Credit cards as we know them have their days numbered. Its characteristic magnetic stripe , whose use has fallen in recent times in favor of other technologies such as the chip or contactless wireless payment , will disappear in a matter of a few years.
The Mastercard company has been the first to announce that, starting in 2024, it will begin to get rid of the magnetic stripe on its cards.
As explained in a recent statement , this elimination is due to both consumers having changed their payment habits and the development of new technologies . “Today’s chip cards are powered by microprocessors that are much more capable and secure, and many are also embedded with small antennas that allow for contactless transactions. Biometric cards , which combine fingerprints with chips to verify the identity of the cardholder , they offer another layer of security “, they indicate from Mastercard.
For this reason, “by 2033, no Mastercard credit and debit card will have magnetic stripes ,” the entity has detailed.
Specifically, the magnetic stripe will begin to disappear from Mastercard payment cards in Europe from the year 2024 . In the US, however, it won’t be until 2027 when banks are no longer required to issue magnetic stripe chip cards. With these dates, the company seeks to give companies several years of margin to adapt the payment methods of their customers.
How will the payments be in the future?
The payment of any purchase in different ways, from wallets incorporated in smartphones to mobile applications such as Bizum , has experienced a boom in recent years, to the detriment of cash payments.
“These new technologies are much easier to enable , making them more accessible to even the smallest merchants,” explains Mastercard.
According to company data, in the first quarter of 2021 it registered one 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 world 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-go experience today without any physical changes to digital wallets, contactless cards, and point-of-use terminals. sale, “adds Mastercard.
The magnetic stripe made its debut in the early 1960s at the hands of IBM , allowing banks to encode card information onto a magnetic strip laminated on the back.
“This technique was already being used for audio recordings and computer disk storage before it was brought to cards,” they indicate from Mastercard.
This invention paved the way for electronic payment and later came chip cards , offering greater security, while making it easier for businesses of all sizes to accept cards.
However, since a global EMV chip technology standard was introduced in the late 1990s, cards with this technology began to become the preferred form of payment, to the point that they are now the 86% of card transactions worldwide , says Mastercard.
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