Mastercard is set to become the first financial institution to cut ties with magnetic stripe cards, Report informs referring to ConvenienceStoreNews.
Starting in 2024, newly issued Mastercard credit and debit cards will not be required to have a stripe starting in most markets, and no Mastercard credit and debit cards will have magnetic stripes by 2033.
According to a post on the financial company’s website, the move away from the magnetic stripe points to both consumers changing habits for payments and the development of newer technologies. The microprocessors behind today’s cards are more capable and secure. In addition, many cards are now embedded with tiny antennae that enable contactless transactions.
Biometric cards, which combine fingerprints with chips to verify a cardholder’s identity, offer another layer of security.
Mastercard will start to phase out the magnetic striped in regions, including Europe, in 2024. Banks in the United States will no longer be required to issue chip cards with a magnetic stripe starting in 2027.
“It’s time to fully embrace these best-in-class capabilities, which ensure consumers can pay simply, swiftly, and with peace of mind,” said Ajay Bhalla, president of Mastercard’s Cyber & Intelligence business. “What’s best for consumers is what’s best for everyone in the ecosystem.”
By 2029, no new Mastercard credit or debit cards will be issued with a magnetic stripe. Prepaid cards in the US and Canada are currently exempt from this change, the company said.