Chip cards are used by the user simply by slotting the card inside the reader or simply placing it on the payment machine, making the whole process easy. Chip cards make it easier for businesses to accept payments through cards.
American global payments and technology company, MasterCard is about to make a big change for security reasons. The company is preparing to phase out the magnetic stripe from all its debit and credit cards. The company says that now it has become an old system in terms of security. However, the magnetic system has been used by billions of people for decades and provides security for debit and credit cards. MasterCard technology developments are believed to have led users to more secure chip-based cards.
Chip cards are used by the user simply by slotting the card inside the reader or simply placing it on the payment machine, making the whole process easy. Chip cards provide greater security and faster exchanges while making it easier for businesses to accept payments via cards. Chip cards are powered by microprocessors and are therefore considered more secure. Many of them are attached with small antennas to enable contactless transactions.
Mastercard said in a statement that, “Due to the decline in payments from magnetic strips to chip-based payments, new MasterCard credit and debit cards will no longer be required to roll out in 2024.” The company aims to remove magnetic strips from all credit and debit cards by 2033. It said the decade-long period would give its partners enough time to streamline chip cards.
Mastercard said that Europe will be the first region from where its magnetic stripe cards will disappear. From 2027 onwards, banks in the US will no longer have to issue such cards. By 2029, there will be no new MasterCard credit and debit cards issued with magnetic strips.
company said in its statement that digital transformation has accelerated during the pandemic, 1 billion more contactless than the same period last year The transaction is done through the master card. During the second quarter of 2021, 45 percent of MasterCard’s in-person checkouts were contactless.
