FP TrendingAug 19, 2021 11:33:07 IST
Renowned financial service provider MasterCard has announced that it will ditch the magnetic stripe technology that came into being for cards back in the 1960s. With this move, it will become the first to say goodbye to the tech.
They revealed that it will start excluding the magnetic stripes from its credit and debit cards, starting 2024. By 2033, none of the MasterCard debit or credit cards will come with one. This will start in regions such as Europe. In the US, banks will no longer require cards with magnetic stripes, starting in 2027.
It is suggested that the company is moving away from the technology to follow the changing consumer habits and adopt new technologies for payments. It wants to move towards secure options that include microprocessors on the cards, contactless payments, and more.
There might be options like the improved EMV technology and Cloud Tap on Phone that can be adopted. MasterCard has also developed new quantum-resistant specifications for contactless payments.
A July study by Phoenix suggested that 81 percent of American cardholders that were surveyed were more comfortable with a card that didn’t have a magnetic stripe. Furthermore, it was revealed that 92 percent of users would increase or stick to their usage of cards if the stripes were missing. This is enough of a reason for companies to start phasing the tech out.
Ajay Bhalla, president of Mastercard’s Cyber & Intelligence business, in a blog post, said, “It’s time to fully embrace these best-in-class capabilities, which ensure consumers can pay simply, swiftly and with peace of mind. What’s best for consumers is what’s best for everyone in the ecosystem.”
It is also revealed that people are open to new payment options, as per Mastercard’s recent New Payments Index. Hence we can expect a number of new options.