Goodbye to magnetic cards? What will the payments of the future be like with cryptocurrencies?

The world of payments is changing at breakneck speed. Magnetic cards, which for decades have been the most common method of making purchases with plastic, are destined to disappear in the coming years. The reason? The emergence of cryptocurrencies, which offer a safer, faster and cheaper alternative to transfer value.

As announced by Mastercard, one of the main credit and debit card companies in the world, starting in 2024 it will begin to eliminate the magnetic stripe from its plastics, giving way to other more advanced technologies, such as the EMV chip and wireless or contactless payment. . The goal is that by 2033 no Mastercard card will have a magnetic stripe, which will mean a radical change in the way millions of people pay.

But it's not only Mastercard that is betting on the future of payments. Other companies, such as Visa, American Express or PayPal, are also incorporating cryptocurrencies into their services, allowing their users to buy, sell, store and spend digital currencies such as Bitcoin, Ethereum or Litecoin. These currencies, which work through a technology called blockchain, have the advantage of being decentralized, that is, they do not depend on any intermediary, bank or government for their issuance and validation. In addition, they are faster, safer and cheaper than traditional currencies, since they eliminate commissions and waiting times.

Thus, more and more businesses, both physical and online, accept cryptocurrencies as a form of payment, offering their customers greater flexibility and convenience. To do this, there are various options, such as cryptocurrency cards, which allow you to use digital currencies to pay in any establishment that accepts conventional cards, through an automatic conversion at the current exchange rate. Some of the best cryptocurrency cards of 2024 are Wirex, Crypto.com, BitPay, and Buenbit.

Another option is to use mobile payments, which allow you to link your credit or debit card with your smartphone and make payments by identifying yourself using your fingerprint or facial recognition. Some of the most popular applications for this type of payments are Google Pay, Apple Pay and Samsung Pay, which also support cryptocurrencies as a form of payment.

Experts agree that cryptocurrencies are the future of payments, offering a number of benefits to both consumers and merchants. Among them, the following stand out:

Greater security: Cryptocurrencies are immune to fraud, counterfeiting and theft, as they are based on an encrypted and distributed network that guarantees the integrity and traceability of transactions.
Greater speed: cryptocurrencies allow instant payments, regardless of the distance or time, since they do not depend on any intermediary or financial entity that can delay or block operations.
Greater savings: Cryptocurrencies eliminate commissions and costs associated with traditional payments, such as currency exchange, management or maintenance costs, which means savings for both buyers and sellers.
Greater inclusion: Cryptocurrencies facilitate access to financial services for millions of people who do not have a bank account or who live in countries with unstable or restrictive monetary systems, since they only need a mobile phone and an internet connection to use them.
Greater innovation: cryptocurrencies drive the development of new technologies, products and services related to the world of payments, such as mobile applications, virtual wallets, ATMs or e-commerce platforms.
In conclusion, payments with magnetic cards are becoming obsolete due to the advance of cryptocurrencies, which offer a more modern, comfortable and efficient form of payment. Therefore, it is important for consumers and merchants to adapt to this new reality and prepare for the future of payments, which will be increasingly digital, decentralized and diverse.