One of the credit card brands, Mastercard, has announced plans to phase out magnetic stripe on its cards by 2033.
On August 12, 2021 (local time), the company announced its plan to phase out the use of magnetic stripes on its credit and debit cards and unify them with IC chip cards. The magnetic stripe will be installed on newly issued cards by 2029 and will be completely abolished by 2033. However, prepaid cards issued in the United States and Canada are excluded.
Magnetic payment is a payment method that has been around for a long time and has gradually changed due to the impact of the COVID-19 pandemic. According to a Mastercard survey, contactless payments made only in 2021 increased by 1 billion compared to the same period last year. In the second quarter of 2021, 45% of face-to-face payments worldwide were contactless.
Mastercard emphasized the merits of the abolition, saying that the abolition of magnetic stripes will benefit not only consumers but also everyone involved in the card. A consultant group official said he is looking forward to the day when the burden of magnetic support will be lifted, praising Mastercard’s decision to strengthen security when making payments and protecting merchants and consumers, and hopes other industries will move in a similar direction. said. Related information can be found here.