Mastercard announces phasing out magnetic stripes, policy to completely abolish by 2033
Mastercard, one of the credit card brands, has announced plans to phase out magnetic stripes on its cards by 2033.
Goodbye magnetic stripe
On August 12, 2021, Mastercard announced plans to phase out the installation of magnetic stripes on its credit and debit cards and integrate them into IC chip cards. By 2029, the installation of magnetic stripes on newly issued cards will be completed, and by 2033 it will be completely abolished. However, prepaid cards issued in the United States and Canada are not eligible.
Merchant Advisory Group , said, 'We are looking forward to the day when the burden of supporting magnetic stripes will be eliminated. Mastercard has decided to increase payment security and protect merchants and consumers. I commend you for doing so, and I hope other industries will move in the same direction. '
The long-standing payment method of magnetic stripe payments is gradually changing due to the pandemic effect of the new coronavirus infection (COVID-19). According to a Mastercard survey, contactless payments made in the first quarter of 2021 (January to March) increased by 1 billion year-on-year. In the second quarter of 2021 (April to June), 45% of all face-to-face payments worldwide were contactless payments.
A Mastercard representative emphasized the benefits of the abolition, saying that the abolition of magnetic stripes would be beneficial to everyone involved in the card, not just consumers. John Dreckney, CEO of consultancy
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