After 60 years of service, the magnetic stripe will leave the card payments world, albeit withering away in parts of the world for 12 more years. In early August 2021, Mastercard announced that the magnetic stripe could be removed from 2024 and would be gone by 2033.
A Bit of the History
Magnetic stripes were added to our payment cards in the 1960s to make them more secure and give us a faster electronic way to capture more card and payment data; rather than completing paper vouchers by hand or with the embossed card in a ‘zip zap’ machine – watch your knuckles!.
The biggest ‘win’ was that they stopped card number transposition at a merchant or keying errors at the acquirer. It meant that the stripe could also hold significantly more card data, cardholder details and other proprietary/security information for the transaction messaging. The magnetic stripe also facilitated ATM cash withdrawals and card acceptance in POS devices – both standalone and integrated. Subsequently, we would deliver new acceptance locations that included unattended terminals, kiosks etc.
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