Mastercard Will Be the First to Remove Magnetic Stripes from Its Credit Cards

I have always been fascinated by the concept of money, and that fascination has only grown with the advent of the credit card. Credit cards were first created in the late 1800s, but the modern credit card only came about in 1950, with the creation of the BankAmericard.

Mastercard is finally ready to ditch the magnetic strip, and the technology will soon be available for all its customers to use. The new cards will only have a new kind of “chip” embedded in them, and customers will be able to use them just like traditional cards. And yes, this is a great move for the company, since it will allow it to simplify business processes, increase security, and provide a more comfortable shopping experience.

Mastercard is set to become the first major credit card company to remove traditional magnetic stripes from its credit cards completely. The American multinational financial services company plans to do this by the end of 2016 and has had discussions with other major banks about the same issue. The company believes magnetic strips are not useful for most of its cardholders, especially younger generations, and therefore the move will allow it to save up to $500 million annually.. Read more about mastercard credit card and let us know what you think.

Mastercard image

This week, Mastercard revealed that it would be the first payment network to use magnetic stripes to swipe left. Since its introduction in the 1960s, the technology has been a mainstay of credit cards, but it is now being phased out in favor of alternatives that offer greater levels of protection.

According to Mastercard’s post, the magnetic stripe is being phased out owing to the widespread adoption of EMV chip-based payments and contactless methods (such as digital wallets), which are now favored by the vast majority of customers.

Only 11% of Mastercard users, according to a recent study, utilize the magnetic stripe. EMV chips are currently utilized for 86 percent of face-to-face card transactions worldwide, according to the firm.

In 2024, Mastercard will begin the process of eliminating magnetic stripes. Stripes will no longer be needed on the payment giant’s credit and debit cards starting in that year. Beginning in 2027, US banks will longer be required to provide chip cards with a magnetic stripe.

By 2033, none of Mastercard’s credit or debit cards will contain magnetic stripes, according to the company.

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IBM saw the potential of magnetic tape for coding information onto cards in the 1960s. Before it was applied to cards, the technology was already in use for audio recordings and computer disk storage.

According to legend, IBM engineer Forrest Parry couldn’t figure out how to attach a strip of tape to a plastic identification card for the CIA and told his wife, who advised melting the strip to the badge using her flat iron. It wasn’t exactly the sort of gear IBM was known for, but it got the job done.

Mastercard is the source.