American society MasterCard announced The end of the magnetic stripe, which has been a part of payment cards since the early 1960s, is nearing. You want to become the first payment network operator to move away from this technology.
The reason for omitting this traditional element is the ever-decreasing number of payments made in this way. At present clearly Payments via communication chip prevail Contactless payments made using NFC technology are also on the rise.
A window into the past
In his contribution, MasterCard goes down in history, when at first it was necessary to manually copy data from payment cards, followed by printing machines (commonly referred to as “iron”). Vendors received lists from card issuers with which they compared customers’ cards.
A fundamental change was brought about by innovations from the early 1960s – magnetism section, which was largely due to IBM. The invention allowed banks to encode card information on a magnetic tape coated on the back of the card. Even before this technology reached cards, it was used to record audio and store data.
This paved the way for electronic payment terminals and smart cards, which provided greater security and real-time authorization. At the same time, they made it easier for businesses of all types and sizes to accept cards. The thin strip has remained on billions of payment cards for decades, as technology has continued to evolve.
end of magnetic tape
Deviation from magnetic tape It refers both to the changing consumer habits of payments and to the development of new technologies. Today’s smart cards contain more powerful and secure microchips, and many are also equipped with small antennas to enable contactless transactions. Another level of security is provided by biometric cards, which use fingerprints to verify the identity of the holder.
The first smart card was introduced in France in the 1960s, but it took years for it to gain ground. The main problem was that different smart cards did not work with every terminal. This eventually led to the creation of a global standard called EMV. Currently, EMV chips are used in 86% of personal card transactions worldwide.
Based on the decrease in magnetic stripe payments after chip payments are introduced, They will not have a newly issued Mastercard debit and credit card as of 2024 in most markets. By 2033, Mastercard credit and debit cards will no longer have magnetic strips, so partners who still rely on this technology have enough time to gradually introduce smart cards.
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