In the next 10 years, Mastercard will stop using magnetic stripes on its credit and debit cards. The company wants customers to use newer and more secure methods of payment than passing the card through a payment terminal, informs CNN.
According to the company’s representatives, contact microchip payments currently dominate, and contactless payments are also increasingly used. The microchip is more secure than a magnetic stripe because it creates a unique transaction code that is verified by the bank itself, which reduces the possible risks of card misuse.
“It’s time to take full advantage of the latest payment methods, which ensure that consumers can pay easily, quickly and easily,” said Ajay Bhalla, Mastercard’s cybersecurity chief.
The company wants to slowly stop using magnetic strips from 2024, with the proviso that in 2029 the newly issued cards will no longer be available to it. The change should first affect clients in Europe, including the Czech Republic and Slovakia.
According to European Central Bank (ECB) statistics, the number of payment card holders in Europe is still increasing. One of the main reasons is the coronavirus pandemic, which forced consumers to use contactless methods for payments instead of cash.
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