Throughout the pandemic, the use of contactless payments has soared. While some are still skeptical, the ease of contactless cards and the security of features like Apple Pay have led many to make the jump.
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The magnetic strip started being used after IBM developed it to create identity cards for CIA staff in the 1960s.
Now Mastercard has said that by 2033 none of its debit or credit cards will have strips. Instead, it will use chip-and-pin cards and cards that rely on fingerprints, all to offer greater security.
Other credit card companies like Visa continue developing its contactless cards that only require the user to wave their card over the machine.
With more card companies adding contactless readers to their credit cards, the popularity has continued to grow, especially during the pandemic. In the U.S., Visa said in March its tap-to-pay transactions increased 30% year-over-year, CNBC reported.
“As countries around the world continue to increase tap-to-pay transaction limits, contactless payments are here to stay, and their adoption will accelerate,” Rajat Taneja, president of technology at Visa, said to CNBC.
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In Europe, CNBC reported that Visa has seen 1 billion additional touch-free transactions within a year of contactless limits increasing throughout the region.
One survey of small business owners in eight countries found that nearly half of the customers surveyed prefer contactless payments for their safety. It also found that 48% of customers would not shop at a store if contactless payments were not offered.
Contactless payments through Apple Pay, Google Pay, and Samsung Pay have also become more prevalent in recent years. In addition, their added security benefits have become a significant feature that gets customers interested.
In 2020 Apple payments accounted for 92% of all mobile wallet debit transactions in the U.S., according to Pulse, AppleInsider reported. Samsung Pay and Google Pay accounted for the remaining 8%.
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Apple Pay launched in 2014 and has become a popular mode of payment across the country, especially during the last year with COVID-19 concerns.
One benefit Apply Pay offers its users is privacy; instead of letting retailers obtain card information, the feature gives the seller a randomized device number, stopping companies like Target and Walmart from data mining customers.
With cards losing their strips, contactless cards and payments may become an even more popular way to pay.