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MasterCard will no longer use magnetic strips on its cards from 2024

 Aug 19, 2021 11:33:07 IST

The famous financial services provider MasterCard has announced that it will abandon the magnetic stripe technology that emerged for cards in the 1960s. With this move, it will become the first to say goodbye to the technology.

They revealed that he would start excluding magnetic strips from his credit and debit cards, starting in 2024 . By 2033, none of the MasterCard debit or credit cards will have them. It will start in regions like Europe. Banks in the United States will no longer need magnetic stripe cards from 2027.

MasterCard has revealed that it will begin excluding magnetic stripes from its credit and debit cards starting in 2024. Image credit: Mastercard

MasterCard has revealed that it will begin excluding magnetic stripes from its credit and debit cards starting in 2024. Image credit: Mastercard

It is suggested that the company move away from technology to keep up with changing consumer habits and adopt new technologies for payments. He wants to move towards secure options including microprocessors on cards, contactless payments, etc.

There may be options like enhanced EMV technology and Cloud Tap on Phone that can be adopted. MasterCard has also developed new quantum resistance specifications for contactless payments.

A July study by Phoenix suggested that 81% of U.S. cardholders surveyed were more comfortable with a card without a magnetic stripe. Additionally, it was revealed that 92% of users would increase or stick with their card usage if the bands were missing. This is reason enough for companies to start phasing out technology.

Ajay Bhalla, President of Mastercard's Cyber ​​& Intelligence business, said in a blog post: “It's time to fully embrace these cutting-edge capabilities, which ensure consumers can pay simply, quickly and securely. peace of mind. is best for everyone in the ecosystem. "

It is also revealed that people are open to new payment options , according to Mastercard's recent New Payments Index. We can therefore expect a number of new options.


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