Mastercard to phase in chip-based cards as replacement for magnetic strip

The company has announced already preparations preparations to phase out the magnetic strip from all its debit and credit cards, dumping the payment method of swiping as it gets obsolete with the emergence of chip-based cards. The chip cards reportedly offer more security and real-time authorisation while making it easier for businesses to accept payments through cards.

The chip cards are powered by microprocessors and hence are more capable. Many of them are embedded with tiny antennae to enable contactless transactions. Mastercard said Europe will be the first region from where its magnetic stripe cards will begin to disappear. From 2027 onwards, banks in the US will not have to issue such cards. By 2029, no new Mastercard credit and debit cards will be issued with magnetic stripes.