The magnetic stripe has been a feature of credit and debit cards for decades, but Mastercard looks set to be the first payments network to remove it.
At one point in time, paying with a credit card meant having it swiped, but it’s much more common now to slot the card inside a reader or simply hold it over a terminal. Mastercard says the magnetic stripe isn’t going to be required for much longer due to the combination of changing consumer habits and new technology.
That new technology is the chip all new cards now include, which allows for a much more secure transaction to take place as well as enabling those very convenient and quick contactless payments. This also allows the card to remain in the possession of the consumer at all times, which is preferable for everyone involved. Mastercard mentions biometric cards, which are certainly not common yet, but allow for a fingerprint reader on the card to add an extra layer of security.
The decision to remove the magnetic stripe has been governed by usage. Based on Mastercard’s figures, the stripe won’t be required on cards “in most markets” by 2024. The plan is to remove the stripe from all Mastercard debit and credit cards by 2033, by which point nobody should be relying on swiping a card to pay in any market.
