Credit cards can be gone sooner than you think
Credit cards as we know them have their days numbered. Its characteristic magnetic strip, the use of which has dropped recently in favor of other technologies such as the chip or contactless wireless payment, will disappear within a few years.
The Mastercard company was the first to announce that from 2024 it will start getting rid of the magnetic stripe on its cards.
As explained in a recent press release, this elimination is due to both the change in consumers’ payment habits and the development of new technologies. “Today’s smart cards are powered by microprocessors which are much more efficient and secure, and many of them are also integrated with small antennas that enable contactless transactions. Biometric cards, which combine fingerprints with chips to verify the identity of the cardholder, they offer another level of security, ”they tell Mastercard.
For this reason, “by 2033, no Mastercard credit and debit card will have a magnetic strip,” the entity detailed.
Concretely, the magnetic stripe will begin to disappear from Mastercard payment cards in Europe from the year 2024. In the United States, however, it is not until 2027 that banks will no longer be required to issue cards. magnetic stripe chip. With these dates, the company seeks to give companies several years of leeway to adapt the payment methods of their customers.
How will the payments be in the future?
Payment for any purchase in various forms, from wallets built into smartphones to mobile apps like Bizum, has seen a boom in recent years, to the detriment of cash payments.
“These new technologies are much easier to activate, which makes them more accessible even to the smallest merchants,” says Mastercard.
According to company data, in the first quarter of 2021, it recorded a billion more contactless transactions compared to the same period in 2020, and in the second quarter of 2021, 45% of all in-person payment transactions at the level worldwide were contactless.
Likewise, EMV chip technology is also evolving to become even more secure. This “will help protect cardholders and merchants from fraud for decades to come with the same half-second touch and mobile experience today without any physical alteration to digital wallets, contactless cards and cards. point of use terminals. sale, ”adds Mastercard.
Magnetic stripe made its debut in the early 1960s in the hands of IBM, allowing banks to encode card information onto a laminated magnetic stripe on the back.
“This technique was already used for audio recordings and storage on computer disc before being put on cards,” they say from Mastercard.
This invention paved the way for electronic payment and later smart cards, providing greater security while facilitating card acceptance by businesses of all sizes.
However, since a global standard for EMV chip technology was introduced in the late 1990s, cards with this technology have started to become the preferred payment method, to the point where they now account for 86% of transactions. by card in the world, explains Mastercard.
A great writer and passionate poet too, he graduated from the University of Florida in journalism and Brad has about 12 years of experience in the news and media section.