Mastercard plans to start phasing out magnetic strips on its debit and credit cards in 2024. However, the process will take nine years, as Mastercard expects the process to be complete by 2033, the company said in a press release.
Mastercard says it will transition over to biometric cards that combine fingerprint and chip technology to verify a cardholder’s identity.
Banks in the U.S. won’t need cards to have magnetic strips by 2027, and by 2029, no new cards will have the strips.
“It’s time to fully embrace these best-in-class capabilities, which ensure consumers can pay simply, swiftly and with peace of mind,” said Ajay Bhalla, president of Mastercard’s cyber and intelligence business, in the release. “What’s best for consumers is what’s best for everyone in the ecosystem.”
Magnetic stripe cards were first introduced in 1960. The magnetic tape for the cards was made by IBM.