Mastercard has revealed that it plans to stop issuing new debit and credit cards with a magnetic stripe as the technology has become obsolete.
According to the payments giant, by 2033 none of its debit or credit cards will have a magnetic stripe, and banks in many regions will start issuing stripless cards from 2024.
While the UK has moved to a chip and PIN system for all card payments since 2006, the US has not been so quick to catch up as some magnetic stripe systems are still in use. in the country.
Another reason Mastercard will remove magnetic stripes from its cards is because chip and PIN cards as well as newer biometric cards, which will use fingerprints, offer greater security. At the same time, the magnetic strips used in debit and credit cards can wear out over time, forcing customers to ask their banks or credit card companies to issue them new cards.
A future without striptease
While other credit card companies including Visa and American Express also use magnetic stripes in their cards, Mastercard claims to be the first such company to work on phasing out aging technology.
In fact, magnetic tapes were invented in the 1960s as part of an IBM project to create identity cards for people working at the CIA. One of the project’s engineers, Forrest Parry, came up with the idea of attaching information encoded on a magnetic stripe to a plastic card, but it was his wife who came up with the idea of using the heat to make sure the two stick together well.
Contactless payments were already becoming more popular before the pandemic began, but they became the norm once consumers worried about how credit and debit cards were treated by cashiers and others. staff members could help spread the virus further.
Expect to see Visa, American Express and even banks follow suit after Mastercard’s plan to issue cards without magnetic stripes takes effect in 2024.
Via the BBC