LAS VEGAS–It won’t be that much longer before cardholders never “swipe” their cards again. But the “card” will remain, just in a different format, according to one person.
Ahmed Siddiqul of the fintech Branch reminded the Money 20/20 conference here that beginning in 2023 Mastercard will be making it optional to have a magnetic stripe on a plastic card, and that two years later it won’t be there at all. Instead, the chip card will be the standard, although that piece of plastic may not have a lot of shelf life left either, he said.
He pointed to what’s happening around the world, where 86% of all card transactions are now done via a chip. In the United States, that figure is 73%.
“If you are going to issue cards next year you’re going to need a chip, but Is the plastic really even needed?” asked Siddiqul.
The Move to Digital
That question has to do with the move to digital payments and tap-to-pay using solutions such as Apple Pay and Google Pay, he said.
“Visa just said it did one-billion tokens issues already. That tells you we are good with paying for things digitally,” said Siddiqul. “Since 2020 we have been in a world where we aren’t going into a physical stores anymore. We’ve gotten used to keying in a card number or using Apple Pay or Google Pay. We’ve gotten accustomed to purchasing meals via Door Dash and Uber Eats.”
He urged his audience to download the McDonalds app for an example of how easy and seamless it is to pay.
“You order, drive right through, and drive on,” he said. “These experiences have gotten a lot better than the traditional swipe.”
A Need for Cards?
So, is there still a need for cards?
“The reality is we actually have an affinity for cards. If you have a checking account, the best way to access it is still your debit card,” he said. “So, is the card going away I don’t think so. It is just turning into something digital. I still believe we are still swiping, just in a different format.”
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