percent of face-to-face card transactions worldwide, according to Mastercard.
According to Mastercard, half of all Americans prefer chip cards to other forms of payment. According to a December poll, security is the main force for the move. Contactless payments, whether made with a card or a digital wallet app, came in second. Only 11% chose to swipe, which makes use of the magnetic strip. When experienced contactless payment cardholders are taken into consideration, the proportion lowers to 9%.
Schedule for new cards
While the studies above focused on the US market, Mastercard claims that the magnetic stripe will be phased out in Europe in 2024. In 2027, banks in the United States will no longer be obligated to provide chip cards with magnetic stripes.
By the year 2029, no new Mastercard credit or debit cards will have a magnetic stripe. Prepaid cards in the United States and Canada are the lone exception. By 2033, magnetic stripes on Mastercard cards will be totally gone.
That means you won’t have to do anything to get stripeless Mastercard cards to replace your present ones. Your banks will most likely take care of everything, issuing stripeless versions only when the present ones expire.
Also Read: TutorOcean Opens Its Platform For Free To Higher Education Institutions
