According to The Verge, magstripe technology has existed since the 1960s, but Mastercard is going to be the first major card company to remove them from their products. Mastercard, who supported President Biden’s transition to power and were even going to have a credit card collaboration with the Kardashians at one point, plans to begin its phased removal of magstripes in 2024 with a full removal planned by 2033. The 2024 phase will start in Europe, per The Verge, while the United States won’t see magstripe removals until 2027. Beginning in 2029, no new Mastercards will possess magstripes.
The reason? The technology is good, but it’s outdated. Cards have moved to chip systems, which are more secure and are actually the global standard. According to Credit Karma, 90% of the world’s card transactions come from EMV (Europay, Mastercard, and Visa) chip cards.
Chip payments and contactless payments are the future of credit transactions. The Verge reports that contactless payments, which include the likes of Apple Pay and other distant transactions, rose by 1 billion in the first quarter of 2021 compared to 2020. The higher use of contactless payments is a consequence of the global COVID-19 pandemic, and it’s another way that the pandemic will reshape how we live everyday life, even once it’s over.