SmartMetric Welcomes the Death of the Magnetic Stripe on Credit and Debit Cards as Chip Based Cards Combined With Biometrics Take Hold

Rhea-AI Summary

SmartMetric, Inc. (OTCQB: SMME) announces that Mastercard will eliminate the requirement for magnetic stripes on new credit and debit cards starting in 2024. This change reflects the decline in magnetic stripe usage due to the rise of chip-based payments. SmartMetric highlights its biometric card technology, which enhances security by combining fingerprint recognition with a secure chip, eliminating the need for magnetic stripes and PINs. As of 2020, 10.8 billion chip cards were issued globally, presenting a significant market opportunity for SmartMetric's innovations.

Positive

• SmartMetric's biometric card technology enhances security against fraud.
• The shift away from magnetic stripes aligns with industry trends, potentially increasing demand for SmartMetric's products.
• The global market for chip-based cards is substantial, with 10.8 billion cards issued by 2020.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- SmartMetric, Inc. (OTCQB: SMME): Mastercard has announced that by 2024 card issuers will no longer be required to use magnetic stripes on their credit and debit cards. “Based on the decline in payments powered by magnetic stripes after chip-based payments took hold, newly-issued Mastercard credit and debit cards will not be required to have a stripe starting in 2024 in most markets.”¹

The death of the magnetic stripe on credit and debit cards as payment cards use the latest technology to harden the cards' defenses against fraud. (Photo: Business Wire)

Storing customer credit card information on a magnetic stripe creates another insecure touch point in the credit and debit card transaction data flow ecosystem when using a card to make a payment. Now that chip-based cards that store the card's number, expiration date and card users name amongst other things, the need to use highly vulnerable magnetic stripes has become a dinosaur legacy technology for today's high-tech credit and debit cards according to SmartMetric.

“Combining the secure chip used now on credit and debit cards with a biometric reader inside the card that is used to identify the card user in order to 'turn on the card' makes the next-generation credit card such as what we have created as an incredibly more secure card for use in the payments industry,” said today SmartMetric’s President and CEO, Chaya Hendrick.

“In fact, our new biometric technology inside the card not only replaces the need for magnetic stripes but replaces the highly vulnerable four-digit PIN that is still used today,” said Chaya Hendrick.

“Fingerprint biometrics and the secure payment chip along with the abandonment of insecure card features as the PIN and the magnetic stripe go to providing a massive hardening of the credit and debit card against the ever-menacing fraudsters according to SmartMetric.

SmartMetric’s Biometric card addresses the multibillion existing chip-based credit and debit card market. Figures published by EMVCo ² reveal that by year end of 2020, 10.8 billion EMV^® chip cards have been issued by financial institutions and were in global circulation – a massive increase of nearly 1 billion credit and debit EMV^® cards compared to the previous twelve months.

To view the SmartMetric Biometric Card please follow this link - Video of the SmartMetric Biometric Card. To view the company website: www.smartmetric.com

SOURCES:

¹ Goodbye magnetic stripe | Mastercard Newsroom

² 10 Billion and Counting: What the Latest EMV® Chip Data Means for Global Payments - EMVCo

EMV is a registered trademark of EMVCo

Safe Harbor Statement: Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Also such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, if we are unable to access the capital necessary to fund current operations or implement our plans for growth; changes in the competitive environment in our industry and the markets where we operate; our ability to access the capital markets; and other risks discussed in the Company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Investors and security holders are urged to carefully review and consider each of SmartMetric Inc. public filings with the SEC, including but not limited to, if applicable, Annual Reports on Form 10-K, proxy statements, Current Reports on Form 8-K and Quarterly Reports on Form 10-Q.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220715005432/en/

SmartMetric, Inc.

Chaya Hendrick

Tel: (702) 990-3687 or (305) 607-3910

ceo@smartmetric.com

www.smartmetric.com

Source: SmartMetric, Inc.

FAQ

What is the new requirement for Mastercard credit and debit cards starting in 2024?

Mastercard will no longer require magnetic stripes on new credit and debit cards starting in 2024.

How does SmartMetric's biometric card technology improve security?

SmartMetric's biometric card technology combines fingerprint recognition with a secure chip, eliminating the need for vulnerable magnetic stripes and PINs.

What market opportunity does SmartMetric address with its biometric card?

SmartMetric addresses the multibillion chip-based credit and debit card market, which saw 10.8 billion cards issued globally by 2020.

How has the usage of magnetic stripes changed in payments?

The usage of magnetic stripes has declined significantly due to the increased adoption of chip-based payments.

What impact does the removal of magnetic stripes have on SmartMetric?

The removal of magnetic stripes may increase demand for SmartMetric's biometric cards as they offer enhanced security.