Mastercard has decided to remove magnetic strips from cards, becoming the first payment network to do so. As such, both newly issued credit and debit cards will not need a bar from 2024 in most markets. In 2033, there will be no corporate card strip.
According to an official statement from Mastercard, the magnetic stripe will begin to disappear in 2024 in regions such as Europe, where smart cards are already widely used. In US banks, it will start in 2027.
“The move away from magnetic stripes points to changing consumer habits regarding payments and the development of new technologies. Today’s chip cards are powered by more capable and secure microprocessors, and many are also integrated with tiny antennas that allow for contactless transactions,” the company wrote in a statement. That combines fingerprints and chips to verify the identity of the card holder provides another layer of security.”
“Real progress also means removing technologies that no longer meet our needs,” said Howard Hammond, executive vice president and head of retail banking at Fifth Third Bank. “The way we shop, pay and interact is changing, and we are meeting these evolving needs with smarter, safer experiences,” he adds.
According to a BBC report, the UK switched to chip and PIN for all card payments in 2006. A BBC spokesperson said the level of global acceptance of chip and PIN is high, and so showing up, is the time to start eliminating magnetic stripes.