Mastercard announces the end of the magnetic stripe on credit cards 5d6k6z

In the last week the Mastercard announced that the end of the magnetic stripe on credit and debit cards is near. With the implementation of more secure and interesting technologies, such as less payment and chip cards, keeping the magnetic stripe is no longer a viable option. 2s1w4o

According to Mastercard, the transition will begin in 2024 when the technology will no longer be needed in places like Europe. In the case of the USA, the process will be slower, since there they are a little later in relation to chip cards and the transition is planned for 2027.

With that, starting in 2029, no Mastercard cards will have the magnetic stripes anymore and they will be completely “erased” in 2033. This certainly marks the end of an era, but it is something that needed to happen, since except for the US, big part of the world has already adopted cards with chip and and also methods of payment by approximation.

When did the magnetic stripe appear and why? e1bm

In the early days of the credit card era, information had to be handwritten to each customer. Then this evolved into the generation of carbon paper machine cards and then in the early 60's came the big change with magnetic stripe cards. Unlike the old versions of cards, all the necessary information would be found in this stripe that would not only facilitate the use, but also the life of the sellers.

This made it possible to sell cards to companies of different sizes at the time and remained the standard for cards for decades, after all it was safe and practical. However, for today's market, with new technologies and new security systems, the end of the magnetic stripe is imminent.

What changes with the end of the magnetic stripe on cards? 4v1k3g

With the arrival of EMV chip and cards (Europay, Mastercard and Visa), the three companies that created the standard, both their practicality and security became greater, gradually making the magnetic stripe back. Currently, cards with chip and have also been adapted for payment by approximation not only with the card, but also with digital wallets such as Samsung Pay, Apple Pay and Google Pay through Smartphones and Smart Watches.

With each purchase today, a new transaction code is created by the chip, bringing more security and transparency to the consumer. Since the creation of the EMV standard, around 86% of the population uses the standard, making it necessary to abandon the magnetic stripe at some point. That point, according to Mastercard, is from 2023.

The transition has already started 3i163y

Although current cards still maintain the magnetic stripe design, the transition to new technologies has already started some time ago and gained even more strength in 2021. To get an idea, Mastercard had about over 1 billion sales through less payment in the second quarter of the year, compared to the same time in 2020, whether through QR Codes, digital wallets or any other “less” way.

In addition, people are increasingly apt to new forms of payment and thanks to new smartphone technologies and new versions of the EMV standard, security and resource improvements can be made directly by software, that is, without having to update the parts. of product.

In Brazil we have an interesting advance in this regard and we already have several of these technologies. Payment by approximation, QR Code, Samsung Pay, Google Pay e Apple Pay are being used more and more and the few magnetic stripe cards that remain are those from a clothing store, for example, where you have an exclusive “credit” with the store.

And yet, around here we had the addition of the Pix, a gigantic advance in the bank transfer system that allows it to be made anytime, any day and at no cost. Even large retail stores are now accepting the same for payment, apart from card invoices, which are also gradually including the function.

And you, what do you think of the end of the magnetic stripe on cards? Do you still use any card with the technology? Comment below. And if by chance you haven't ed with Pix and you have doubts about how to use it, here at Showmetech we have a tutorial on how to use it. how to use and your keys in the new transfer system.

Source: Mastercard, The Verge