Mastercard has said that it will soon stop issuing cards with a magnetic stripe to it users and will gradually be replaced with chip cards which allows more secured transaction and enable convenient and quick contactless payments. The financial services firm said that merchants were increasingly relying on chip-and-pin technology to take payments, which is making the stripes obsolete. The firm said it wanted to give plenty of advance warning before the change to allow its remaining partners who still rely on the technology to phase in chip-card processing.
By 2029, no new Mastercard cards will include the stripe and the feature will be discontinued altogether by 2033.
It was gathered that starting from 2024, newly issued Mastercard credit and debit cards in Europe will not be required to have the magnetic stripe, although the requirement will not be dropped in the US until 2027 as that country has not embraced chip-and-pin as readily as the EU and other territories.
The magnetic stripe, which was largely credited to IBM, allowed banks to encode card information onto magnetic tape laminated to the back, paving the way towards much of the modern payment methods in use today.
Today’s chip cards are powered by microprocessors that are much more capable and secure than the older technology. Many also offer added conveniences such as tiny antennae that enable contactless transactions.